Australian housing starts surge for december

Building approvals surged in December but a stagnant private housing sector continues to concern economists. Building approvals rose by 8.7 per cent to 14,457 units in December but fell by five per cent over the year, the Australian Bureau of Statistics (ABS) reported on Thursday.

The number of private sector houses approved was unchanged but other private sector dwellings - flats, townhouses, apartments and the like - rose by 21.3 per cent. Housing Industry Association senior economist Andrew Harvey said the other private sector dwellings category was notoriously volatile, making it hard to read too much into the overall figure.

"The December approvals are driven almost singularly by private sector other dwellings, which rose by 21.3 per cent, while private sector detached dwellings were flat in December and are down by 16 per cent over the course of 2010," Mr Harvey said.

Source: Sydney Morning Herald