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    VIDEO: Building approvals tumbles as higher interest rates bite

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      Australia?s total dwellings approved plunged 17.2% in July, in the face of interest rate hikes and the surging cost of building materials.

      The sharp decline was led by a lack of approvals for apartments, with a 43.5% fall.

      House approvals remained steady, rising 0.7% in July.

      Western Australia saw the biggest drop in the number of dwelling approvals ? down 36.9 per cent whereas South Australia was the only state to record a gain - up 19.2%.

      So what can we expect to happen in the industry?

      Well with some major banks predicting house prices to fall by as much as 20% the next year as the RBA raises interest rates to tame inflation - we could see demand soften and a drop off in the construction of new homes and buildings.

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