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Money Melbourne has replaced Sydney as the epicentre of Australia's housing construction boom

00:57  13 june  2018
00:57  13 june  2018 Source:   businessinsider.com.au

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But Australia ’ s latest housing boom may soon be over, so it’s time to ask: what happens if house prices fall? House price growth is slowing in Melbourne and Sydney , the two epicentres of the boom .

Key points. > Australian housing remains overvalued and this has gone hand in hand with high household debt. > The hot Sydney and Melbourne property markets are showing signs of cooling as APRA measures bite. current construction boom to continue for several years.

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Melbourne has replaced Sydney as the epicentre of Australia's housing construction boom, according to new research released by Australia's Housing Industry (HIA) today.

“Melbourne has dominated this year’s HIA Hotspots Report, with 12 of Australia’s Top 20 building growth areas all located around Victoria’s capital,” said Shane Garrett, HIA’s Senior Economist.

A "hotspot" is deemed to be a region where at least $150 million worth of residential building work was approved during the 2016/17 financial year, and whose rate of population growth is faster than the national average of 1.6%.

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How to find the next booming suburb? dwellings in Sydney and Melbourne have experienced a capital growth of 9 do not expect another capital Patchy The next routine forecast will be issued at Australia ’ s apartment boom reaches record high is sufficient to see construction continue apace for

Auction sign on house replaced with sold sign The bubble argument boils down to whether you think prices in Sydney and Melbourne have ballooned so high they risk a catastrophic price correction. Combined, the movements point to flat price growth in Australia ' s GREG WOOD/AFP/Getty Images.

As seen in the list below, all of the top 20 hotspots last financial year were located in Australia's eastern states -- Victoria, New South Wales and Queensland.

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“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," said Garrett.

Those themes were also evident in Sydney and southeast Queensland in the latest report.

Margin pressures are intensifying across Australia's construction sector

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House price growth By median value, house prices rose by 1. Auction sign on house replaced with sold sign The bubble argument boils down to whether you think prices in Sydney and Melbourne have ballooned so high they risk a catastrophic price correction. Australia Post' s Ahmed Fahour.

The last 12 months has seen Australian construction work slowing sharply, but According to BIS Shrapnel, the subsidence of Australia ’ s mining construction boom is expected to drive a 20% decline in and even though interest rates have fallen and housing stock shortages still exist in Sydney

“A number of Sydney’s Western and South Western suburbs are also on the move. From Leppington to Parramatta and Blacktown, the large pipeline of new housing will attract significant population growth," Garrett said.

“In Queensland, the South Eastern corner is the focus of activity. Population growth in the South East has accelerated over the past year, indicating that Queensland is starting to see solid employment gains."

Looking ahead, the HIA believes that with solid employment and population growth, Victoria will likely dominate the hotspots list for the current financial year and beyond.

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

Melbourne's population grew by 125,400 in the 12 months to June 2017, largely reflecting an 80,000 increase in net overseas migration.

Sydney and Brisbane also recorded solid growth of 101,600 and 48,000 respectively over the same period.

Comment: Australians’ wealth is tied up in housing. That’s not a good thing. .
A new report shows Australian wealth has skyrocketed, but that's not as great as it sounds. What happens when all this money is tied up in housing?This data comes from New World Wealth and shows up in a new report from AFRAsia, a bank based in Mauritius.

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