Building approvals rebounded in June, but economists said concerns about housing supply constraints and the potential for overheated prices in the future are set to persist.
The total number of houses and apartments approved for construction rose a seasonally adjusted 9.3% in June from May, the Australian Bureau of Statistics said. It was the largest monthly rise since November 2008.
Economists had expected on average that total residential building approvals rose 8.0% from the month before. The rise mostly recovered an 11.0% fall in May.
Residential approvals rose a further 2.5% in June from May, extending an unbroken uptick that began in January. Economists said that the rebound is a sign that economic stimulus measures are working, but growth in approvals still lags the pace required to ease emergent concerns about a return to housing bubble woes.
The lift in approvals comes as private-sector house price monitors report a nascent market recovery, with modest increases recorded across the market in the second quarter.