Despite widespread reports of a housing slump in the Perth metro area and the Eastern States, new figures for Greater Bunbury show a substantial increase in approvals for new dwellings.

June approvals for new dwellings in Bunbury jumped to 36, almost double the 2007-08 financial year monthly average of 19.

The July figures for Capel also indicate a rebound in the local housing market.

New dwellings in the shire increased 50 per cent for July to 36, compared to the 2007-08 average of 24.

While new dwelling approvals in Dardanup shot up to 18 for July, an increase of 80 per cent on the 2007-08 monthly average of 10.

WA Country Builders regional sales and marketing manager Peter Cherry said despite the reports of doom and gloom in the media there was still a lot of building activity in the region.

“The reality is the underlying demand is still there,” he said.

“The historic trend for the South West has shown we don’t see the same fluctuations as those in the (Perth) metro area or Eastern States. We’re a bit insulated.”

Mr Cherry said the likelihood of an interest rate cut before the end of the year would also positively affect the housing market.

“I think it will create a real surge in demand,” he said.

“We have seen a higher percentage of first homebuyers ... I think that will continue.”

Mr Cherry pointed to the fact there were now house and land packages available in Greater Bunbury for about $250,000.

“That hasn’t been heard of in the South West for three to four years,” he said.

“There are some great opportunities for buyers. It may be a good time to make that investment.”