More properties approved for the Australian market but outlook remains weak

Recent figures suggest that more properties are scheduled for the Australian market although overall outlook remains weak because of rising interest rates.

Construction approvals showed positive signs in October, climbing by 9.3 percent after a six month low says the Australian Bureau of Statistics. Specifically, approvals rose in New South Wales by 14 percent, South Australia by 6.1 percent, Western Australia by 2.3 percent and Victoria by 4.6 percent.

Similarly, property prices inched slowly increasing by only 0.3 percent during the same period. In response, sellers are also readjusting house prices as rates have been considered to high in recent months. Only Canberra showed the highest sales increase at 1.8 percent, followed by Darwin at 1.7 percent, Adelaide at 0.9 percent then Sydney and Melbourne at 0.6 percent. Sales have been lagging, for example in New South Wales sales declined by 6.1 percent in October, the fourth consecutive month of decline although in some areas like Victoria, purchases rose by 5.9 percent during the same period.

According to the Housing Industry Association/Jeld-Wen compiling the answers of some of Australia's largest builders showed new home sales increased?by 2.4 percent in October although compared to the same quarter last year, new homes sales plunged by 17 percent. Moreover, sales of private multi-unit dwellings dropped by 2.6 percent during the same period in October with the HIA predicting that new housing sales will decline further by 9 percent next year. "We do, however, recognize that anecdotal evidence currently suggests that this forecast looks optimistic," HIA said in a statement.