Australian Home-Building Approvals Rise Strongly

Australian Home-Building Approvals Rise Strongly

Australian Home-Building Approvals Rise Strongly

The FINANCIAL -- The number of Australian home-building permits rose solidly in May supported by a jump in approvals for apartments, government figures showed on July 1, according to Nasdaq.

Approvals to build or renovate houses and apartments rose by 2.4% from April and 17.6% from a year earlier, the Australian statistics bureau said.

Approvals for private-sector houses fell by 8.4% in May from April, while permits for building apartments jumped by 16.6%.

The overall rise in the number of home-building permits bodes well for construction activity. It also reflects record- low interest rates that are driving investment mainly in apartments to accommodate strong population growth in major capitals such as Sydney and Melbourne.