I believe it shouldn't. That said, I know four successful JMP applicants personally (including me) and the three rural applicants got Armidale, the one non-rural applicant got Newcastle. All four preferenced Newcastle first.
Obviously that is just an anecdote that likely means nothing, but is interesting nonetheless! Might be best to look at collated entry data from last year to expand the sample.
Yes I will have to look into it. I am curious as to how they decide the location of successful candidates, whether it is to do with ranking etc.