Residential building approvals have risen for the second consecutive month highlighting a strengthening economy and the increased demand for property.
According to the Australian Bureau of Statistics (ABS) seasonally adjusted building approvals rose 7.7 per cent in July on the back of a 9.9 per cent rise in June.
Despite the significant rise in building approvals, overall approvals were still 3.9 per cent lower than one year ago.
New South Wales recorded the biggest leap in approvals, rising 19.0 per cent in July.
House approvals for the country were also up, rising 1.5 per cent while multi-unit approvals soared 35.3 per cent.
“It is very encouraging to see a strong rise in multi-unit approvals for the second consecutive month. The multi-unit sector has been weak for a very long time,” Housing Industry Association chief economist Harley Dale said.
“It will be important to see further signs in coming months of a broadening home-building recovery encompassing detached and non-detached dwellings, first time and trade-up buyers, investors and social housing.”
In the minutes of the August 2009 Monetary Policy Meeting of Reserve Bank Board, the Bank said that home building activity would pick up in the second half , thanks to low rates and government incentives.