ACT Master Builders Association's deputy director Michael Hopkins expects a lift in building activity over the next six to 12 months, springboarding off four months of strong housing approvals and the promise of more land up for grabs.

"The last four months of building approval figures released by the Australian Bureau of Statistics show a significant upturn in building approvals in the ACT," Mr Hopkins said.

"After a slow start to the 2014-15 financial year, building approvals are now at around mid-2014 levels, but still some way off the peaks of 2011 and 2013."

Mr Hopkins tips Moncrieff to be a hive of activity over the coming months, as construction begins prior to the display village's opening in early 2016.

The area will potentially house 2,200 dwellings, parks and playground areas.

Mr Hopkins said building approvals for new single housing have been low due to the scarcity of new land for housing.

This has seen the number of building approvals for higher density housing hit the roof.

Almost two-thirds of new residential approvals from March to June were for units and apartments, with a reported 15, 000 new apartments in the pipeline.

Paul Murphy, the managing director of ACT construction company Project Coordination, said the apartment-building sector is being driven by the need to maximise the use of the land and proximity to amenities.

"In Franklin people want to near Flemington Road because of the potential for light rail. Coombs is an easy drive to the city," he said.

"In Lawson developers are looking at building townhouses because land is expensive."

Paul Powderly of Colliers International believes building activity has been boosted back to pre-2007 levels.

Releases which are ready to go to market - like stage one of Denman Prospect where 377 lots will be completed from March to June next year - are helping to restore confidence in the lacklustre sector, he said.

"The building industry has been pretty quiet recently as there hasn't been enough land being released and they've been relying in the medium density market which has been a bit soft," Mr Powderly said.

"Canberra is coming out of a time of fiscal restraint from the government and public service job losses. That's stabilised now and it's going to be a good time for Canberra, with a buoyant market and healthy construction activity.

"It's good for the economy, jobs, growth and confidence with spending money. We've weathered the storm and Canberra has got some really good years ahead of us."

While ACT Property Council executive director Catherine Carter agreed the news was positive for the building industry, her primary concern is the high commercial office vacancy rates in the city centre.

While the ACT government has set targets of 50 per cent for both urban infill and greenfield development, Ms Carter said the infill target is not even close to being met.

She estimates the vacancy rates are running at 15 per cent.

"What we'd like to see happening is the government adopting policies encouraging adaptive reuse of offices in Civic and other town centres," Ms Carter said.

"Currently Canberra has the second highest commercial vacancy rates in the country, the first being Perth. It's a massive problem for the territory and for the country."