The number of dwelling approvals in WA fell in August, led by a massive decline in the 'other-dwellings' segment of the market, according to the Housing Industry Association.

Executive director John Gelavis said 1646 dwellings were approved in August, down 14.3 per cent from the previous month, while approvals for other-dwellings plunged by 41.9 per cent.

“The strong decline in August approvals to 343 by the ‘other-dwelling’ segment, which is mainly comprised of apartments, is the lowest results since March 2014,” he said.

“It reflects not only the volatility in this particular market but also a slowing from the previous year’s activity.”

Mr Gelavis said the figures reflected the dramatic decline in the current new home building cycle across WA, and slowing population growth and falling property sales and rental prices would make conditions more challenging.