The seasonally adjusted number of total dwellings approved in Australia fell 14.9% month-over-month to a four-month low of 15,542 units in December 2025, reversing a 13.1% jump in November and in line with preliminary estimates. The decline was driven primarily by a sharp drop in approvals for private sector dwellings excluding houses, which slumped 29.8% after a 29.6% surge in the previous month, reflecting persistent weakness in higher-density residential projects. Approvals for private sector houses edged up 0.4%, easing from a 0.8% rise in November and indicating softer momentum in detached housing activity.
By state, building approvals declined in Victoria (-32.2%), Queensland (-16.3%), New South Wales (-14.3%), Western Australia (-1.9%), and South Australia (-0.8%), while Tasmania recorded a solid increase of 11.3%. On an annual basis, total dwelling approvals were up 0.4%, a sharp slowdown from the 19.4% year-on-year surge seen in November, underscoring that the earlier recovery in permit activity is losing momentum.
