Unit supply plunges

THE number of new houses and flats approved for development plunged 20 per cent nationally in December – a fall far bigger than economists were expecting.

Analysts said the slump highlighted continuing volatility in the high-rise construction market, which dragged the broader approval rate down dramatically during the month.

Official figures reveal the number of private-sector houses approved during December rose 1 per cent to 9904, and has now risen for five of the past eight months.

But this was more than offset as approvals in the “other dwellings” category, which includes apartment blocks and townhouses, continued to show sharp volatility.

Permits for other dwellings fell 39.2 per cent in December after surging 30.6 per cent the previous month.