Apartment building activity declined for a 12th consecutive month in March, according to a survey of the Australian construction industry.
The Australian Industry Group/Housing Industry Association Performance of Construction Index released on Friday also recorded house building contracting for the eighth month in a row.
"Looking ahead, the construction industry is likely to remain in negative territory over coming months due to the ongoing fall being recorded in new orders," Ai Group analyst Peter Burn said.
The report said new orders in the apartment sector had been falling since September 2017 but were coming off a high base.
"The backlog of projects that have accumulated over the last few years will continue to sustain a relatively high level of activity," HIA economist Tom Devitt said.
"This strong pipeline of work is being worked down at present and this will continue unless there is an improvement in the amount of work entering the pipeline," he said.
Survey respondents in the residential building area pointed to tight lending conditions, falling real estate prices and a cautious attitude from prospective property buyers for the continued contraction.
