Approvals for building new home constructions dropped by 2.5 per cent in June, latest data released by the Australian Bureau of Statistics (ABS) showed, but was actually less than what industry experts had expected.

Economists, who expected a 15 per cent reduction of total residential building approvals from the month before, were pleasantly surprised with the development.

"The fall of 15 per cent that was expected was a reaction to the 27 per cent gain of the previous month," Michael McCarthy, chief market strategist from CMC Markets, was quoted as saying by the AAP on Tuesday.

"What should focus attention is that annual rate, for the second month in a row now, we've had a positive reading, and that suggests that the deleveraging that's been weighing on the housing market might be coming to an end."

Seasonally adjusted figures by the ABS revealed there were a total of 13,336 units of building approvals in June, compared from the revised 13,683 units in May.

Savanth Sebastian, CommSec economist, said the latest ABS figures was a sign that the housing sector could have bottomed out.

"I think the latest interest rate cuts have helped. The anecdotal evidence is that there was a pick-up in inquiries to build," he told AAP. "I think the sector has definitely gone through the worst of it.

"Over the latter part of this year, there should be more activity in the housing sector."

In June, the Reserve Bank of Australia (RBA) slashed its cash rate by a quarter of a percentage point to 3.5 per cent.

The ABS said also said that private-sector house approvals dropped 1.1 per cent to a seasonally adjusted 7,129 from a month ago. It was likewise down by 7.7 per cent from a year ago.