A new study from property market research firm Propertyology says that population growth due to internal migration has a bigger impact on property markets than new migrants from overseas.

Propertyology head of research Simon Pressley said intrastate and interstate migrants - existing Australians who elect to move from one city to another - were likely to strengthen property prices in the cities they moved to far more than overseas migrants looking to start a new life in Sydney and Melbourne.

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Mr Pressley said with a population of 72,240 people, Shellharbour is Australia's 33rd biggest metropolis, while its $638,250 median house price makes it the 19th most expensive.

Propertyology analysis of Australian Bureau of Statistics (ABS) data has identified the locations where populations are benefiting most from intra and interstate migration.

Mr Pressley said analysis confirms that the locations of choice for Australian residents are satellite cities, or tier-2 cities on the outer-fringe of capital cities, and major regional cities, which are classed as tier-3 cities that play the role as a 'capital city' for larger regions.

According to the analysis, Shellharbour was among the regional areas to welcome healthy numbers of new residents.

"Of the 1204 total population increase in Shellharbour across last financial year, 933 (or 77 per cent) was from internal migration," Mr Pressley said.

"To put this in to context, Sydney lost 27,434 to internal migration.

"It's clear that Shellharbour has an appeal that is attracting people to relocate from other parts of the country."