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Western Australia and Victoria have led the way in a table of the nation’s residential hotspots.
According to the latest Population and Residential Building Hotspots report compiled by the Housing Industry Association (HIA), Victoria dominated the rankings, with the state accounting for 10 of the top 20 nationwide.
Western Australia also had a strong year, with the state represented four times in the top 20 ranking. The ACT punched well above its weight, providing two hotspots in the national top 20. New South Wales also had two hotspots, a welcome development following the state's absence from last year’s list, while Queensland and the Northern Territory each made one contribution to the top 20.
The report defines a “hotspot” as a local area in which population growth exceeds the national rate (which was 1.6 per cent in the year to June 2012) and where the value of residential building work approved was in excess of $100 million.
“Residential building activity is in decline in Victoria and the ACT, but is heading south from record levels. It is no surprise these two regions still feature prominently in the top 20 list,” HIA chief economist Harley Dale said.
“WA, meanwhile, is seeing a recovery in new home building this year and four spots in the top 20 list provide an indication of the potential in the west.”
Bonner in the ACT was Australia’s top building and population hotspot in 2011/2012, with $171 million worth of residential building work approved and a population growth rate of 100 per cent, reflecting the relatively new history of this area.
The second placed hotspot was Forrestdale-Harrisdale-Piara Waters in WA, with $143 million worth of residential building work approved and a population growth rate of 23.5 per cent. Yanchep in WA ranked third where in 2011/2012 the value of residential building work approved was over $102 million and the population growth rate was 18.8 per cent.
The top five list was rounded out by Baldivis in WA, followed by Tarneit in Victoria.
“In total there are 68 hotspots identified and many more areas where population growth is relatively fast or where the value of approvals for new homes or larger alterations and additions are quite healthy,” Mr Dale said.
“There is clearly considerable potential for residential construction work in Australia – for a start, six of Australia’s eight states and territories feature in the national top 20 hotspots list.
“The ‘disconnect’ comes from an insufficient amount of this potential being realised this year in terms of actual residential construction activity.
“With interest rates falling significantly, we would normally be seeing far healthier levels of activity and compelling evidence of a sustainable recovery, but neither of these outcomes are forthcoming in mid-2013.”
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