HIA Queensland Executive Director Warwick Temby said home building approvals in the March quarter of this year were seven per cent up on the same time on 2011.
The number of building approvals for Toowoomba was up 59% for the first quarter this year compared to the first quarter last year.
There was 184 dwellings approved in the first quarter of 2012 compared to 116 for the same period last year.
"While activity is still extremely low by historical standards it is showing signs of improvement," Mr Temby said.
"But the improvements that we are seeing are very patchy across the state.
"It is the central Queensland cities associated with the resources boom that are experiencing the strongest growth.
"Townsville, Rockhampton, Mackay and Gladstone have all seen home building approvals more than double over the last year.
"Conditions in South-East Queensland though continue to be soft, with approvals still down on 2011 levels.
"Recent reports from HIA members in the South-East suggest that conditions are set to improve, especially after the recent cuts in housing lending rates.
"HIA also hopes that the new State Government will inject some confidence into the home buying public," Mr Temby said.
"Its plan to restore stamp duty concessions for the family home in July will be an important step in this process."