Australia’s most active and growing markets for housing construction have been unveiled.

In its latest Population and Residential Building Hotspots report, the Housing Industry Association said the ACT – South West was the hottest market for residential building and construction during 2013/14 with population growth of 134.4 per cent and a dollar value of residential building approved of just over $185 million.

Six of the Top 20 ‘hotspots’ were in Western Australia, followed by five in Victoria, four in New South Wales and three in the Australian Capital Territory. According to ABS, these hotspots are statistical areas which meet the dual criteria throughout 2013/14 of recording both a total value of residential building approvals of greater than $100 million (less in smaller states) and a population growth rate which is greater than the national average.

As a sign of the shift taking place within the home building recovery, however, a further Building Momentum shortlist identifies a number of regions the HIA believes offer strong prospects of ongoing housing construction growth in 2014/15 and 2015/16. That list is dominated by New South Wales, with Homebush Bay – Silverwater, Waterloo –Beaconsfield and Cobbitty – Leppington taking out the top three spots.

To make the latter list, a statistical area must have had population growth exceeding national averages for three years running and also have growth in its anticipated dollar value of new home building approvals in 2014/15.

Victoria and Western Australia also featured strongly on this list, while the ACT – where building activity has slowed considerably – does not feature on this shortlist despite having three statistical areas making the 2013/14 hotspots top 20 list.

The new report comes amid ongoing signs of continued momentum in the nation’s boom in new home construction. In March, the seasonally adjusted value of new dwelling units approved for construction rose by 2.8 per cent to come in at 19,333 – a higher level than for any previous month in more than 30 years of ABS records.

Such momentum will be further bolstered by the latest easing in monetary policy, which has seen official interest rates drop to record lows.

HIA economist Diwa Hopkins believes 2015 will be another strong year in residential construction.

“We are in for another strong year of new home building activity, although the relatively even growth balances across detached and multi-unit housing last year will be replaced by this further lift being more concentrated in the medium/high density market,” Hopkins said.

Below is an outline of significant growth markets within each state:

New South Wales

Although population growth has eased slightly, it remains at a healthy 1.5 per cent per annum and a significant undersupply of dwellings appears to indicate that residential construction activity will remain at elevated levels in New South Wales for some time.

Top three hotspots (2013/14):

  • Cobbitty – Leppington
  • Parklea – Kellyville Ridge
  • Homebush Bay _ Silverwater

Building momentum shortlist (SAs with in excess of $100 million in residential building work approved in 2013/14 and with an annual population growth rate in excess of the national rate of 1.6 percent):

  • Homebush Bay – Silverwater
  • Waterloo – Beaconsfield
  • Cobbitty – Leppington


Strong population growth in Victoria exceeds national averages amid high levels of net overseas migration, and there are continued strong showings in building approval data.

Top three hotspots (2013/14):

  • Cranbourne East
  • Truganina
  • Docklands

Building momentum shortlist (top three):

  • Epping
  • Docklands
  • Truganina


Despite an easing in overseas and interstate migration, Queensland is still experiencing moderate levels of population growth and currently undergoing a home building recovery brought about by significant levels of pent-up demand following several years of low building activity.

Top three hotspots (2013/14):

  • North Lakes – Mango Hill
  • Deeragun
  • Paddington – Milton

Building momentum shortlist (two only):

  • North Lakes- Mango Hill
  • Upper Coomera – Willow Vale

South Australia

A population growth rate second only to Tasmania in modesty means any impetus for sustained housing construction recovery in South Australia is limited, though building activity has come off the horrible lows of recent years.

Top three hotspots (2013/14):

  • Munno Para West – Angle Vale
  • Seaford
  • Mount Barker

Building Momentum shortlist (two only):

  • Adelaide
  • Northgate – Oakden – Gilles Plains

Western Australia

Although WA had the highest rate of population growth of any state in 2013/14, there is strong suspicion this will slow (and with it building activity) going forward as the mining boom fades.

Top three hotspots (2013/14):

  • Forrestdale – Harrisdale – Piara Waters
  • Yanchep
  • Baldivis

Building Momentum Shortlist:

  • Perth City
  • Mandurah – North
  • Ellenbrook


Although building activity has picked up recently as home buyers rushed to take advantage of generous incentives, the weakest rate of population growth throughout the entire country promotes scepticism about how long this can last.

Top three hotspots (2013/14):

  • Latrobe
  • Port Sorell
  • Legana

Building momentum shortlist:

  • Port Sorell
  • Legana
  • Latrobe

Northern Territory

Subdued population growth indicates any forward momentum in NT markets will most likely be modest at best.

Top three hotspots (2013/14)

  • Palmerston – South
  • Rosebery – Bellamack
  • Lyons (NT)

Building momentum shortlist (1 only)

  • Darwin City

Australian Capital Territory

Lower levels of public service employment are seeing a slowing of population growth and housing market momentum.

Top three hotspots (2013/14):

  • Gungahlin – West
  • ACT – South West
  • Grace