A 12.6 percent fall in total housing approvals for August has been triggered by a drop in apartment approvals from 5,427 in July to just 3,213 in August.

In contrast, approvals for detached houses increased by 1.1 percent to 8,952 for the
same month.

Seasonally adjusted approvals fell in Western Australia, 16.6 percent down; Victoria, 14.5 percent; Queensland, 14.3 percent; South Australia, 11.15 percent; Tasmania, 10.95 percent; and New South Wales, 1.2 percent.

The drop in apartment approvals, particularly in larger cities, is thought to be caused by a shortage of suitable sites as well as increasing resistance to these types of developments by local government.

Source: HIA