By Mike Cherney

SYDNEY--The number of Australian home building permits rose 7.0% in November from October, although they declined compared with a year earlier.

The central bank has cut interest rates to a record low 1.5% in a bid to spur activity in areas such as housing construction as a long resources boom ends. But at the same time, policy makers are worried about the housing sector overheating, leading to risky investment that could derail the economy.

Approvals to build or renovate houses and apartments fell 4.8% in November from a year earlier, the Australian Bureau of Statistics said Monday.

Permits to build houses fell 0.2% in November from October, while approvals for apartments and other dwellings rose 18.5%.

-Write toMike Cherney at mike.cherney@wsj.com

(END) Dow Jones Newswires

January 08, 2017 19:51 ET (00:51 GMT)

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