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The latest figures reveal the number of new building approvals for November was up by nearly 12 per cent.
The figures from the Australian Bureau of Statistics showed the number of approvals was at its highest level since March last year.
The increase was due to a surge in approvals in New South Wales, Housing Industry Association economist Tom Devitt said.
“The improvement in approvals in November is consistent with other leading indicators which show that the market started to stabilise around April 2019,” Mr Devitt said.
“The strong result in New South Wales is largely due to strength in approvals for apartments. South Australia, Queensland and the ACT also saw improvements in building approvals in the month of November.
“These improvements are a most welcome reprieve from the declines that began in late 2017 and reinforce the positive developments we have already seen in lending finance and new home sales since April 2019.”
As a result of an active recovery in house prices in the second half of last year, it should bring investors back to the market as well as support increased activity in the economy, he said.
The introduction of the government’s First Home Loan Deposit Scheme, which began at the start of the year, should also support broader activity, “assisting more Australians [to] take their first steps towards home ownership”, Mr Devitt said.
“The market nonetheless remains well down from previous years, and concerns relating to overly tight credit conditions persist in weighing on the market.”
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