Labor has seized on an uplift in new home approvals as a sign its efforts to boost housing supply are gathering steam, even as house prices surge following the expansion of its 5 per cent deposit scheme.

Approvals grew by 0.9 per cent between August and September, according to the Australian Bureau of Statistics "trend" measure which smooths out short-term fluctuations.

It is the 20th consecutive month of improvement in this measure.

Housing Minister Clare O'Neil said the result showed federal and state government efforts to build more homes were "bearing fruit" and welcomed the fact that approvals for apartments and townhouses outpaced those for standalone homes.

"Every extra approval is another step toward easing the pressure Australians are feeling in the housing market," she said.

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