Three Western Australian regions have made it to the top list for construction of new homes.

The Housing Industry Association (HIA) on Tuesday has listed its so-called “building hotspots” areas where population growth surpassed the national rate and residential homes are worth more than $100 million.

David Endersby of HIA explained the north-east and north-west parts of Wannero are included in the list of top ten hotspots in Australia.

“The big boom that we had in 07/08 really pushed the demand for land up through the roof,” he said.

“There were some very big developers that got on board into the Wanneroo corridors and very successfully developed up a good supply of land.”

Also in the list are Busselton and Port Hedland, both regions of Western Australia.

Mr. Endersby hailed Port Hedland as a strong performer in real estate investments.

"That's the reflection of some concentrated activity to get some housing solutions up in the Pilbara and I think the Barnett Government could also do well to continue to look to the northern regions and housing supply, maybe reduce the reliance on fly in fly out and invest a little more in local infrastructure."

However, the HIA is worried that a low demand for land and labor may slow down the construction of new homes.

Mr. Endersby has predicted that construction in residential homes may drop this year as land supply continues to be a problem and financing is hard to find. He adds that the global financial crisis adds up to the pressing problems the economy is facing right now.