Perth’s property market is on the upswing with building approvals increasing for the third month in a row based on figures reported by the Australian Bureau of Statistics.

According to the latest available numbers, 1,898 dwellings were approved in November, a rise of 7.1 percent compared to October figures. This was also the fourth monthly rise in five months. During the same period, the number of private dwellings given the go signal increased by 0.9 percent to 1,399.

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Urban Development Institute of Australia WA chief executive Debra Goostrey cited that the positive numbers were a "sure sign the market was already on the road to recovery." "Now that we have a hiatus in rate rises and there are some really good property deals available people are certainly getting out and considering property as a good investment once again," she said.

In contrast to the positive outlook, a survey done by the Housing Industry Association says new housing in Western Australia are forecast to drop by 20 percent in 2011, the highest drop in the country.

Western Australia had the highest loan delinquency rates in the country with two percent of its home loan payments delayed by more than a month compared to the national average of 1.54 percent reported Fitch Ratings in December. “In parts of Western Australia, people were expecting house price appreciation, and may have speculated,” said James Zanesi, lead author of the Fitch report. “It’s not so much about the economy itself, but that people in these areas are more sensitive to interest rate movements and stagnation in house prices.”

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