Slump in Australia Building Permits Confirmed

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.

The seasonally adjusted number of total dwellings approved in Australia surged 15.2% month-on-month to a near four-year high of 18,406 units in November 2025, matching a preliminary reading and swinging from a 6.1% decline in the previous month. It was the steepest monthly rise since May 2023, buoyed by a strong upturn in permits for private sector dwellings excluding houses (34.1% vs -13.5% in October). Also, approvals for private sector houses recovered modestly (1.3% vs. -1.3%). Geographically, building permits increased in New South Wales (28.7%), Victoria (23.8%), Queensland (34.2%), and South Australia (1.0%). In contrast, approvals declined in Western Australia (-14.1%) and Tasmania (-5.8%). On an annual basis, dwelling approvals climbed 20.2%, reversing a 1.1% fall in October.