The nation's building industry received a boost this week, after the latest Australian Bureau of Statistics (ABS) figures showed a slight decrease in seasonally adjusted approvals for June.
Coming off the back of consecutive falls in the building industry, the last two months have revealed a steady increase in approvals – equating to a 10.2 per cent rise in the last year.
Master Builders Australia chief economist Peter Jones said the recent figures were an encouraging sign for the building sector – indicating the downward spiral in the market had ended.
However, he said market conditions were still precarious and the industry was likely to tread carefully until a full recovery was evident.
"Today's figures, taken together with previous results, are certainly welcome, but any recovery for the industry is still likely to be many months away and would be coming from an extremely low base," Mr Jones commented.
"The annual building approvals figure of 145,000 dwellings needs to increase by at least 30,000 dwellings just to keep pace with housing needs related to Australia's population growth."
Last month's results are an indication of future growth, however builders are expected to remain cautious over the next few months, he added.