Almost $30 million in development was approved by Dubbo Regional Council in December.
It was more than double the value of development approved in 2019.
The December boom was followed by just over $15 million in January.
There were 117 applications in the local government area in December, which included 60 applications for single dwellings and another 11 for secondary or dual occupancy dwellings.
In January another 19 single dwellings were approved by council.
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According to the Australian Bureau of Statistics, the number of private sector house approvals reached a record high in December. ABS' director of construction statistics attributed it to federal and state housing stimulus measures, along with record low interest rates.
Councillor Kevin Parker said there was still a "significant demand" for purchases and rental accommodation in Dubbo, which council had heard from multiple sources.
Dubbo mayor Ben Shields said the development figures in the past two months were "quite extraordinary".
"What really interests me is that we have 15 other residential development applications [in December]... they're everything from flats to dual occupancies to town houses. All those residential developments that have long been said we're not approving, well proof is in the pudding, they're being approved," Cr Shields said.
For the financial year so far, there have been 141 single dwelling applications approved and another 23 residential applications classified as 'other'.
In total, 76 units have also been given the green light.
The total number of single dwelling approvals for 2020/21 has already surpassed all of 2019/20, despite another five months to go.
"I can't think back to a time when our construction industry has been so hot, when there's been so much building work going on. I know they say all over NSW the construction industry is in big growth mode but more so in Dubbo," Cr Shields said.
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