One state has dominated a recently released population and construction hotspot list for the second consecutive year.
Victoria comprised half of the rankings in the Housing Industry Association's (HIA’s) Population and Residential Building Hotspots report, which identifies local areas where population growth exceeds the national rate and the value of residential building work approved is in excess of $100 million.
Victorian areas took out 10 of the 20 suburbs. However, the top ranked suburb was ACT’s Bonner, with $171 million worth of residential building work approved and a population growth rate of 100 per cent, reflecting the relatively new history of the area.
HIA chief economist Dr Harley Dale said that residential building activity is in decline in Victoria and the ACT, but it is heading away from record levels.
"It is no surprise these two regions still feature prominently in the top 20 list,” he said. “WA, meanwhile, is seeing a recovery in new home building this year, and four spots in the top 20 list provide an indication of the potential in the west.”
"In total there are 68 hotspots identified and many more areas where population growth is relatively fast or where the value of approvals for new homes or larger alterations and additions is quite healthy," Dr Dale said. "There is clearly considerable potential for residential construction work in Australia - for a start, six of Australia's eight states and territories feature in the national top 20 hotspots list."
Dr Dale said that with interest rates falling significantly, we would normally be seeing far healthier levels of activity and compelling evidence of a sustainable recovery. However, neither of these outcomes is forthcoming in mid-2013.