The concentration of the population to capital cities and their surrounds partially explains the high cost of living in these cities on an international level, according to RP Data.
As at July 2011, 64 percent of Australians lived in a capital city, according to RP Data’s Property Capital Markets Report - Winter 2012.
According to the report, 55.6 percent of the nation’s population live in the four largest cities - Sydney, Melbourne, Brisbane and Perth.
In addition, the five most populous non-capital city housing markets account for an additional 10.1 percent of the country’s population.
“Between the eight capital cities and the five largest non-capital city markets, most of which are adjacent to the capital cities, almost three quarters of the country’s residents live in these regions (74.2 percent),” the report says.
The Sydney metropolitan area alone is home to more than one in every five Australians, according to the report.
“The highly centralised nature of the population creates significant demand for housing within the major centres and, in particular, within the more desirable areas of these cities, located closer to the city centres,” it says.
According to RP Data, this phenomenon partially explains why capital city home values in Australia appear to be high on an international basis.
Meanwhile, four of the five most populous non-capital city housing markets are located directly adjacent to the capital cities.
The Hunter and Illawarra, north and south of Sydney, are more populous than Canberra, Greater Hobart and Darwin, according to the report.
Additionally, the Gold and Sunshine Coasts, south and north of Brisbane, are more populous than Greater Hobart and Darwin.