- Melbourne has replaced Sydney as the epicentre of Australia’s housing construction boom, according to new research.
- 12 of Australia’s top 20 housing construction “hotspots” were in Melbourne last financial year. The remaining eight were located in Sydney and Southeast Queensland.
- A “hotspot” is deemed to be a region where at least $150 million worth of residential building work was approved over a 12-month period, and whose rate of population growth is faster than the national average of 1.6%.
Melbourne has replaced Sydney as the epicentre of Australia’s housing construction boom, according to new research released by Australia’s Housing Industry (HIA) today.
“Melbourne has dominated this year’s HIA Hotspots Report, with 12 of Australia’s Top 20 building growth areas all located around Victoria’s capital,” said Shane Garrett, HIA’s Senior Economist.
A “hotspot” is deemed to be a region where at least $150 million worth of residential building work was approved during the 2016/17 financial year, and whose rate of population growth is faster than the national average of 1.6%.
As seen in the list below, all of the top 20 hotspots last financial year were located in Australia’s eastern states — Victoria, New South Wales and Queensland.
“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,” said Garrett.
Those themes were also evident in Sydney and southeast Queensland in the latest report.
“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,” Garrett said.
“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.”
Looking ahead, the HIA believes that with solid employment and population growth, Victoria will likely dominate the hotspots list for the current financial year and beyond.
“With a large volume of work still to be commenced, no downturn evident in approvals, and population growth still exceeding 2%, Melbourne and its surrounding areas are likely to produce many Hotspots for building activity going into 2019,” Garrett said.
Melbourne’s population grew by 125,400 in the 12 months to June 2017, largely reflecting an 80,000 increase in net overseas migration.
Sydney and Brisbane also recorded solid growth of 101,600 and 48,000 respectively over the same period.