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SYDNEY - Australia's home-building approvals climbed twice as much as expected in November, signalling growth may pick up.
The number of approvals to build or renovate houses and apartments rose 4.1 per cent from October to 12,739, the Bureau of Statistics said yesterday.
The lowest jobless rate in 30 years increased home-buyers' confidence last year even as the central bank raised borrowing costs three times to stem inflation.
Rising rents, caused by a shortage of housing and faster population growth, may also spur investors and bolster a housing-market recovery this year.
"The rental market will be tight enough this year to trigger an upturn," said Paul Braddick, head of financial system analysis at ANZ Banking Group in Melbourne.
Building approvals fell a revised 6.8 per cent in October.
Approvals were 0.4 per cent lower in November than a year earlier, yesterday's report said.
An index measuring whether consumers think now is a good time to buy a house rose 1 per cent in the three months to December 31 from the previous quarter, according to a survey of 1400 households by Westpac Banking Corp and the Melbourne Institute last month.
- BLOOMBERG
