Aussie Home Building Approvals Soar in November

Sydney–Australian residential construction approvals rose unexpectedly in November by the largest amount in nearly nine months, according to the Bureau of Statistics.Home and apartment approvals were up 8.9 percent from October, when they had declined 3.6 percent, Bloomberg reported Tuesday.Private home construction approvals increased 0.3 percent to 9,340 in November and apartment and renovation approvals were up 28.4 percent to 4,882.Construction rises–considered the result of growing employment, wages and immigration–increase the likelihood of Australia’s central bank elevating borrowing costs next month to curtail already-high inflation. The Reserve Bank of Australia opted not to change the benchmark rate in December because of concern that U.S. housing slump-influenced market losses could cause a recession.Building approvals were up 14.6 percent from 2006 in November.The Housing Industry Association reported rate increases in August and November each raised payments on the average A$250,000 home loan by $42.