Melbourne has again dominated the HIA Hotspots Report, with 12 of Australia’s Top 20 building growth areas all located around Victoria’s capital.
HIA today reveals 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.
“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,” says HIA’s Chief Economist, Tim Reardon.
“This is not surprising given the significant investment in infrastructure and the region’s growing professional services sector.”
“According to the HIA Population & Residential Building Hotspots Report 2019, the Rockbank-Mt Cottrell area, located west of Melbourne near Melton, is Australia’s number one Hotspot, with population growth of 59.4% during FY2018 and $224.2 million in building approvals.
Last year’s No.1 Hotspot, Mickleham-Yuroke (north of Melbourne’s Tullamarine airport), has slipped to second place and Pimpama in Queensland’s Gold Coast region 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
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.