A HOUSING report shows the ACT is punching above its weight when it comes to residential development and population growth.
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The Housing Industry Association Population and Residential Building Hotspots report indicates the region rates the third highest number of ''hot spots'' of states and territories in a weighted comparison.
Hot spots are areas where the annual population growth rate is above the national average and the value of residential building work is more than a benchmark set on a jurisdiction.
NSW, Victoria and Western Australia had to record values in excess of $100 million, Queensland and South Australia $50 million, the ACT and the Northern Territory $20 million and Tasmania $10 million.
In 2011-12 the ACT recorded 12 hot spots, down from 14 in the previous 12 months.
Victoria recorded 17, Queensland 13, Western Australia seven, South Australia three, Tasmania two and Northern Territory two.
HIA ACT/Southern NSW acting executive director Adrian Langford said the ACT had a strong track record for development compared with the rest of the country.
But he said the next financial year would probably return less positive results for the sector, particularly due to the lack of confidence since the announcement of the federal election.
The HIA has welcomed the ACT government's initiatives in the recent budget to stimulate the building industry.
From September the First Home Owner Grant will rise from $7000 to $12,500 and will only be applicable for buyers of new homes or those they will ''substantially renovate''.
According to the report issued during the week, the booming north filled the top six positions on the ACT's list. These suburbs were Crace, Bonner, Forde, Harrison, Casey and Franklin.
But the established areas of Belconnen, Macgregor, Civic, Kingston-Barton, Bruce and Braddon also recorded more than $20 million worth of building approvals and grew populations by more than 1.6 per cent.
Kambah rated as the suburb with the highest value of approvals for alterations and additions in the ACT, recording $6.1 million worth of approved work during the 2011-12 financial year.
This was followed by Ainslie ($5.4 million) and then O'Connor ($4.9 million).
The report also showed that the ACT was the only jurisdiction other than the Northern Territory to record the bulk of its population growth (6907) from a natural increase of 3439.
''The ACT has seen something of a baby boom over most of the past decade, where most years during this period has seen an increased number of persons added to the population due to natural increase,'' the report said.
In 2011-12 net overseas immigration accounted for 2772 people and interstate immigration for 695 people.
The ACT also had two areas make the nation's top 20 hot spot list - Bonner was first on the list and Belconnen eighth.
Bonner recorded more than $170 million of residential building approvals and a population growth rate of 99.7 per cent and Belconnen had $122 million in approvals and an annual population growth rate of 12.3 per cent.