WA suburbs rank among nation's most active

Western Australia has featured strongly in a list of residential building hotspots, with three local suburbs featuring in the top five nationwide for activity.

The Housing Industry Association today released its Population and Residential building Hotspots report, which lists the nation’s fastest growing metropolitan and regional areas in 2011-12.

The report defines a hotspot as a local area where population growth exceeds the national average and the value of residential construction approved is more than $100 million.

WA suburbs were represented four times in Australia’s top 20 hotspots, the HIA said, with Forrestdale-Harrisdale ranked second , Yanchep third, and Baldivis coming in fourth.

Ellenbrook was the final WA locale to rank in the top 20, coming in 14^th.

“WA 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,” HIA chief economist Harley Dale said in a statement.

In all, 68 hotspots were identified nationwide by the report.

Victorian suburbs dominated the rankings, with 10 of the national top 20 hotspots in that state.

Dr Dale said there was potential for residential construction work to increase, but a danger that potential would be wasted.

“With interest rates falling significantly we would normally be seeing far healthier levels of activity and compelling evidence of a sustainable recovery, but neither of these outcomes is forthcoming in mid-2013,” he said.

“Policy-makers other than the Reserve Bank have a role to play in ensuring residential construction activity is commensurate with the need to rebalance Australia’s economic growth.

“Success in such policy action would also necessarily be reflected in a more efficient and productive Australian economy.”