The Australian housing market continues to show signs of renaissance according to figures released today by the Australian Bureau of Statistics.
The value of Australian residential construction approved in May rose by 1.7% seasonally adjusted compared to the previous month. New South Wales led the way with a monthly jump of 30.0% followed by Queensland with 15.0%
Dr. Andrew Wilson, Senior Economist at Rider Levett Bucknall commented, "The national impact of the First Home Owners Grant is evident with rises in all states in approvals for new private sector houses, again led by New South Wales with a monthly rise of 12.6%."
New South Wales also performed strongly compared to other states in approvals for new apartments and units.
Although residential activity levels are still well below the peaks of last year - with the exception of Victoria and South Australia - signs of a sustained upswing are emerging with 5 consecutive monthly rises in the number of new private sector houses approved in Australia.
Dr. Wilson continued, "Given the impact of the collapse in housing construction in the UK and USA on their general economic performance, the relative health of Australian house building gives some hope that Australia's recession, official or otherwise, will not produce the same dramatic outcomes in terms of reduced growth and unemployment."
It should be noted that sustained increased housing activity provided the catalyst for the re-emergence of growth in the Australian economy from the recession of 1990-1991.