THE total number of Australian houses and apartments approved for construction rose a seasonally adjusted 27.3 per cent in May from April, the Australian Bureau of Statistics said today.
Economists had expected that total residential building approvals to rise 4 per*cent*from the month before.
Industry experts say the large percentage jump is a reflection of growth*from a*low base, rather than a show of strength from the bulding industry.
There were a total of*13,591 building approvals in*May compared with an upwardly revised 10,676 units in April, seasonally adjusted.
"It’s a phenomenal jump, in part making up for last month and for the woeful result in Western Australia,” according to Housing Industry Association senior economist Andrew Harvey.
Approvals in WA fell 47.2 per cent in April, but rebounded 24.8 per cent cent in May. South Australia experienced a similar upturn, Mr Harvey said.
Approvals in April fell 7.6 per cent, Mr Harvey noted.
The rise, particularly for apartments, also reflected the very beginnings of the cuts to interest rates and* State government policy measures such as changes to stamp duty and first home owners grants being brought in across different states, Mr Harvey said.
Apartment and multi-unit approvals increased 58.3 per cent in May* to be up by 41.5 per cent on a year ago, while detached housing approvals rose 9 per cent , but were down by 8.5 per cent when compared*with May 2011.
The Reserve Bank dropped official interest rates 25 basis points in May and 50 basis points in June.
In the year to May, building approvals were up 9.3 per cent, the*ABS said.
Private-sector house approvals rose a seasonally adjusted 8.7 per cent*from a month earlier and fell 7.7 per cent*from a year earlier, the*data shows.
Total seasonally adjusted building approvals for May rose* 25.1 per cent in NSW, 31.8 per cent in Victoria, 10.3 per cent in Queensland, and 16.2 per cent in Western Australia. In trend terms,* approvals rose* 21.5 per cent in the Northern Territory and* 27.5 per cent in the ACT. But in Tasmania* approvals fell 2.1 per cent in seasonally adjusted terms.
