SYDNEY'S population growth is lagging behind that of Brisbane and Melbourne, with fresh evidence people are abandoning the nation's largest city to escape inflated property prices and reduced job opportunities. The figures are further evidence the NSW economy has slowed, with Melbourne attracting a net 41,300 people last year, a growth rate of 1.1 per cent, compared with Sydney's 29,800, or 0.7 per cent.
Brisbane remains the fastest-growing city, with a growth rate of 1.9 per cent, while coastal regions continued to lure those in search of a sea change.
Bob Birrell, director of Monash University's Centre for Population and Urban Research, blamed Sydney's population slowdown on high housing prices and a reduced number of new jobs.
"Not withstanding the fact it's maintaining its high overseas migration intake, Sydney is now losing substantial numbers of people," Dr Birrell said.
"There are two possibilities. One is that finally the housing price situation is driving younger people out. There is also an attraction for older people to cash in and move. The other aspect is that Sydney is no longer the focal point for job creation."
Dean of Built Environment at the University of NSW Peter Murphy said NSW was paying the price for relying on the private sector to generate economic development.
"For 20 years, Sydney has been getting all the banks, regional headquarters, tourists and international publicity," Professor Murphy said. "Unlike states such as Queensland and Victoria, the NSW Government had no economic development strategy and no effective interest in promoting economic development.
"The reason is it's been assumed that since market forces have favoured Sydney for so long, the state Government didn't need to do anything."
The lower growth rate came despite 37,000 migrants arriving in NSW during 2004-05.
However, 26,000 people left NSW for another state during the same period.
ABS statistician Andrew Howe said Melbourne had been growing faster than Sydney since 2001.
The figures show southeast Queensland continues to boom, growing by 53,300 people, or more than 1000 a week.
In the regional centres, coastal areas recorded strong growth, particularly Mandurah and Busselton, south of Perth, which rose by 3400 and 1700 respectively. Cairns grew by 3000 people and Caloundra by 2800.
Management consultant Janet Martin is among those making the shift south. Having lived in Sydney for 10 years, Ms Martin decided six months ago to move from Annandale in Sydney's inner west to South Yarra in Melbourne's inner east in search of a more vibrant culture and cheaper housing.
Ms Martin, 34, said the increased proportion of single men in the city had proved an added bonus. She had spent the last year and a half in Sydney single, but found a boyfriend within two months of moving to Melbourne.
"All I know is now I have a boyfriend who's my age, who has two cats and wants to make babies," Ms Martin said.
Australian Bureau of Statistics figures released yesterday show Melbourne and Brisbane outstripped Sydney's population growth rate last financial year.
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