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SYDNEY - Australia's home-building approvals rose three times as much as expected in September, signalling housing may stoke growth.
The number of approvals to build or renovate houses and apartments jumped 6.1 per cent from August to 13,286, the Bureau of Statistics said. The median forecast of 23 economists surveyed by Bloomberg News was for a 2.2 per cent gain.
Rising immigration has boosted demand for housing after a construction slowdown last year reduced the supply. That has driven up rents, which may spur property investment and also turn some renters into buyers. Growing demand has also tempered the effect of rising interest rates, with all economists in a Bloomberg News survey saying the central bank will raise interest rates next week.
"We're in the early stages of a housing upturn, and this slow but steady improvement should continue," said Steven Milch, head of economic research at St George Bank. "Another interest-rate increase next week won't cancel the housing upturn, it will just dampen it a little."
- BLOOMBERG
