Official data from the Australian Bureau of Statistics shows total building approvals rose a seasonally adjusted 7.5 per cent in November to the highest level on record.
"While we may see some retracement in coming months, the high level of approvals suggests further growth in dwelling investment through 2015."
The rise was led by a 17.2 per cent increase in approvals in the volatile multi-dwelling segment. That followed a 30.7 per cent rise in the segment in October and a 24.9 per cent fall in September.
“While we may see some retracement in coming months, the high level of approvals suggests further growth in dwelling investment through 2015,” ANZ Research says.
Elsewhere, approvals for traditional houses slipped 0.3 per cent, a third consecutive monthly decline. That reading has now trended slightly lower for 4 straight months.
According to ANZ Research, the rise in approvals is consistent with price gains through 2014, low interest rates and strong investor house loan approvals. This solid pipeline of building approvals, particularly for high-rise apartments, will continue to support dwelling investment in the new year.
This will provide some further impetus to economic growth although dwelling investment makes up just 5 per cent of GDP.