Western Australia has recorded a 6.5 per cent drop in building approvals for the month of June as approvals across the country slump to their weakest reading in over two years.
Building approvals fell for a second straight month in June, declining by a seasonally adjusted 0.7 per cent to 12,237 units, according to the Australian Bureau of Statistics.
Economists had expected a 1.0 per cent rise in June on the back of a 7.2 per cent decline in May.
CommSec equities economist Savanth Sebastian said in annual trend terms, total building approvals fell by 4.4 per cent, the biggest fall in over two years.
New South Wales was hit hard recording a 16.5 per cent slump in approvals for June, the weakest reading since records were maintained 25 years ago.
WA recorded a 6.5 per cent drop, Tasmania plummeted 34.5 per cent, South Australia fell by 7.6 per cent and Queensland dipped by 1.5 per cent.
Victoria was the only state to record an increase with the number of approvals up 9.9 per cent.
"The housing sector continues to languish with investor interest rather a non event," Mr Sebastian said.
"Decade high interest rates and the feneral slowdown in domestic demand is delaying the anticipated turnaround in the housing market.
"Dwelling approvals have now slumped almost 12 per cent in the first six months of the year."
Meanwhile, in the year to June, commercial building rose slightly to record a fresh record high of $32.76 billion.
Mr Sebastian said commercial building accounts for 42.8 per cent of all building, the highest since November 1997.
