Melbourne has once again dominated the country’s list of strongest markets for home building, according to Housing Industry Association (HIA) Population & Residential Building Hotspots report.

Twelve of Australia’s top 20 building growth areas are all located in the city. “The majority of the growth is in the fringe of Melbourne as the city expands, although inner city suburbs such as Southbank and Docklands are also enjoying strong growth as they change to accommodate higher-density living,” said HIA Chief Economist Tim Reardon. “This is not surprising given the significant investment in infrastructure and the region’s growing professional services sector.”

The report found that the Rockbank-Mount Cottrell area, located west of Melbourne near Melton, is Australia’s number-one hotspot, with a population growth of 59.4% during 2017-2018 and $224.2 million in building approvals.

“Major infrastructure projects including upgrades to the train station and train lines as well as a new six-lane arterial road connecting the area are expected to maintain the momentum to keep the area as a hotspot next year," Reardon said.

Mickleham-Yuroke (north of Melbourne’s Tullamarine airport) was 2018's number one hotspot, but it has slipped to second place in 2019. Pimpama in Queensland's Gold Coast, meanwhile, dropped into third place.

The remaining top 20 hotspots are located in Queensland and NSW, predominantly in areas surrounding the capital cities, Sydney and Brisbane.

“Because the residential building industry is cooling, the number of future hotspots is likely to be more centralised to major capital cities such as Melbourne and Sydney,” said Reardon.