Building up, but experts cautious written updates:-
AUSTRALIA'S housing construction sector appears to be finally picking up, but economists and industry groups warn further interest rate cuts may be needed to ensure the nascent recovery gathers steam.
The number of residential building approvals rose 2.9 per cent in November, the Australian Bureau of Statistics said yesterday.
UBS senior economist George Tharenou said the figures suggested a modest recovery was underway in the housing sector, though he said almost all of the growth had been in approvals for multiunit properties.
He said the figures suggested a series of interest rate cuts from the Reserve Bank of Australia over the past year was helping stimulate growth in the sector.
The RBA has cut the cash rate, currently at 3 per cent, by 1.75 percentage points since November 2011.
"To us it shows an uptrend since the RBA started cutting interest rates," Mr Tharenou said.
"But it does show a shift in household patterns to highdensity living, which is the more affordable end of the market," he said.
Construction approvals for multi-unit properties rose 10.1 per cent in November, while approvals for houses fell 0.3 per cent.
But National Australia Bank chief economist Rob Henderson said the housing figures weren't as positive as they first appeared, with a fall in the value of buildings approved.
Mr Henderson said the value of residential buildings approved in the month rose 2.7 per cent, after falling 11.4 per cent in October, while the value of non-residential building approved fell 14.4 per cent.
