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Are you living in a home building hotspot?

Are you living in a home building hotspot?

One state comes out top for regions seeing strong population growth and healthy residential building activity.

Victoria dominates Australian states and territories for new residential building activity and population growth "hotspots", according to analysis from the Housing Industry Association.

The HIA has released its latest Population and Residential Building Hotspots Report, which ranks the country's strongest-performing markets for new home building and population growth.

According to the HIA, there were more than 600 housing construction "hotspots" – regions where population growth exceeds the national average and where the value of annual residential building work approved exceeds $100 million – across all Australian states and territories over the 2014-15 financial year.

But two jurisdictions, South Australia and Tasmania, failed to make the Top 20 league table of hotspots as ranked by percentage population growth.

Victoria dominated the rankings with six hotspot regions, followed by WA with five; four in NSW; two each in Queensland and the ACT; and one in the NT.

Canberra's south-west was by far the "hottest" hotspot, with its population more than doubling in FY15 and around $216.5 million worth of new residential building approved.

Victoria's top-performing region, and finishing second nationally, was Cranbourne East in Melbourne’s south-east, where the population increased by 32% and $328.7m of residential building was approved.

Rounding off the national Top 3 was Cobbitty-Leppington in Sydney's south-west. A new railway station opened in Leppington in early 2015 as part of the South West Rail Link extension from Glenfield.

“A total of more than 220,000 new dwellings were commenced last year, so it’s no surprise there was a strong performance among housing hotspots across Australia,” said HIA economist Diwa Hopkins. "The fact that 10 of the Top 20 hotspots are located in NSW and Victoria speaks volumes," she said. "These two states have been the engines of the strong upturn in new home building over the last few years."

Other NSW regions to make the Top 20 included Homebush Bay/Silverwater and Waterloo/Beaconsfield, where more than half a billion dollars' worth of residential building was approved in both areas over FY15.

In Victoria, the western Melbourne region of Truganina made the cut, along with Epping in the city's north as well as the Docklands regions on the CBD fringe.

Hopkins also argued it was "encouraging to see WA still perform strongly this time at the national level, considering the difficulties arising from the natural resources downturn”.

Most of the state's Top 20 hotspots were in Perth's southern suburbs, including the Forrestdale/Harrisdale/Piara Waters region, Baldivis and Bertram/Wellard (West).

Pimpana, north of the Gold Coast, was Queensland's strongest performer. The HIA report predicted that estimated year-on-year approved residential building in Pimpana would increase by almost 150% by the end of FY16.

This article is intended to provide general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice.