New home sales sank for a third straight month in November but the Housing Industry Association's chief economist expects total starts to remain at historically high levels in the first half of 2016.
New home sales were down 2.7 per cent on a 15.1 per cent decline in apartment sales following the implementation of tighter lending controls by the Australian Prudential Regulation Authority.
But the HIA data released on Thursday also showed detached house sales rose 1.1 per cent, with particular strength in the eastern states.
And HIA economist Harley Dale said there were still record levels of commencements in the September 2015 quarter.
"We expect that commencements held up well in the December quarter," he said.
The positive outlook was echoed by brokerage firm Mortgage Choice, which settled a record $1.15 billion of home loans in December.
"Rates are still sitting at historical lows, making the cost of borrowing more affordable than it has been in a very long time," chief executive John Flavell said.
"As such, we should continue to see a strong supply of potential buyers looking for property."
Over the three months to November, detached house sales fell 4.1 per cent and the sale of multi-units dropped by 11.8 per cent.
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