WESTERN Australia’s homebuilders and renovators did it tough during 2008-09 despite rapid national population growth, according to a new report by the Housing Industry Association.
WESTERN Australia’s homebuilders and renovators did it tough during 2008-09 despite rapid national population growth, according to a new report by the Housing Industry Association.
The report, which highlights the nation’s building growth ‘hotspots’, found that just two of the national top 20 hotspots are in WA, with Victoria taking the lead this year as the fastest growing state in terms residential property development.
Wanneroo is the fastest growing region in WA with $163 million in building approvals in its north-east zone and $205 million in the north west in 2009, the only two areas to make the national top 20.
Population growth for both parts of Wanneroo stood at 8.6 per cent for the year.
A combination of statistics was used to determine the national hotspots, including a correlation of annual population growth rates and the dollar value of building approvals, alterations and additions to housing in the areas.
“The 2008-09 financial year was a very challenging one for Australia’s new homebuilders and renovators with a sharp fall in new home starts and a moderation in renovations activity,” HIA chief economist Harley Dale said.
He said the significant growth in population and low interest rates and increased assistance to first homebuyers had created the conditions for a first stage recovery from the downturn.
“Last year there were 58 local area hotspots across Australia’s states and territories and these areas have experienced healthy new home building and renovations activity in 2009-10,” Mr Dale said.
Despite the positive outlook for an upswing, WA’s property market is still struggling to pick up.
Of the five Perth metropolitan areas surveyed in the HIA report – central, east, west, north, south-east and south-west – only the south-east was recorded as having an increase in its value of new housing approvals, alterations and additions.
The south-east metro area (including Armadale, Belmont, Canning, Gosnells, Serpentine-Jarrahdale, South Perth and Victoria Park) recorded an increase of $21.5 million in development value.
The central metro area (including Cambridge, Claremont, Cottesloe, Mosman Park, Nedlands, Peppermint Grove, Perth, Subiaco and Vincent) suffered the biggest drop, recording a $458 million fall from the previous year’s building approvals value of $991 million.
The north metropolitan area’s building approvals dropped by $90 million, east metro by $105 million and the south west metro area by $227 million.
In the Real Estate Institute of WA’s March quarter report, Wanneroo’s north-east median house price was listed as $304,000, a 7.2 per cent decrease from the previous year.
Waneroo’s north west – listed as second on the HIA hotspots list – had a median house price of $407,500 in 2009-10, a 9.8 per cent increase from the previous year’s median price for the area.
Port Hedland ranked highly for regional building growth, recording an $81.8 million increase in regional property development for 2008-09.
