Home building approvals had a big rise in April, a sign that last year’s series of Reserve Bank of Australia interest rate cuts are helping the sector.

The number of new homes approved for construction rose 9.1 per cent across Australia in the month, the Australian Bureau of Statistics reported on Thursday.

Approvals for private-sector detached houses rose 2.5 per cent, while other private-sector dwellings, such as flats and townhouses rose 18.7 per cent.

JP Morgan economist Tom Kennedy said the figures were fairly encouraging after both sectors recorded falls the previous month.

“Looking through the recent choppiness in the data, there is a clear upward trend in single family dwellings approvals, which in volume terms are approaching levels not seen in almost two years,” he said.

“Large monthly fluctuations are not an uncommon occurrence in the high density data.

“Growth of this magnitude is therefore unlikely to be sustained, but even so, after a lacklustre start to 2013, an uptick in the approvals data is a welcome sign.”

Mr Kennedy said the improvement in the housing sector backs up the RBA’s view that its four interest rate cuts in 2012 are starting to impact the domestic economy.

Master Builders Australia chief economist Peter Jones expects stronger residential building activity in the coming months.

“The residential building industry is looking for a sustained run of positive approvals figures to help the fledgling housing recovery over the next few months,” he said.

“Low interest rates should continue to encourage cautious new home buyers into the market and allow a housing recovery to gain momentum.”

The RBA’s cash rate currently stands at 2.75 per cent, two per cent lower than where it was in late 2011.

The most recent interest rate reduction was at the central bank’s board meeting in May and the futures market is currently pricing in a one in six chance of another cut in June.