* RBA meets, seen certain to keep rates at 1.5 pct
* Approvals to build new homes surprisingly strong, again
* Job ads point to still solid demand for labour in Sept
By Wayne Cole
SYDNEY, Oct 4 (Reuters) - Australia's central bank is considered certain to leave rates alone at its October policy meeting on Tuesday, in part as the country's biggest-ever boom in apartment building helps underpin economic activity and jobs growth.
A Reuters poll of 57 economists found all expected the Reserve Bank of Australia (RBA) to keep the cash rate at a record low of 1.5 percent as it judges the impact of cuts in August and May. AU/INT
The board meeting will be the first chaired by new governor Philip Lowe, but he has already signalled his comfort with the economic outlook and a reluctance to take rates ever lower.
In particular, Lowe noted that a long slump in mining investment was past its worst and prices for some key commodity exports, notably coal and iron ore, had rebounded.
"We think the case for no more cuts is strengthening," says Paul Bloxham, chief economist Australia at HSBC. "Economic growth is strong, commodity prices have risen, and the drag from the mining investment decline is set to fade."
The economy expanded at an annual pace of 3.3 percent in the year to June, in part thanks to a surge in home building that has some way to run yet.
Tuesday's figures from the Australian Bureau of Statistics showed approvals to build new homes slipped only 1.8 percent in August. Analysts had looked for a drop of around 7 percent as payback for a 12 percent jump in July.
APARTMENT LIVING
A generational shift to apartments and away from houses saw multi-unit approvals up over 26 percent on August last year.
The shift is likely to make the building cycle longer than in the past simply because it takes much more time to complete apartment towers.
Such is the pipeline of new projects that the RBA has warned it could lead to a glut of unsold property and downward pressure on prices, particularly in Melbourne, Sydney and Brisbane.
Fearing eventual defaults, the major domestic banks have already stepped back from funding the apartment sector. Yet money has still been forthcoming from foreign banks and self-managed retirement funds.
Some pullback in home prices might not be unwelcome. Figures from property consultant CoreLogic out this week showed values in Sydney rising at an annual pace of 10.2 percent, with Melbourne not far behind at 9 percent.
Since the upturn began in mid-2012, prices across the capital cities have increased by 41 percent.
The bonanza in home building has also created thousands of construction jobs and helped offset weakness in mining. Australia's unemployment rate hit a three-year low of 5.6 percent in August and leading indicators of labour demand point to further gains ahead.
Job advertisements, for instance, eased 0.3 percent in September but that followed a 1.7 percent jump the previous month, according to a survey from ANZ.
A recently released government measure of job vacancies climbed 4.5 percent in the three months to August to reach a four-year peak.