NSW remains a property hotspot

Looking-for-the-next-big-thing-Four-NSW-areas-have-been-labelled-hotspots-_157_6011148_0_14102158_300New South Wales has proven itself a prime location for investing in a home in recent times, with property values soaring and the potential for capital gains ever present. New figures from the Housing Industry Association (HIA) suggest an even brighter future for certain areas of Sydney – and construction is leading the charge.

According the the latest HIA/ACI Population and Residential Building Hotspots Report, New South Wales has experienced a boom in not only new home building, but the rate of population growth. In fact, recent figures from the Australian Bureau of Statistics show that Sydney is set to become the first city in Australia to reach five million people in coming years – and this has interesting consquences for the property market.

This rapid growth is reflected in the HIA report. It compiled the top 20 hotspots from across the country for 2013-2014, based on where population growth expanded faster that the average national rate, as well as where the value of residential building work approved surpassed $100 million.

Four of the top 20 areas were located in and around the Sydney region. According to the report, the Cobbitty – Leppington region was placed highest of the state’s contingent, posting $210,295,000 worth of approved building work over the year, combined with a surging population rate of 18.5 per cent. Parklea – Kellyville Ridge, Homebush Bay – Silverwater, and Waterloo – Beaconsfield rounded out the best-performing areas for NSW.

The state also shines when it comes to predicted performance over the next year. Excluding Parklea – Kellyville Ridge, each of these areas is expected to see an impressive level of new home building in coming months. In fact, Waterloo – Beaconsfield is forecast to post an astounding 375 per cent increase in the value of building approvals in 2014-2015.

With a strong pipeline of new homes forecast for the coming months and population growth gathering pace, buyers and investors will doubt be watching how property prices respond.

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