The recent boost in building approvals recorded in the Australian property industry does not necessarily herald a recovery in the country's housing market, according to Master Builders Australia (MBA).
Chief economist Peter Jones warned that conditions in the sector remain "extremely difficult" despite the recent steps forward.
Building approvals only fell back by 2.5 per cent in June following a steep jump in May, sparking optimism across the industry and suggestions that the recent malaise affecting housing could be coming to an end.
However, Mr Jones stressed that more needs to be done to improve conditions in the market.
"While the trend in building approvals has turned positive, the actual level of activity remains in the doldrums," he argued, claiming the number of homes being built needs to increase by 30,000 in order to give the economy the boost it needs.
The Housing Industry Association recently argued that the government has a crucial role to play in reviving the property market in Australia.
Posted by Steve Douglas
