HIA has revealed Australia’s strongest markets for home building in their HIA Population & Residential Building Hotspots report for 2018.
“Melbourne has dominated this year’s report, with 12 of Australia’s top 20 building growth areas all located around Victoria’s capital,” said HIA’s Senior Economist, Shane Garrett.
“According to the HIA Population & Residential Building Hotspots Report 2018, the Mickleham-Yuroke area of Melbourne is Australia’s number one hotspot, with population growth of 35.3 per cent during 2016/17, and $222.9 million in building approvals.
“With a large volume of work still to be commenced, no downturn evident in approvals, and population growth still exceeding two per cent, Melbourne and its surrounding areas are likely to produce many hotspots for building activity going into 2019.
“Pimpana on the Gold Coast slipped to second place this year with Melbourne’s Cranbourne East area in third position nationally.
“The remarkable performance of Melbourne in this year’s report demonstrates how well the circle of job creation, population growth and new home building can boost an economy.
“A number of Sydney’s Western and South Western suburbs are also on the move. From Leppington to Parramatta and Blacktown, the large pipeline of new housing will attract significant population growth,” said Mr Garrett.
Out of the report, 12 hotspots are located in Victoria, four are in New South Wales and the final four are in Queensland.
“In Queensland, the South Eastern corner is the focus of activity. Population growth in the South East has accelerated over the past year, indicating that Queensland is starting to see solid employment gains.
“Coomera is also a regular on the hotspots list, joined by South Brisbane where the apartment boom has resulted in significant approvals and population growth.
“Even in those parts of the country that are experiencing challenging economic conditions, there are some bright spots on the local housing map. We have identified Hotspots in all states and territories which are underpinned by robust levels of new home building and increases in population,” said Mr Garrett.
Nationally, an area qualifies as a hotspot if at least $150 million worth of residential building work was approved during the 2016/17 financial year, and its rate of population growth is faster than the national average.