Overall dwelling approvals remained elevated in May, with the detached housing segment still holding strong due to the HomeBuilder scheme, according to the Australian Bureau of Statistics and the Housing Industry Association (HIA).

Over the three months to May, detached housing approvals increased by 9.1%. On an annual basis, approvals for the segment were 63.1% higher. Other segments also posted an increase, with renovation approvals increasing by 51.7% annually while multi-unit approvals growing by 36%.

Angela Lillicrap, economist at HIA, said detached housing approvals are expected to remain elevated for several more months as approval authorities work through the remaining HomeBuilder projects.

"April’s announcement of the extension of the time to build for HomeBuilder projects from six to 18 months will see detached approvals elevated for longer. Builders are no longer rushing projects through the approvals process, as this alleviates the pressure to meet the deadline," she said.

Western Australia recorded the highest increase in detached dwelling approvals at 148%, followed by South Australia's 83.3%, Queensland's 69.9%, Victoria's 48.9%, and New South Wales's 35.9%.