Homeowners are seeking employment opportunities, cheaper alternatives and the excitement of the unknown as they look to upgrade their property.
The ING Upgraders Homeownership Survey Report found 51 per cent of Australians considered moving interstate within the next year to find their dream home.
And where else would they head to but Melbourne which is one of four upgrading hot spots.
Head of Retail Banking at ING Melanie Evans said one of the biggest stresses associated with upgrading was the cost.
“As Sydney remains an expensive city to live in, many Australians are choosing to move further out (or) interstate to get around these financial stresses,” Ms Evans said.
“There are over 20 per cent of current or future home upgraders who have moved or are considering a move to Melbourne.
“The price to income ratio in Melbourne, while relatively high, is lower compared with Sydney.”
Ms Baker said long term homeowners were seeing serious equity accumulated in the Melbourne housing market.
“Although the market has slumped almost 10 per cent since peaking in late 2017, dwelling values remain 28 per cent higher than they were five years ago and 69 per cent higher than ten years ago,” Ms Evans said.
“Victoria is continuing to show a very high rate of positive interstate migration which is likely fuelling the upgrade trend.”
The survey of 510 upgraders found 31 per cent took in a flat mate last year to ease some of the financial pressure.
Families and singles or couples were equally likely to move or consider moving interstate.
National Property buyers director Antony Bucello said the sheer number of upgraders who considered a move intestate was a surprise.
“I believe the lifestyle more than the property market is a key reason why people are moving to Melbourne,” Mr Bucello said.
“And I think there would be a big percentage of high end property purchases.
“Particularly compared to Sydney as there is more bang for your buck here.”
Brad Teal Real Estate agent Andrew Butler was also surprised by the high number of upgraders who considered travelling interstate.
“It comes down to job opportunities, our growing economy and a broad range of properties on offer,” Mr Butler said.
“Melbourne is big enough to cater for lifestyles in different pockets and different areas.
“But as an agent, if someone says they are relocated interstate, it is usually to do with work opportunities.”
Mr Butler said suburbs within a 15km radius of the CBD and properties in regional areas were popular.
“There has been a resurgence of job opportunities in regional areas over the last five years,” Mr Butler said.
“While families are going bigger and looking for a prime location, I’m not sure if they are all buying at the top end of the market.”
Mr Butler expected the interstate upgrading trend would continue in the future.
“If people are not happy, they’ll look somewhere else,” Mr Butler said.
“But 51 per cent is a huge number.”
Other hot spots for upgraders include Byron Bay, Central Coast and Brisbane according to the ING Report.