Residential building approvals have rebounded in NSW and Victoria, growing at 14.0% and 4.6% respectively in October, while building approvals in Queensland declined by 0.7%, according to today’s ABS building approvals data (see the seasonally adjusted data). Across Australia, building approvals increased 9.3%.

But the good news in the rest of Australia may be short-lived, as the recent interest rate increase may restrain future building approvals, according to some economists:

Building approvals surge not likely to last

It appears that the demand for residential properties will be relatively weak in the near term, and this will impact on both building approvals and property prices, which are also being driven lower by the recent large build up in housing stock:

Australian house prices relatively stable but falls expected in the coming year say experts