This is according to the Housing Industry Association (HIA), which noted that while the headline seasonally adjusted figure for the month rose 6.4 per cent, this was offset by a 22.5 per cent increase in approvals for Australian real estate in the other dwellings category.
The rise was only a partial recovery of the 46.5 per cent dip seen in July, something chief economist at the HIA Harley Dale described as 'less than ideal'.
Noting approvals for detached houses and other dwellings were down 4.5 per cent and 28.4 per cent year-on-year respectively, he said the data "highlights the long road ahead to achieve a robust and sustainable housing recovery".
However, he noted the housing market should begin to show improvement in the near future, thanks in part to lower interest rates and stimulus measures in Queensland and New South Wales.
Figures from the RP Data Rismark Home Value Index also add weight to the suggestion a recovery will soon begin, as latest data shows house prices in Australia's major cities rose for the fourth successive month in September.