New preliminary data has shown that construction of residential real estate is on the rise, a feat that has been lauded by the Housing Industry Association (HIA).
HIA senior economist Shane Garrett explained that this could be the sign of an uncertain recovery.
Mr Garrett explained: "It is encouraging that the actual volume of residential building work has increased for the second successive quarter following more than a year of declines.
"The fact that the pace of increase picked up supports the view that some momentum may be gathering in the sector. It is also welcome that growth is strongest in the most populous states."
The senior economist highlighted that total residential building volumes were up 1.7 per cent in the December quarter, compared with the previous three months.
New house volumes carried the growth, rising 2.2 per cent.
Mr Garrett highlighted the fact that the resurgence of the residential construction sector is based on the stagnation of renovations.
With a number of economic factors hampering growth, the HIA expert called on the government and policymakers to undertake reforms that will allow the blossoming of the sector.
Queensland and Victoria enjoyed the greatest increase, jumping 8.7 per cent and 4.5 per cent respectively.
