The number of permits issued for dwelling construction in Australia posted a record jump in May with the authorities giving nod for many major apartment projects, the latest report from the Australian Bureau of Statistics showed Tuesday.
Dwelling permits climbed by a record 27.3 percent month-on-month on a seasonally adjusted basis in May. This followed a 7.6 percent decline in the previous month. Economists expected just a 5 percent increase in approvals during the month.
The currency advanced upon the release of the exceptionally positive data.
The statistics bureau said the large increase in dwelling approvals in May was driven by a number of large private sector projects in New South Wales, Victoria, and the Australian Capital Territory.
Also, the statistics for Western Australia in recent months may have been impacted by the WA Building Act 2011, which came into effect on April 2, 2012, the ABS said.
The seasonally adjusted estimate for private sector houses rose 8.7 percent in May, following a fall of 11.4 percent in the previous month.
Demand for dwelling units may improve further after another interest rate reduction by the Reserve Bank of Australia.
The RBA slashed rates in May and June to counter the global gloom. The bank retained the cash rate at 3.5 percent as widely expected at the policy board meeting today.
by RTT Staff Writer
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