Building approvals softened further in August falling by a seasonally adjusted 1.1 per cent as private house approvals contracted 2.4 per cent to its lowest levels since 2013.
Total building approvals are 44 per cent below their November 2017 peak, further crippling what was once of Australia’s strongest sectors.
The monthly new approvals total of 12,817 was the weakest reading since July 2012.
The August result marks the 21st consecutive month approvals have fallen, pulled down again by weaker detached houses.
New approvals for apartments continue to suffer amid weak consumer confidence in Australia’s building and construction sector, slowing to 39,443 in the 12 months to August, down nearly 40 per cent on their 64,553 total a year earlier.
Standalone houses also saw a decline in approvals, falling 2.6 per cent to 8,143 in seasonally adjusted terms in August while attached dwellings rose 1.5 per cent to 4,674, marking the first month-on-month gain since May.
“The fall continues to be driven by private dwellings excluding houses, which decreased by 9.2 per cent in August,” ABS director of construction statistics Daniel Rossi said.
Every state saw dwelling approvals decline over the month, with Australian Capital Territory drawing the biggest decrease in dwelling approvals across August, down -27.7 per cent.
The Northern Territory was down 8.7 per cent, New South Wales 5.4 per cent, Victoria 4.0 per cent, Queensland 2.3 per cent, South Australia 0.9 per cent, Tasmania 0.4 per cent and Western Australia 0.2 per cent.
The ABS approvals figures were released the same day as the RBA moved to cut official interest rates from an already unprecedented low of 1 per cent by another quarter-point.
The move marks the third cut in interest rates this year after 25-basis-point reductions in June and July.
