According to the latest data released, the total building approvals rose 2.9 per cent nationally in November mainly due to a strong rise in the state of Victoria.

The data from the Australian Bureau of Statistics showed that the approvals rose in Victoria but it fell in all other states in the country during November. Victoria recorded an increase of 8.7 per cent in approvals backed by growth of multi-unit dwellings. The rise in Victoria was able to offset the fall in all other states in Australia during the month.

Total approvals fell 1.5 per cent in the month of Queensland but were 13 per cent higher than the same month of the previous year. In New South Wales, the approvals fell 4 per cent but were 19 per cent higher than November of the previous year. South Australia recorded the largest fall in approvals at 13.8 per cent, on the other hand, Western Australia recorded the smallest fall of 1 per cent.

Analysts said that the country's housing construction sector is recovering but industry groups have said that more rate cuts by the central bank might be required to boost the growth in the sector.