FX.co ★ Australia Building Permits Slump in December

In December 2025, the seasonally adjusted number of total dwellings approved in Australia experienced a significant decline of 14.9%, reaching a four-month low of 15,542 units. This drop reverses the previously recorded upwardly revised increase of 13.1% observed in November, as per preliminary data. The primary factor behind this decrease was the marked reduction in approvals for private sector dwellings, excluding houses, which plummeted by 29.8%, starkly contrasting with the 29.6% rise previously noted in November. This trend indicates persistent weakness in higher-density construction. Conversely, approvals for private sector houses grew at a slower pace of 0.4%, down from 0.8%, pointing to a deceleration in detached housing activity. Examining the regional data, building permits declined in several areas: Victoria (-32.2%), Queensland (-16.3%), New South Wales (-14.3%), Western Australia (-1.9%), and South Australia (-0.8%). Meanwhile, Tasmania experienced a significant increase of 11.3%. On a year-on-year basis, dwelling approvals showed a marginal rise of 0.4%, a considerable slowdown from the upwardly revised surge of 19.4% observed in November. This suggests that the earlier recovery in approvals is losing momentum.