Victoria is the lead state for building and residential hotspots in Australia, according to a new survey which identifies the country’s building ‘hotspots’.
The HIA—JELD-WEN Population and Residential Building Hotspots report provides a snapshot of Australia’s fastest growing metropolitan and regional areas in the 2009/10 financial year.
A hotspot is defined as a local area where population growth exceeds the national rate (which was 1.7 per cent in the year to June 2010) and where the value of residential building work approved is in excess of $100 million.
Victoria registered nine of the top twenty national Hotspots in 2009/10, while Queensland had five, Western Australia had four, and New South Wales had two.
Whittlesea North in Victoria was Australia’s top building and population Hotspot in 2009/10 with over $660 million worth of residential building work approved and a population growth rate of 21.8 per cent.
The second-placed Hotspot was Wyndham South where in 2009/10 the value of residential building work approved hit almost $478 million and the population growth rate was 16.2 per cent.
“Victoria, in particular, has benefitted from the temporary boost to population growth in recent years which was driven primarily by historically high net overseas migration. Relatively affordable new housing was also a significant contributor to Victoria dominating the top 20 national Hotspot list,” said HIA chief economist, Dr Harley Dale.
The third-placed Hotspot was Pimpama-Coomera and the fourth placed Hotspot was Griffin-Mango Hill, both in Queensland. Cardinia — Pakenham in Victoria rounded out the top five Hotspots.
“The 2009/10 financial year saw all states and territories turn in a strong performance for residential building activity due to stimulus in the form of record low interest rates and a tripling of the first home owner grant for new dwellings,” said Dale.
“Unfortunately with the evaporation of this stimulus came a swift and decisive slowdown - off the back of the hurried return of mortgage lending rates to above-average levels and slow progress in reducing supply side obstacles.
“On the upside, with softer housing conditions and less pressure on trades, now is a good time for people to contemplate building or renovating a home,” added Harley Dale.
Below is a list of the Top 20 National Building and Population Hotspots, compiled by the HIA