Building approvals rise sharply in May

The number of new house building developments being given the green light down under rose sharply in May.

Approval rates were up by 27.3 per cent in seasonally-adjusted terms, which was a major improvement on the previous month when the number of new projects fell by 7.6 per cent.

This is great news for people who want to get a foot on to the property ladder, as it is widely accepted that a lack of supply of affordable dwellings is one of the main reasons for sluggish growth in the housing sector.

Victoria accounted for most of the upturn, while construction activity was also heightened in New South Wales, Western Australia, South Australia and Queensland. Only Tasmania reported a downturn in approvals.

This follows on from figures released by RP Data, which indicated the average house price went up by one per cent in June. Interest rate reductions have been cited as a major factor behind the recent rise in the uptake of mortgages across Australia.

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