Thursday July 1, 2010 - New figures show the far north Queensland city of Cairns is the fastest growing region in Australia.

The Australian Bureau of Statistics (ASX: ABS.ax) report shows over 25,000 people moved to Cairns between 2004 and 2009.

The city's population grew by 3.8 per cent, followed by the Gold Coast at 3.3 per cent, the Sunshine Coast and Perth in Western Australia.

James Cook University social demographer, Dr Sue Bandaranaike, says the relaxed lifestyle and affordable housing in Cairns is driving the trend.

"It is not saturated like some of the south-east corner," she said.

"It's got a lot of potential, it is attractive in terms of the tropical lifestyle and affordability.

"Some of the south-east corner areas are really beyond affordability to a lot of people."

But Dr Bandaranaike says with the growth also comes problems.

"Basic infrastructure will have to improve and transport is going to be a big problem," she said.

"Cairns will have to be thinking in the future about providing more schools for children because you'll have a younger population.

"At the same time your population is getting older so you'll need more hospitals."

Cairns population now sits at 147,000.

Source: Yahoo!7