The number of Australian home-building permits issued rose in August by 3% from July, government data showed Thursday, in the strongest month-to-month gain since May.
Building approvals climbed 14.5% from a year earlier, the Australian Bureau of Statistics said. Permits to build houses fell by 1.8% from a month earlier, while approvals for apartments, townhouses and other dwellings increased by 9.6%.
Housing construction is emerging as one of the few areas of strength in the economy as a long resources boom cools. The central bank has held rates at a record-low 2.5% for more than a year in a bid to spur activity in areas like retail and housing that have led previous expansions.
At the same time, policy makers are worried about the housing sector overheating, leading to risky investment that could derail a fragile economic recovery.
Source : MarketWatch