With its sparkling harbor, enticing beaches and enviable climate, Sydney is regularly rated among the world’s top 10 most desirable cities. However, from today the state government of New South Wales will pay residents A$7,000 (US$7,500) to leave.
In one of the clearest signs of official alarm at the growth rate of a city that is already home to a fifth of Australia’s population, the money will be made available to individuals or families who sell up and buy in the country.
The plan is also aimed at boosting rural areas that suffered economically and socially in last year’s devastating drought.
“Regional NSW [New South Wales] is a great place to live, work and raise a family — these grants will provide extra assistance,” NSW Deputy Premier Andrew Stoner said.
The only catch is that the rural home must be worth less than about US$644,000.
With 4.5 million residents at present, Sydney is predicted to grow by 40 percent over the next 30 years, putting unprecedented pressure on infrastructure and housing. It is already the most expensive Australian city to live in.
The median house price is US$710,000 when the average annual wage is US$59,000. Renting is not much better, with vacancy rates at just 1 percent and rents rising.
In the past decade, a large part of the population growth has been a result of skilled migration. Current estimates predict Australia’s population will increase from 22.5 million now to 36 million by 2050 — a jump of more than 60 percent.
Australian Prime Minister Julia Gillard campaigned in the election in August last year on a “sustainable population” platform, pitching to voters in key marginal electorates on city outskirts across the country where anger over population pressures was building.
Penrith, a blue-collar heartland 48km west of Sydney, is one such electorate. In Penrith, summer days reach 40°C and winter nights often fall below freezing. The commute into town is a two-hour grind in peak traffic, but a four-bedroom brick house still costs up to US$530,000.
“It’s a lot of money, but there are more people than houses,” Penrith Councilor Greg Davies said. “This puts huge pressure on infrastructure, but it’s a choice of paying a million dollars in the city or getting a bigger place out here for less.”
Country areas are crying out for people. The national government has encouraged new migrants to settle in regional areas. Last year, it also offered city doctors who move to regional or remote areas up to US$128,000 in relocation payments. Other state governments have also offered incentives to movers.
However, getting Sydneysiders away from their beloved beaches may take more than A$7,000. One estimate suggests the grant would barely cover removal costs.
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