The Australian Bureau of Statistics (ABS) recently announced that the number of single-family approvals fell by 2.1% in September, the lowest monthly result since December 2013.
Approvals for apartments and other dwellings increased by 10.7%.
According to Shane Garrett, chief economist of Master Builders Australia (MBA), this downward trend is an "undesirable milestone", pointing out that it reflects the adverse market factors.
He added that the decline in the value of homes in some cities also had an impact on the current trend.
"House prices continue to fall in Australia's two largest markets, making it harder to create new homes. The results of this week's survey of the MBA industry also showed how much the ongoing Royal Commission has led to a tightening of financing conditions in recent months, "Garrett said.
A closer look at the data reveals that the level of new home construction over the last five years has significantly improved the capacity of the economy by increasing the number of jobs in construction and allowing to more workers in all sectors to build houses.
However, as housing construction activity began to slow down, Garrett emphasized the importance of government policies specifically allowing the construction sector to provide sufficient new housing to meet the demand .
For reference, the largest increase in new housing approvals recorded last month was in Victoria, up 30.5%. Tasmania (+ 15.7%) and South Australia (+ 7.8%) ranked second and third respectively.
In contrast, the largest decrease in approvals was in Western Australia (-19%), followed by Queensland (-10.5%) and the Australian Capital Territory (-8.4%). Fewer approvals also had a negative impact on New South Wales (-6.8%) and the Northern Territory (-6.9%).
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