“Despite the 3.2 per cent seasonally adjusted easing in building approvals for February, the latest data paints a picture of a solid housing market mainly driven by a continuation of high rise apartments and with private sector housing approvals levelling out,” Wilhelm Harnisch CEO of Master Builders Australia said.

“The unknown question is whether the housing market is reaching a peak in this cycle and the degree to which the much mooted expectation of a further interest rate cut may stimulate the new housing market further,” he said.

“Master Builders expects high rise apartments to continue to feature in new dwelling activity over the next 12 months in the Eastern Board capital cities with private sector housing steadying,” Wilhelm Harnisch said.

“The February building approvals show a continuing increase in the value of alterations and additions and this part of the new housing market adds to the overall positive outlook for housing in the next 12 months,” Wilhelm Harnisch said.