The government of the Australian Capital Territory (ACT) has made a commitment to construct nearly 26,000 new residences in Canberra over the next five years. This initiative is part of the newly unveiled Housing Supply and Land Release Program, which will be included in the upcoming ACT budget. For the current financial year, plans are in place for approximately 4,300 new homes.
Officials assert that this expansion in housing stock is essential to accommodate the city’s increasing population, anticipated to hit 700,000 by 2050. The overall strategy aims to facilitate the development of 30,000 new homes by the close of 2030.
However, questions arise regarding the types and locations of these new homes. According to the plans, only 11 percent, or about 2,885, of the projected 25,794 homes over the next five years will consist of standalone houses; the majority will be multi-unit residences. This year alone, only 182 of the 4,293 homes planned will be individual dwellings, all located within the Ginninderry development in western Belconnen.
ACT Housing Minister Yvette Berry acknowledged that the target of 26,000 homes is ambitious but considered it attainable. She emphasized the importance of ensuring a diverse housing supply throughout the ACT, particularly for those in need. Additionally, the program sets aside 15 percent of suitable land releases in 2026-2027 for public, community, and affordable housing, aimed at delivering nearly 300 homes across the region.
Criticism has arisen regarding the limited availability of standalone homes in the government’s proposal, with Master Builders ACT CEO Anna Neelagama expressing concerns. She noted that the plan’s first year includes only 182 single dwelling homes for the entire ACT and questioned whether this indicates a decline in the traditional Australian dream of owning a standalone home on a personal lot.
Maria Edwards, CEO of the Real Estate Institute ACT, echoed these sentiments, stating there is insufficient variety in the types of approved housing. She pointed out that while there is much discussion surrounding one-bedroom units as a solution to the housing shortage, many such units already exist. Edwards advocated for the construction of larger two-bedroom and three-bedroom apartments, as well as townhouses, to provide more choices for residents.
Some of the newly announced homes will be situated on greenfield sites—previously undeveloped land—near the Molonglo town center and Macnamara in Belconnen. Nonetheless, the majority will be developed within Canberra’s existing urban area, facilitated by revisions to planning regulations designed to promote infill development.
Minister Berry highlighted that the availability of greenfield land in the ACT is limited, and the government is actively exploring all avenues to achieve its goal of 30,000 new homes. Alongside the Housing Supply and Land Release Program, the government has proposed modifications to the Territory Plan to allow for the development of townhouses, terraces, or low-rise apartments on all residential blocks. This initiative aims to create a ‘missing middle’ housing option, bridging the gap between large multi-unit buildings and individual detached homes.
ACT Treasurer Chris Steel announced that legislation pertaining to these changes will be presented to the Legislative Assembly this week. He indicated that the upcoming budget will also address tax incentives aimed at promoting new ‘missing middle’ housing projects. Steel emphasized that the 30,000 new homes target will be achieved through a combination of government land releases and increased construction on privately leased properties, supported by zoning reforms and more housing developments around shopping centers.
Despite these plans, Ms. Neelagama expressed concern about the significant reliance on ‘missing middle’ housing to fulfill the government’s objectives and called for immediate structural reforms to land release processes. She highlighted that rising interest rates and construction costs could pose challenges for average homeowners looking to build. Moreover, Ms. Edwards pointed out that while land may be available, affordability remains a critical issue. In some areas, such as Whitlam, land prices have surged by 74 percent since 2020, making it increasingly difficult for young families to enter the housing market.
The ACT budget is scheduled for announcement tomorrow.
