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.