New home approvals up Down Under

The construction sector of the Australian property market received a welcome boost during May as new home approvals soared by record levels. Information supplied by the Housing Industry Association detailed a massive 27.3 per cent leap in approvals during the month against a predicted increase of only 5 per cent. Several major apartment developments were given the green light resulting in an increase of more than 58 per cent for multi-unit approvals – 40 per cent higher than a year ago. Economists believe this robust increase in approvals brings hope to overall improvements in the new home building sector of the Australian real estate market following several months of subdued activity. Experts agree that construction workers and associated industries continue to face very challenging conditions in the months ahead. Earlier this week the Reserve Bank of Australia voted to leave rates unchanged at 3.5 per cent.