Slump in Australia Building Permits Confirmed

The seasonally adjusted number of total dwellings approved in Australia declined 7.2% mom to a 19-month low of 14,564 units in January 2026, missing market expectations of a 5.5% growth, flash data showed. The latest result followed a 14.9% slump in the previous month, with approvals for private sector dwellings excluding houses remaining weak (-24.5% vs -30.7% in December). At the same time, permits for private sector houses continued to grow (1.1% vs 1.2%). Regionally, building permits fell in New South Wales (-5.1%), Victoria (-11.0%), Queensland (-6.0%), and South Australia (-9.3%). In contrast, Western Australia (13.7%) and Tasmania (14.1%) posted notable gains. On an annual basis, dwelling approvals tumbled 15.7%, reversing a 1.1% rise in December.

The seasonally adjusted number of total dwellings approved in Australia tumbled 14.9% mom to a four-month low of 15,542 units in December 2025, reversing a 13.1% surge in the previous month and matching flash data. The sharp decline was largely driven by a steep fall in approvals for private sector dwellings excluding houses (-29.8% vs 29.6% in November), due to ongoing weakness in higher-density construction. Meanwhile, approvals for private sector houses slowed (0.4% vs 0.8%), pointing to softer momentum in detached housing activity. Regionally, building permits fell in Victoria (-32.2%), Queensland (-16.3%), New South Wales (-14.3%), Western Australia (-1.9%), and South Australia (-0.8%). In contrast, Tasmania posted a notable increase of 11.3%. On an annual basis, dwelling approvals rose 0.4%, slowing sharply from 19.4% surge in November, highlighting that the earlier upturn in permits is losing steam.

The seasonally adjusted number of total dwellings approved in Australia plunged 14.9% mom to a four-month low of 15,542 units in December 2025, reversing a downwardly revised 13.1% surge in the previous month, according to preliminary data. The sharp decline was largely driven by a steep fall in approvals for private sector dwellings excluding houses (-29.8% vs 29.6% in November), reflecting continued weakness in higher-density construction. Meanwhile, approvals for private sector houses slowed (0.4% vs 0.8%), pointing to softer momentum in detached housing activity. Regionally, building permits fell in Victoria (-32.2%), Queensland (-16.3%), New South Wales (-14.3%), Western Australia (-1.9%), and South Australia (-0.8%). In contrast, Tasmania posted a notable increase of 11.3%. On an annual basis, dwelling approvals rose 0.4%, slowing sharply from a downwardly revised 19.4% surge in November, suggesting that the earlier rebound in approvals is losing steam.