Nationally, the figures fell by almost 11 per cent, with big drops recorded in New South Wales (25.1 per cent), Queensland (22.7 per cent) and Western Australia (20.5 per cent).
Housing starts hit their lowest level - 35,425 - since the GST-induced weakness in 2001, the Housing Industry Association said today.
The HIA said SA had been a stand-out performer, partly because of affordability for a number of years.
But with Australia slowing, SA also was expected to fall next year.
"SA has certainly held up for longer than some of the larger housing markets," HIA chief economist Harley Dale said.
"But unfortunately, it looks as though that good result isn't going to last, and that it is going to be a slightly weaker time in late 2008 and early 2009."
The HIA said hefty interest rate cuts and fiscal stimulus would create the potential for a modest recovery in detached house starts over the first half of next year.
"(But) the longer the current negative impacts of the credit crunch and general uncertainty persist, the greater the risk such a recovery fails to materialise," Mr Dale said.
Housing starts increased in the ACT (77.3 per cent), in Victoria (9.7 per cent), Tasmania (7.5 per cent) and the Northern Territory (1.5 per cent).
