An economist says the demand for new homes is likely to remain subdued as the economic recovery dawdles along.
The number of new building consents issued rose by 3.1% in July.
Excluding volatile apartment numbers, housing consents fell a seasonally adjusted 5.3% to a 10-month low of 1269.
Commonwealth Bank of Australia economist Chris Tennant Brown says housing consents are likely to remain low, given the economic conditions.
The value of non-residential consents also appears to be softening, he says, which paints a bleak outlook for the construction sector
More than 200 consents for apartments were granted during the month, the highest in more than a year.