Australian dwelling approvals posted their fastest rise in 2½ years surging by 15.2% in November. The key driver was the volatile higher-density segment that saw a 36.3% increase in approvals in the month, while house approvals were up by a modest 0.7%. These outcomes elevated total approvals to their highest since February 2022 coming in at 18.4k in November. RBA rate cuts - 75bps in total in 2025 - rising housing prices and a tight overall supply-demand balance have all likely helped lift approvals, but levels still remain below those seen in past cycles.
Monthly dwelling approvals rose 15.2% in November to 18.4k. This continues a volatile profile over recent months, often swinging from large gains to declines. The November result follows a 6.1% fall in October, an 11.4% rise in September and declines of 3.7% in August and 10.3% in July. Overall, approvals have averaged out at 17.1k over the 3 months to November - a highwater mark on that basis going back to late 2021. The chart below shows the higher-density segment has driven the recent momentum in approvals.
The high-rise segment in particular looks to be the main driver of the upturn in higher-density approvals. That strength has been evident across a number of capital cities including Sydney, Melbourne and Brisbane.
