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“Tasmania’s current land supply settings had not demonstrated the capacity to deliver sufficient subdivision activity, investment or construction at the scale required.
“The reality is simple: the level of land currently available has not translated into enough new lots, enough development, or enough new homes. Expanding the UGB gives developers, councils and infrastructure providers options – and options are essential if we are serious about delivering homes for Tasmanians.
“Years of constrained and inconsistent land release had contributed to rising prices, delays, and a growing gap between demand for homes and the number of new dwellings being brought to market,” Mr Heckel said.
“Tasmania is experiencing real and ongoing housing pressures. We cannot improve affordability or meet demand without increasing the pipeline of land suitable for development.
“Unlocking more land is not just helpful – it is essential.”
Concerns raised about the potential for ‘oversupply’ do not reflect the experience of Tasmanian families competing for scarce housing opportunities, nor the challenges faced by builders seeking to maintain a steady workflow.
Recent ABS figures reveal that Tasmania is currently building less than half the homes required to meet its commitments under the National Housing Accord.
“For people trying to buy a home, or even find a rental, the idea of a housing ‘glut’ simply doesn’t match reality. Tasmania has thousands of people in need of suitable housing, and the building industry has been hampered by a lack of land coming forward. Increasing supply is the only sustainable path forward,” said Mr Heckel.
Mr Heckel said the message from the industry is clear: “More land means more lots, more investment and more homes. That’s what Tasmania needs, and that’s what this decision helps deliver.”
The region's finest in residential building and renovation will be recognised tomorrow night as the 2026 HIA-CSR ACT and Southern NSW Housing, Kitchen & Bathroom Awards are held at Parliament House in Canberra.
HIA warns that proposed national construction standards and new procurement rules miss the mark and land hardest on home builders.
“Skilled trade shortages remain widespread across Australia, with demand for workers supported by the recovery in home building activity over the past year,” stated HIA Senior Economist Tom Devitt.
The Housing Industry Association (HIA) has welcomed the passage of the ACT Government’s latest planning legislation, saying the reforms will help reduce delays, streamline approvals and support the delivery of more homes across Canberra.