Australia Building Permits Recover Strongly

The seasonally adjusted number of total dwellings approved in Australia surged 29.7% month-on-month to a near five-year high of 19,022 units in February 2026, reversing a 7.2% drop in the previous month, preliminary data showed. It was the first rise in permits aince November, as approvals for private sector dwellings excluding houses rebounded strongly (101.2% vs -25.0% in January). Meanwhile, permits for private sector houses were subdued (0.2% vs 1.7%). By region, building permits increased in most states, including New South Wales (10.1%), Victoria (85.1%), Queensland (14.7%), South Australia (12.3%), and Western Australia (3.1%). In contrast, Tasmania saw a 27.7% decline. On an annual basis, dwelling approvals expanded 14.0%, reversing a 1.5% drop in January.

The seasonally adjusted number of total dwellings approved in Australia dropped 7.2% month-on-month to a 19-month low of 14,564 units in January 2026, confirming preliminary estimates. This followed a 14.9% decline in the previous month. Approvals for private sector dwellings excluding houses continued to drop, though at a slower pace (-24.5% vs -30.7% in December). Meanwhile, permits for private sector houses rose at a slightly softer rate (1.1% vs 1.2%). Regionally, building permits fell in Victoria (-11.0%), South Australia (-9.3%), Queensland (-6.0%) and New South Wales (-5.1%), while increased in Tasmania (14.1%) and Western Australia (13.7%). On an annual basis, dwelling approvals declined 15.7%, the biggest fall since December 2023, reversing a 1.1% rise in the prior month.

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.