Building picking up

BUILDING approvals have bounced on the back of a spike in nods for apartment blocks, official figures show, although economists maintain housing construction is in decline.

Approvals for new homes jumped 10.9 per cent to 18,453 in June, the Australian Bureau of Statistics said, well above the 1 per cent increase expected.

Approvals for “other dwellings”, which includes apartment blocks and townhouses, surged 20 per cent while approvals for private sector houses rose 3.4 per cent.

June’s surge in approvals followed falls in earlier months, pointing to a gradual decline in housing construction, Commonwealth Bank economist Gareth Aird said.

In the year to June, approvals were down 2.3 per cent, with apartments and townhouses down 6.6 per cent and houses up 1.4 per cent.

“The 20 per cent spike in the highly volatile multi-units over the month continues the recent pattern of big monthly falls followed by solid rises,” Mr Aird said.