The HomeBuilder scheme, announced in June as a COVID-19 economic response initiative, offers a $25,000 grant to new home builders and people willing to spend $150,000 or more on a home renovation.

There were 898 detached building approvals across the Hunter in the three months to October, up from 760 in the same period last year.

"This is an extraordinary result achieved during a period where we might have expected the building sector to slow," Senator Hughes said.

"This translates into jobs and a stronger local economy with Hunter builders, certifiers and new home-owners the winners here."

Housing Industry Association regional executive director, Craig Jennion, said HomeBuilder had been the "facilitator for improving consumer confidence in the housing market".

"The stimulus, increased stamp duty concessions, budget announcements and low interest rates have all combined to give home buyers, renovators and industry the incentive to continue to navigate through these challenging times," he said. Mr Jennion said detached building approvals were up 7 per cent across the Hunter in the year to October compared to the year prior.

"The preference for detached dwellings increased strongly this year with detached dwelling approvals now accounting for over 71 per cent of all approvals, an increase from 57 per cent for the 12 months to October 2019," he said. "Maitland, Lake Macquarie and Newcastle continued to be the top three locations for approvals, accounting for over 72 per cent of total dwelling approvals".

The HIA data shows unit approvals in the Hunter dropped 74 per cent. There were only 285 unit approvals in the quarter to October, down from 1078, but this was largely due to more than 800 units being approved across a small number of developments in Newcastle last year.

HomeBuilder has been extended through to March 31, but the grant will be reduced to $15,000 per project during from January 1.

In NSW there have been 5749 new home builder applications and 32,464 applications across Australia.

"The entire scheme has been a colossal success and clearly it's been a great boost for Hunter builders when they need it the most," Senator Hughes said.

"By injecting funds into the building industry, we are ensuring it's well-positioned as we emerge from the COVID-19 crisis."

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