Master Builders Australia have announced that momentum in Australia's housing market is growing.

Master Builder's Chief Economist Shane Garrett said new home building approvals expanded by around 7.6 per cent during September.

At a glance:

• Detached housing approvals rose by 2.7 per cent in September
• Apartment and unit approvals rose by 16.1 per cent in September
• Nationally, new building approvals rose by 7.6 per cent in September.

“Encouragingly, last month’s gain was led by apartments and units with an increase of 16.1 per cent," said Mr Garrett.

"This part of the market had experienced difficulties earlier in the year but the volume of new approvals for high density housing has now notched up two consecutive months of growth.   

“Detached house approvals also rose during September albeit at a more modest rate of 2.7 per cent.

"This side of the market does tend to move more smoothly from month to month."

Mr Garrett said a range of indicators – house prices, lending and now building approvals – all indicate that Australia’s housing market recovery is gaining traction.

"Housing market conditions have a huge impact on confidence across our economy and today’s figures must be seen as very good news on that front,” said Mr Garrett. 

During September, Queensland led the gain in new home building approvals (+19.6 per cent) followed by South Australia (+16.0 per cent).

There were more modest increases in Tasmania (+3.4 per cent) and Victoria (+3.3 per cent) during the month. 

Despite the favourable national result, several markets saw new dwelling approvals drop during September including Western Australia (-24.5 per cent), the Northern Territory (-9.3 per cent) and New South Wales (-2.5 per cent).

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