Housing Minister Jim McGinty said the latest housing approval figures have highlighted the continued strength of the recovery in Western Australia.
Mr McGinty said the strong showing in December - with a 21.1 per cent increase in building approvals - was extremely significant.
"December is traditionally a quiet month, with the industry usually winding down for the festive season," Mr McGinty said.
"However, WA has gone against this trend and continues to show strong and sustained signs of recovery.
"People are confident about the future and are prepared to make what is perhaps the greatest financial decision of their life - to build a new home."
Mr McGinty said the true position of the WA economy was even better reflected by comparisons with the same time in 1991.
"There has been a massive 51 per cent increase in building approvals when you compare December 1991 with December 1992," he said.
"This was the largest increase experienced by any State and is well in excess of the national increase of 24.2 per cent.
"The Lawrence Government's public housing construction program also continues to show up strongly in the figures with more than 20 per cent of activity in December attributable to Homeswest.
"It is unfortunate and extremely bad news for the housing industry and the economy in general that such a stimulus would not be provided under a Liberal government.
"Funds to the States for housing construction would be phased out by a Federal Liberal government and, here in WA, Richard Court and his colleagues are committed to shunting low income earners into the private rental market rather than placing them in public housing."