A surge in high-density projects has lifted Australia’s total dwelling approvals to their highest level in almost four years.
The latest figures show building approvals have reached their highest level since February 2022, according to Australian Bureau of Statistics (ABS) data.
Seasonally adjusted ABS figures show the total number of dwellings approved rose 15.2% in November 2025 to 18,406.
Approvals were also 20% higher than the same month in 2024.
Apartment approvals rose 63.6% in November 2025. Picture: Getty
The rebound followed a fall in approvals in October 2025, but unlike the previous month, November’s increase was largely driven by private dwellings excluding houses - a category that includes high-density housing such as apartments, townhouses, semi-detached and row houses.
“The rise in total dwellings was driven by a 34.1% rise in approvals for private dwellings excluding houses. This follows a 13.5% fall in this series in October,” ABS head of construction statistics Daniel Rossi said.
“November had the highest number of private sector dwellings excluding houses approved since June 2018,” he noted.
Apartment approvals alone surged 63.6% to 5558 dwellings, which was 44.8% higher than the average over the past 12 months.
According to Mr Rossi, Queensland and Victoria led the rise in apartment approvals.
“Queensland saw 1878 apartments approved this month compared with 634 last month and Victoria saw 1496 apartments approved compared with 598 last month,” he said.
Detached house approvals also rose, up 1.3% to 9458 and were 3.2% higher than the same period last year.
A four-year high for approvals
The jump in approvals has been welcomed as a positive sign for housing supply, but industry and government leaders warn that sustained growth will be needed to address Australia’s housing shortage.
“Having housing approvals hit a four-year high is a great way to kick off 2026, but we know there’s still more to do,” housing minister Clare O’Neil said.
“These home approval figures show that the housing reforms we’re making are starting to bear fruit.”
Property Council Group executive policy and advocacy director Matthew Kandelaars said that despite the standout result for higher-density approvals, momentum would need to be maintained to meet Australia’s National Housing Accord target of 1.2 million new homes by mid-2029.
“This is a strong result and it’s exactly the direction we need to be moving. National housing targets are having a positive impact because they focus governments on outcomes, not process,” Mr Kandelaars said.
“One good month doesn’t solve the housing shortage. While more than 271,000 dwellings have been approved since the start of the National Housing Accord, we need a sustained run rate and a pipeline of feasible projects that can keep moving month after month.”
Housing Industry Association (HIA) forecasts also point to improving conditions across the sector.
According to HIA, approvals for detached houses increased 10.1% over the previous three months compared with the same quarter two years earlier, while multi-unit approvals rose 36.4% over the same period.
“We expect approvals to continue trending upward, which should translate into higher levels of home building activity through 2026, particularly once the impact of earlier rate cuts flows through to construction starts,” HIA senior economist Tom Devitt said.
“It is anticipated that a recovery will continue in both detached housing and multi-unit construction from 2026 onward, following several years of subdued activity, especially in the apartment sector.
“After nearly a decade of underbuilding, the foundations are finally being laid for a broader housing recovery in 2026.”
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