House building approvals rise in August

House hunters have often bemoaned the lack of choice when they start scouring the property markets.

The number of new buildings being erected across the country has been somewhat subdued since the global economic crisis took hold in 2008-09, but new figures have suggested that things might be starting to look up.

According to the Australian Bureau of Statistics, dwelling approvals were up by 6.4 per cent in seasonally adjusted terms in August.

It is encouraging to see the figures return to positive territory, following a sharp 21.2 per cent decline in the previous month.

However, there are still great differences between each region of Australia.

While building approvals were up by 30.2 per cent in Victoria and 16.1 per cent in Western Australia, construction activity decreased by 18.3 per cent in New South Wales and one per cent in South Australia.

Many Aussies have been reluctant to take out mortgages while the global economy is still so volatile, but this week's 25-point cut to interest rates could encourage more people to apply for a home loan, although this is only likely to happen if the banks follow the advice of the Reserve Bank of Australia.

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