However, the data also highlighted the stop-start reality for apartment approvals which fell sharply from November to December, with nine storeys and above down 43 per cent (3,601 to 2,048) and four storeys and above down 37 per cent (5,116 to 3,234).
Seasonally adjusted figures show total dwellings approved fell 14.9 per cent in December to 15,542, down from 18,255 in November.
Property Council Group Executive Policy and Advocacy Matthew Kandelaars said the December result was a clear reminder that Australia needs steadier approvals at scale, and faster conversion from approval to construction.
"November showed what's possible but December shows how quickly the numbers can swing back," Mr Kandelaars said.
"The annual picture is improving, but we're not going to hit national targets on monthly surges - we need a consistent pipeline of feasible projects that can move from approval to site."
Mr Kandelaars said apartment approvals were particularly volatile in December but the trend for apartment approvals over the year was positive.
"Over the full calendar year, apartment approvals were up, and that's critical because multi-unit housing is where we can add supply at scale in well-located areas," he said.
"Approvals for nine storeys and above rose 24 per cent in 2025 compared to 2024 (22,873 to 28,390), while approvals for four storeys and above rose 37 per cent (32,259 to 44,350)," he said
Mr Kandelaars said the key practical priority was to lift feasibility and cut the time it takes to turn approvals into homes, particularly for apartment projects.
"Approvals are only the first step - too many projects then get stuck in the post-permit maze, things like utilities connections, servicing upgrades, certification, subdivision and titling, and infrastructure sequencing," he said.
"More homes on the ground sooner require clear timeframes, better coordination with utilities, and settings that make more apartment projects viable in the first place.
"As we've set out in our Pre-Budget Submission, government needs to improve the investment settings to make projects stack up, plan for better cities by aligning infrastructure and land use, and lift construction productivity so approvals translate into homes faster."
