Approvals for the construction of new homes rose 9.9 per cent across Australia in May, official figures show.

Local councils approved the construction of 16,425 new homes, including houses, townhouses and apartments in multi-unit buildings, in May.

Over the 12 months to May, building approvals were up 14.3 per cent, the Australian Bureau of Statistics said on Thursday.

Economists had forecast a rise of 3.2 per cent in approvals for the month.

Approvals for private sector houses rose 0.5 per cent in the month, and the ‘other dwellings’ category, which includes apartment blocks and townhouses, was up 27.2 per cent.