HIA reveals state’s top building hotspots as population growth continues to drive new housing
This industry association says builders and tradies should be encouraged by the latest report that shows Queensland residential construction is growing, despite activity slowing in other states
Redlands Coast
Don't miss out on the headlines from Redlands Coast. Followed categories will be added to My News.
The Redlands Coast has made the list of Queensland’s 2019 building hotspots, with Thornlands being named as one of the most active suburbs for residential construction.
The Housing Industry Association’s Population and Residential Building Hotspots 2019 Report revealed the suburb had $121 million worth of residential property approved in the previous financial year.
With a population growth of 4.4 per cent, it was ranked 16th in the state.
In February, buyers showed overwhelming demand for the latest blocks available at Kinross Rd, Thornlands, with developer Ausbuild revealing 34 of the 62 lots had been put on hold before the official release.
A hotspot is defined as a local area where population growth exceeds the national rate (which was 1.6 per cent in the year to June 2018) and where the value of residential building work approved is more than $100 million.
Thornlands was the only Redlands Coast suburb to make the Queensland list, which was topped by Pimpama on the Gold Coast with $282 million in approvals and a whopping 29.5 per cent growth rate.
Rounding out the state’s top 5 were Ripley ($164 million in approvals and 17.6 per cent growth), Eagle Farm/Pinkenba ($153m, 13.8%), Newstead/Bowen Hills ($119.7m, 10.8%) and Springfield Lakes ($214m, 9.8%).
50C A DAY FOR 6 MONTHS: SUBSCRIBE TO REDLANDS COMMUNITY NEWS & THE COURIER MAIL
HIA Queensland executive director Michael Roberts said the state was well represented across the country, taking out five places in the national top 20.
“The builders and tradies should be encouraged by the latest report that shows the Queensland industry is growing, despite other states’ activity slowing,” Mr Roberts said.
“The Gold Coast’s Pimpama area has remained the state’s number one hotspot for the fourth year running. Nationally, it has slipped to third place.
“Pleasingly, despite all the hype around the slowdown in building activity, eight locations currently listed are predicted to remain a hotspot for the next 12 months, confirming there is much to be positive about in the residential construction activity space in southeast Queensland.”
The report noted that nationally the residential building industry cooled rapidly toward the end of 2018 but, despite the slowdown, still saw more than 200,000 new homes started for a record-breaking fifth year.
“This record is not likely to be repeated in 2019 as the work in the building pipeline is rapidly completed,” the report stated.
“The unexpected factor that emerged in 2018 was the credit squeeze created as banks reduced the amount of money they are prepared to lend each customer. This occurred as the market had already started to cool as part of a more natural cycle, as the pent-up demand for new housing had been met.
“ABS building approval figures show that dwelling approvals peaked at the end of 2017 and had cooled modestly through 2018.
“By January 2019 they had fallen by 37.5 per cent from the peak of 22,923 in November 2017.
“This downturn is particularly evident in multi-unit approvals which are now 48.5 per cent lower in the same three-month period to January 2019, compared with the same time in the previous year.”
FOLLOW REDLANDS COMMUNITY NEWS
Builder launches community engagement for new housing estate
Council signs land deal for community
The report also showed that approvals for detached houses had remained relatively consistent in comparison with the drop in multi-units.
Detached house approvals declined by 7.7 per cent in January 2019, compared with the previous year.
“The fall in multi-unit approvals at the end of 2018 is not a sign of dire outcomes as there still remains a large volume of multi-unit work that has been approved but not yet commenced,” the report stated.
“This pipeline of work should result in a large number of multi-unit completions over the next two years.
“The volume of multi-unit approvals also remains elevated compared to historical levels.
“There were more than 92,000 apartments approved nationally in 2018, compared to an annual average this century of just 69,000.”
The HIA reported that Queensland’s population growth rate was 1.7 per cent during 2017/18, placing the state third behind Victoria and the ACT.
“Queensland’s population rose by 83,587 over the 12 months, with overseas migration (+28,668) and natural increase (+30,221) accounting for almost the same portion of the increase,” it reported.
A net inflow of 24,698 people from other parts of Australia was likely dominated by retirees downsizing and moving from interstate.
Queensland suburbs expected to remain on next year’s report are: Mermaid Beach, Landsborough, Ripley, Springfield Lakes and Caloundra West, with Thornlands among those dropping off this list.
QUEENSLAND’S TOP 20 HOTSPOTS 2019
1. Pimpama: $282 million in approvals, 29.5 per cent growth
2. Ripley: $164m, 17.6%
3. Eagle Farm/Pinkenba: $153m, 13.8%
4. Newstead/Bowen Hills: $119.7m, 10.8%
5. Springfield Lakes: $214m, 9.8%
6. South Brisbane: $213.6m, 9.3%
7. Rochedale/Burbank: $167.8m, 8.9%
8. Jimboomba: $139m, 8.7%
9. Murrumba Downs/Griffin: $122m, 8.4%
10. Caloundra West: $197m, 7.5%
11. North Lakes/Mango Hill: $200.6m, 7.2%
12. Fortitude Valley: $213.8m, 7.1%
13. Redbank Plains: $104.8m, 5.7%
14. Hope Island: $185m, 5.4%
15. Pallara/Willawong: $108m, 5.2%
16. Thornlands: $121m, 4.4%
17. Upper Coomera/Willow Vale: $113.5m, 4.1%
18. Landsborough: $108m, 4%
19. Kangaroo Point: $120m, 3.9%
20. Robina: $137m, 3.3%
Source: HIA Population and Residential Building Hotspots 2019 Report.
Bystanders’ actions praised, as crash victim identified as young dad
Friends of a 27-year-old man who died in a single-vehicle crash on Brisbane’s bayside have told of the admirable actions of two bystanders, who comforted him at the scene before paramedics arrived.
Mayor’s ultimatum: Pay more or lose services despite $211m net result
A southside mayor has triggered calls to abolish elected councillors after giving ratepayers a stark choice: pay more or lose services, despite his council forecasting a $211 million net result.