The number of building approvals for Australian property jumped in July 2009. The massive surge in builders looking to create new property developments around Australia is thought to be driven by low interest rates and first time buyers.

The Australian Bureau of Statistics showed that the number of buildings approved for construction rose 7.7 percent in July compared to June. This figure surprised many industry experts as the rise was predicted to be a paltry 3.3 percent. The rise means that July is the seventh straight month where approvals for new properties in Australia have increased.

The figures are welcome news for Australian property investors as it shows that confidence in the property market in Australia is growing. A confident market will ensure good rental prices and should see property prices start to grow again.

The strong demand for property around Australia appears to be due to two key factors – the low mortgage rates currently on offer and the government’s grant for first time buyers.

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