A 25 PER CENT jump in building approvals in Tasmania for July was the strongest growth of any state.
Describing the increase as a positive sign, Housing Industry Association executive director Stuart Clues said low interest rates and pent-up demand were driving the growth.
The increase followed a long and difficult period in the building industry, he said.
``The general trend of improvement in residential construction is positive proof that the Reserve Bank's rate cuts are slowly fostering expansion in parts of the housing industry.''
In real terms there were 173 approvals for the month of July compared with 138 in June.
Mr Clues said building approvals represented work in the pipeline for the 20,000-plus Tasmanians in the construction sector.
``Tasmania reflected the national trend with positive growth in most other states with the exception of Queensland and New South Wales,'' Mr Clues said.
``On a national basis we are disappointed to see that approvals fell in key states like NSW and Queensland during July.
``The direction of new home building in these large states means that the pace of recovery is still very fragile.''
Mr Clues said he hoped the incoming federal government would put an early policy focus on residential construction.
``It is our hope that today's figures will serve to concentrate minds and encourage policymakers to tackle the home building industry's structural impediments.''
Seasonally adjusted building approvals for July 2013: Tasmania (up 24.7 per cent), Victoria (up 22.2 per cent), the ACT (up 12.6 per cent trend terms), Western Australia (up 9.8 per cent), South Australia (up 9.7 per cent) and the Northern Territory (up 4.0 per cent), NSW (down 6.7 per cent) and Queensland (down 4.0 per cent).