Melbourne dominating building and population growth

Melbourne dominating building and population growth

Melbourne had the strongest market for building and population growth throughout 2018, according to the latest Housing Industry Association (HIA) Population & Residential Building Hotspots report.

What is a ‘Hotspot’?

A ‘Hotspot’ is an area with at least $150 million worth of residential building approved during the 2016/17 financial year, and a rate of population growth that is faster than the national average.

National Top 20 Building and Population Hotspots

Statistical Area

 

State / Territory

Residential Building Approved, 2016/17 ($’000)

Annual Population Growth Rate (%)

1. Mickleham – Yuroke

VIC

222,872

35.3

2. Pimpama

QLD

352,035

30.8

3. Cranbourne East

VIC

638,571

27.4

4. Cobbitty – Leppington

NSW

610,382

21.9

5. Riverstone – Marsden Park

NSW

736,224

21.1

6. Wollert

VIC

173,239

20.8

7. Docklands

VIC

199,734

14.7

8. Beaconsfield – Officer

VIC

256,005

13.4

9. Point Cook – East

VIC

169,300

12.8

10. Truganina

VIC

202,036

11.9

11. Melbourne

VIC

622,251

11.2

12. Coomera

QLD

173,540

10.3

13. Cranbourne West

VIC

171,594

9.2

14. Melton South

VIC

161,037

9.1

15. Tarneit

VIC

299,838

9.0

16. South Brisbane

QLD

154,000

8.8

17. Springfield Lakes

QLD

184,943

8.7

18. Arncliffe – Bardwell Valley

NSW

513,026

8.6

19. Southbank

VIC

417,688

8.6

20. Homebush Bay – Silverwater

NSW

358,252

8.0

Source: HIA.com.au

This top 20 list of building growth areas shows that:

  • 12 of the Top 20 Hotspots are located in Victoria;
  • NSW contains 4 of the national Top 20;
  • Four of the country’s top Hotspots are in Queensland.

HIA’s Senior Economist, Shane Garrett stated that Melbourne “dominated this year’s HIA Hotspots Report, with 12 of Australia’s Top 20 building growth areas all located around Victoria’s capital”.

“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 2 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 Hotspots 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. 

“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,” concluded Shane Garrett.

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