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The residential building and construction industry welcomed the new Territory Plan and the approach of creating an ‘outcomes-based’ planning system. However, this ideal has already been effectively watered-down with the inclusion of arbitrary controls that work against the provision of new housing supply.
HIA has identified simple amendments that can facilitate additional development opportunities, which will still be subject to the broader controls of the planning system to ensure its objectives are met.
There are a number of factors affecting the price of land, including economic growth, population growth and household sizes. However, accepting the basic economic premise that supply of a commodity influences prices, then it is intuitive that limiting the supply of greenfield land, without a commensurate increase in supply elsewhere, will push prices up for all housing types – new and existing.
The lack of affordable land in the ACT continues to constrain the delivery of housing at an affordable price. The government land release strategy executed by the Suburban Land Agency has seen an ad hoc supply which creates a ‘boom or bust’ approach for the community and the industry. Consistency of supply is key to reducing the spikes in demand and pricing.
HIA calls on the next government to develop and publish a plan for the supply of shovel ready land for residential development over the next 15 years horizon with clearly identified short, medium and long term development sites.