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Melbourne dominates HIA Hotspots Report

HIA has revealed Australia’s strongest markets for home building in the 2019 edition of the HIA Population & Residential Building Hotspots Report.

The Report is aimed at finding employment growth areas targeted towards builders and tradies, and identifies hotspots in all states and territories.

“Melbourne has once again dominated this year’s HIA Hotspots Report, with 12 of Australia’s Top 20 building growth areas all located around Victoria’s capital,” said HIA’s Chief Economist, Tim Reardon.

The majority of the growth is in the fringe of Melbourne as the city expands, although inner-city suburbs such as Southbank and Docklands are also enjoying strong growth as they change to accommodate higher density living.

“This is not surprising, given the significant investment in infrastructure and the region’s growing professional services sector.”

According to HIA, the Rockbank-Mount Cottrell area, located west of Melbourne near Melton, is Australia’s number one hotspot, with population growth of 59.4 per cent during 2017/18 and $224.2 million in building approvals.

“Major infrastructure projects, including upgrades to the train station and train lines as well as a new six-lane arterial road connecting the area, are expected to maintain the momentum to keep the area as a hotspot next year.

“Last year’s number one hotspot, Mickleham–Yuroke (north of Melbourne’s Tullamarine airport), has slipped to second place and Pimpama in Queensland’s Gold Coast dropped into third place.

“The remainder of the top 20 hotspots are located in Queensland and NSW, predominantly in areas surrounding the capital cities, Sydney and Brisbane.

“Because the residential building industry is cooling, the number of future hotspots is likely to be more centralised to major capital cities such as Melbourne and Sydney,” concluded Mr Reardon.

The HIA Population & Residential Hotspots 2018 report provides a ranking of Australia’s top 20 hotspots – as well as individual rankings for each of the states and territories. Of the national Top 20:

  • 12 of the Top 20 hotspots are located in Victoria
  • 5 of the country’s top hotspots are in Queensland
  • NSW contains 3 of the national Top 20

Nationally, an area qualifies as a hotspot if at least $150 million worth of residential building work was approved during the 2017/18 financial year and its rate of population growth is faster than the 1.6 per cent national average.

National Top 20 Building and Population Hotspots*

Statistical area Statistical area level 4
State / territoryResidential building
approved, 2017/18 ($'000)
Annual population
growth rate (%)
1Rockbank - Mount Cottrell Melbourne - WestVIC224,22959.4
2Mickleham - YurokeMelbourne - North WestVIC437,35652.2
3PimpamaGold CoastQLD282,41129.5
4Riverstone - Marsden ParkSydney - BlacktownNSW960,56023.2
5Cranbourne EastMelbourne - South EastVIC762,70121.2
6Cobbitty - LeppingtonSydney - South WestNSW775,54019.9
7WollertMelbourne - North EastVIC202,36419.3
8
RipleyIpswichQLD163,96117.6
9Beaconsfield - OfficerMelbourne - South EastVIC263,74413.8
10Eagle Farm - Pinkenba Brisbane - NorthQLD153,02413.8
11Rouse Hill - Beaumont HillsSydney - Baulkham Hills and HawkesburyNSW742,88110.6
12Point Cook - EastMelbourne - WestVIC250,55810.6
13SouthbankMelbourne - InnerVIC681,6249.8
14Springfield Lakes IpswichQLD214,2269.8
15 Truganina Melbourne - WestVIC251,8919.5
16South BrisbaneBrisbane Inner CityQLD213,6309.3
17TarneitMelbourne - WestVIC387,8409.2
18DocklandsMelbourne - InnerVIC273,8969.2
19Cranbourne SouthMelbourne - South EastVIC204,7469.2
20Werribee - WestMelbourne - WestVIC208,7649.0

*SAs with an excess of $150 million in residential building work approved in 2017/18 and with an annual population growth rate in excess of the national rate of 1.6%.

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