The latest Australian Bureau of Statistics figures show the number of building approvals fell in June. Local authorities signed off on fewer apartments in June, causing housing approvals to fall at their fastest rate in almost a year.

ABS data showed the number of buildings approved declined a seasonally adjusted 8.2 per cent to 17,868 in June, the largest monthly fall since September 2014. June’s result leaves the number of approvals well below March’s high-water mark of 19,419 approvals.

June’s sharp fall was driven by a large decline in the approval of “other dwellings”, which includes apartment blocks and townhouses. The apartments figure slumped 20.4 per cent, in seasonally adjusted terms, during the month, to 7,887 dwellings.

However, the number of standalone houses increased 4 per cent to 9,763 in June from 9,388. Over the 12 months to April, total building approvals were up 8.6 per cent on a seasonally adjusted basis, the ABS said,

Australia will reach a net surplus of dwellings by 2018, consultancy BIS Shrapnel said last week, with Melbourne and Brisbane producing too many homes and Sydney still suffering from an undersupply.

*Source: The Real Estate Conversation