The number of Australians relocating to Launceston from capital cities fell by 40 per cent in the three months to June.

Migrations to Launceston, which accounted for about 1 per cent of the national total, were also 43 per cent down on the same quarter last year.

Regional Australia Institute's chief economist Dr Kim Houghton said it was no surprise to see the city's growth waning given it had been among the country's top regional destinations since numbers were first collected in late 2020 and early 2021.

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"The fact that Launceston's been in the top 20 for most quarters shows that it really has been a highly desirable place," he said.

"All through 2021 there was steady growth and that can't go on forever.

"So when we look at 2022 and see the inflows were less than the previous quarter, that's just because it's coming off such a high through last year."

Harcourts Launceston's Jeremy Wilkinson said interstate interest had just begun to pick up following a considerable decline in the winter months.

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"Up until literally the first day of spring that interstate buyer, relocator and investor market had been relatively quiet," he said.

"In the last three days I've sold two to interstaters, and I hadn't really seen many of them lately."

Mr Wilkinson said Launceston's property market was relatively subjective to seasonal factors.

"We see a trend most years, but it's been genuinely much quieter over the last couple of months than it had been for a long time in that interstate relocator [market]."

The Regional Movers Index, which is produced by the RAI and Commonwealth Bank, revealed that regional migration fell by 16.5 per cent during the June quarter.

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