Snapshot of Australia’s 12 Enterprising Cities
- Host 36% of Australia’s population (almost 10 million)
- Host 37% of Australian workers (around 5.2 million)
- Higher population growth (2.5 % vs 2.3% for rest of Australia)
- Greater worker growth (3.9% vs 3.1% for rest of Australia)
- Low unemployment rate (3.7% vs 3.7% for rest of Australia)
The growth trajectories of 12 of some of Australia’s fastest growing cities have been captured in KPMG’s new report, Enterprising Cities – How they are shaping future growth. As a group – Adelaide, Cairns, Canberra, Darwin, Geelong, Gold Coast, Hobart, Perth, Newcastle, Townsville, Western Sydney, and Wollongong – they present a dynamic picture as the regional centres which house a significant segment of Australia’s mid-market businesses. Together, they would contribute in the range of 40 percent of total national business revenue.
“The KPMG report presents 12 regional cities which are growth centres, business enterprise locations and population magnets,” said Naomi Mitchell, National Managing Partner KPMG Enterprise. “They are centres of innovation and productivity which can rival the big capital cities of Brisbane, Melbourne and Sydney. The mid-market businesses in our report cover a wide range of industry sectors including technology, manufacturing, banking and financial services, retail, and health and human services.”
She noted that the 12 cities are attracting people looking for both business and lifestyle opportunities. They offer strong future prospects, despite housing shortage challenges. “As a group, they could be referred to as the ‘engine room of the nation’s economy’ since they employ more than a third of Australians and contribute around 40 percent of total national business revenue. And as the demographic findings show, they are growing fast.”
Terry Rawnsley, KPMG Urban Economist and author of the report said the COVID-19 pandemic ushered in a notable shift in Australia's population growth. “The pandemic steered people away from the major capital cities towards smaller cities. The 12 cities in this report represent upwards of 35 percent of Australia’s economy. In recent years, they have outpaced the national growth trend.”
The report also highlights the record low unemployment rates in the 12 cities during 2023 and a strong shift in distributed population growth.
“People were seeking lifestyle, local amenities, and more affordable housing at the same time as they were uncovering the newfound viability of remote work,” Terry said. “The move from urban to regional centres has certainly injected vitality into these regional city economies, altering the local and residential housing and jobs markets.
“Consequently, there is a pressing need for additional housing supply, improved training and education, and enhanced infrastructure and services to sustain the growing populations,” he said.
Accelerators of Enterprising Cities
Naomi Mitchell said: “We see that technology has transformed the landscape and supported exciting growth in the 12 cities, with digitally enabled Enterprising Cities being connected locally and able to readily expand into national and global markets. What’s more, Australia’s accelerating energy transition and net zero objectives are also providing new opportunities for businesses in regional Australia.”
Although Brisbane, Melbourne and Sydney command the spotlight as the primary business and residential locations for Australia, the move to regional centres had highlighted the benefits of the broader cohort of cities.
Terry Rawnsley added: “As drawcard cities, these locations each offer an individual character and have their own attractions.
“Looking to the future for the ‘Group of 12’, each can stand on its own merits as a hub of commerce and innovation, with strong and dynamic job markets, and diversification of industries. And each continues to attract employment and lifestyle seekers from the east coast capitals of Australia. The challenge is continuing to sustain these growing populations with necessary infrastructure and services.”
For further information
Marjorie Johnston
0407 329 430
mjohnston4@kpmg.com.au
