Victoria booms
Victoria is leading the nation in terms of building activity and population growth, according to the latest HIA-JELD-WEN Population and Residential Building Hotspots Report.
A ‘hotspot’ is defined as a local area where population growth exceeds the national rate and where the value of residential building work approved is in excess of $100 million.
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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.
In contrast, the national population growth rate was just 1.7 per cent in June 2010.
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 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 Mr 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,” he said.
HIA-JELD-WEN Top 20 national building and population hotspots.
1. Whittlesea- North, VIC 2. Wyndham-South, VIC 3. Pimpama-Coomera, QLD 4. Griffin-Mango Hill, QLD 5. Cardinia-Pakenham, VIC 6. Wyndham-West, VIC 7. Melton-East, VIC 8. Casey –Cranbourne, VIC 9. Wyndham-North, VIC 10. Condon-Rasmussen-Bohle Basin QLD 11. Melton Bal, VIC 12. Canada Bay-Concord, NSW 13. Hume-Craigieburn, VIC 14. Kingsholme-Upper Coomera, QLD 15. Wanneroo-North-East, WA 16. Ipswich-East, QLD 17. Armadale, WA 18. Wanneroo-North-West, WA 19. Perth- Remainder WA 20. Blacktown-North, NSW