ABS data shows dwelling approvals jump

In a sign that the real estate construction sector may be improving, recent data has found that approvals for dwellings increased.

Australian Bureau of Statistics (ABS) data found that November recorded a 2.9 per cent rise following a large fall in the previous month.

The value of residential buildings rose by 2.7 per cent, while the worth of all approvals for dwellings fell by a seasonally adjusted 4.1 per cent. Non-residential real estate values dropped by just under 15 per cent.

Victoria recorded the greatest increase with a 8.7 per cent jump, while all other states saw losses with Tasmania down 7.7 per cent, New South Wales dropping four per cent, Queensland down 1.5 per cent and Western Australia recording a decline of 1.1 per cent.

It comes as new home sales for November recorded a lift of 4.7 per cent, according to a report by the Housing Industry Association (HIA).

HIA economist Geordan Murray said that a number of economic factors have aided in this recovery.

He commented: "Against the backdrop of late 2012, when we had lower borrowing rates combining with a number of states encouraging new home building through amendments to first home buyer assistance, it is promising to see new home sales moving in the right direction."