The trend estimate for total dwellings approved rose 1.2% in August and has risen for three months. The seasonally adjusted estimate for total dwellings approved rose 3.0% in August and has risen for two months.
PRIVATE SECTOR HOUSES
The trend estimate for private sector houses approved was flat in August. The seasonally adjusted estimate for private sector houses fell 1.8% in August following a rise of 1.3% in the previous month.
PRIVATE SECTOR DWELLINGS EXCLUDING HOUSES
The trend estimate for private sector dwellings excluding houses rose 3.1% in August and has risen for three months. The seasonally adjusted estimate for private sector dwellings excluding houses rose 9.6% in August and has risen for two months.
VALUE OF BUILDING APPROVED
The trend estimate of the value of total building approved rose 0.8% in August and has risen for two months. The value of residential building rose 1.4% and has risen for four months. The value of non-residential building fell 0.5% and has fallen for nine months. The seasonally adjusted estimate of the value of total building approved rose 0.5% in August following a fall of 10.9% in the previous month. The value of residential building rose 3.0% and has risen for two months. The value of non-residential building fell 4.5% and has fallen for two months.
Approvals for the construction of new homes continue to soar, indicating house building could be a shining light for the economy.
But growing home construction is unlikely to end the current surge in property prices, economists said.
Local councils approved the construction of 16,810 new homes in August, a rise of 3.0 per cent from July, figures from the Australian Bureau of Statistics show.
That smashed economists' expectations of a 0.5 per cent rise.
Approvals for the year to August were up 14.5 per cent.
National Australia Bank senior economist Spiros Papadopoulos said the increase in housing supply was unlikely to ease rising home prices.
"We had a big surge in building approvals towards the end of last year on the private houses side, and we've got ongoing growth in the apartments side during the course of this year," he said.
"We're going to see a lot of construction activity and supply coming on stream but that's going to take some time, because it'll take a while for these houses to be built."
Mr Papadopoulos expects to see home prices growth to continue into 2015.
"And indeed until the Reserve Bank is in a position to raise interest rates again," he said.
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