Approvals for the construction of new homes hit a wall in March as units and townhouses drove a seasonally adjusted 15.5 per cent decline in overall activity.

Approvals for private sector houses fell 3.2 per cent, while the "other dwellings" category, which includes apartment blocks and townhouses, plunged 30.6 per cent.

The "other dwellings" category, which includes apartment blocks and townhouses, plunged 30.6 per cent. Credit:James Alcock

Analysts were anticipating a seasonally adjusted 12 per cent drop in overall activity following a surprising lift in February.

Building and construction economist for BIS Oxford Economics Tim Hibbert said the downward trend would likely continue throughout 2019.