Building Boom Times for Melbourne Suburbs

Melbourne’s suburbs are seeing a building boom with the city dominating the rankings of the nation’s biggest growth areas.

Twelve of the 20 areas with the fastest population growth rate that also saw residential building work of more than $150 million approved during financial 2017 were in Melbourne, as the city’s population soared amid a strong economy.

The top building hotspot in the country was the Mickleham-Yuroke region in Melbourne’s outer northwest, where about $222.9m worth of residential building work got the green light.

The area’s population swelled by 35.3 per cent over the same period, according to the Housing Industry Association’s Population and Residential Building Hotspots report.

Other Melbourne fringe suburbs are also seeing new houses springing up, with Cranbourne East winning $638.6m of new building work and seeing a 27.4 per cent jump in residents, and Wollert recording $173.2m of new work and a 20.8 per cent rise.

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HIA senior economist Shane Garrett tipped the city to keep booming into the coming year.

“With a large volume of work still to be commenced, no downturn evident in approvals, and population growth still exceeding 2 per cent, Melbourne and its surrounding areas are likely to produce many hot spots for building activity going into 2019,” Mr Garrett said.

“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.”

The Gold Coast also drew new residents, with Pimpama taking the second spot on the list after winning $352m in building work approved and a 30.8 per cent population increase.

Following the infrastructure investment, such as new light rail for the recent Commonwealth Games, Mr Garrett said the southeastern corner of Queensland was the focus of new building activity in the state.

“Population growth in the southeast has accelerated over the past year, indicating that Queensland is starting to see solid employment gains,” Mr Garrett said.

NSW recorded only four spots on the list but Sydney’s outer western growth corridors were high in the rankings.

The Cobbitty-Leppington region ranked fourth with $610.4m of building work approved and a 21.9 per cent jump in population, while Riverstone-Marsden Park was fifth with $736.2m in building approved and the number of residents increasing 21.1 per cent.

“From Leppington to Parramatta and Blacktown, the large pipeline of new housing will attract significant population growth,” Mr Garrett said.

Source: The Australian