The slowdown in housing approvals continues, according to December data released on Thursday by the Australian Bureau of Statistics.
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The number of dwellings approved fell 2.5 per cent in December and has fallen for seven consecutive months.
Dwelling approvals declined two per cent in the ACT, 6.3 per cent in NSW and five per cent in Queensland. Approvals increased slightly in Tasmania, Victoria and the Northern Territory.
The Housing Industry Association said the data confirmed a downward trend, but said the construction sector had a strong pipeline of activity.
"From 2017/18 we will see a sharper decline in new home building activity, primarily due to the medium/high density segment of the market," HIA chief economist Harley Dale said.
"Building approvals peaked in July 2016, but by December last year were only 18 per cent lower than that peak.
"Given approvals reached an all-time high last year that's a modest fall. We can take that away and bank it as a good outcome for the Australian economy."
The ABS said the total value of buildings approved fell 3.5 per cent in December and has fallen for five months. The value of residential building fell 2.4 per cent while non-residential building fell 5.6 per cent.
