Buyers are spending larger amounts getting into the property market, with new housing expenditure rising 12.5 per cent in the June quarter of 2010.
According to the Housing Industry Association (HIA), this figure was 8.3 per cent higher than 12 months ago.
HIA senior economist Andrew Harvey said that the increased expenditure was the consequence of the government grants in 2009 for new homes.
However, he said the figure may plateau over the medium term.
"You need to remember that the housing contribution to June quarter Gross Domestic Product (GDP) reflects the lagged effects of good approvals and lending finance figures from the latter stages of 2009.
"This situation has changed, with leading indicators for housing activity now looking considerably less rosy," said Mr Harvey.
"Without the government stimulus of the first home buyers boost and the social housing initiative we have seen a sustained weakness in approvals and finance, signalling that new housing construction will at best be flat over the medium term," he said.
GDP grew by 1.2 per cent in the June quarter to be 3.3 per cent up on 12 months ago.