Page 4087 - Week 13 - Thursday, 6 December 2007
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . .
Ginninderra Ponds. In Dunlop there are still some 50 residential blocks for immediate sale.
In Molonglo, the government is continuing to work towards the first release of land in the Molonglo Valley during 2008. The Molonglo Valley will eventually offer housing for over 70,000 residents and set new standards in suburban design and development. Concept planning for suburbs 1 and 2 in Molonglo is currently underway. The government is aiming to have the first blocks released in north Weston in 2008-09.
It is important, as we focus on the government’s release mechanisms, that we also acknowledge that land is already in the builders’ and developers’ pipelines. The builders’ pipeline indicates the supply of serviced dwelling sites that are awaiting construction, under construction or completed and unoccupied. The developers’ pipeline refers to the supply of dwelling sites that are in the hands of developers. The pipeline includes land where an estate development plan has commenced and land that is either awaiting servicing or being serviced. The number of dwelling sites in the builders’ pipeline is 2,974, with 4,950 in the developers’ pipeline. This means that the number of blocks currently held by builders equals some 3.5 years demand for new single dwellings while the number of multi-unit dwelling sites is equal to 1.9 years worth of demand.
The government will continue with its accelerated land release program, but it will do so with appropriate monitoring and in a responsive and responsible manner.
While the discussion to date has focused on land release, I would assert that the issue of housing affordability is a much more complex matter, and the problems being experienced by some households in the ACT cannot simply be blamed on short-term land supply issues. Reasons for rental increases are complex and many, but a central driver is market cycles of supply and demand.
Figures released by the ABS on 4 December 2007 indicate that the estimated resident population grew by 1.7 per cent for the year ended June 2007, the highest annual growth rate since March 1993. The strong growth in population reflects the excellent employment prospects currently enjoyed in the ACT, as well as efforts by the ACT government to attract workers through the skilled and business migration program and Live in Canberra.
Despite this high level of population growth, the ACT’s rental vacancy rate is the highest in the nation. According to the REIA, the rate was 2.4 per cent in June 2007. Declining housing affordability is a major policy issue that is confronting governments all around Australia—indeed the world.
The housing and rental markets continue to be tight, with demand being driven by strong economic growth and continued expansion of the commonwealth public service. On this last point, I mention that the most disappointing factor surrounding the large employment growth in the commonwealth public service in recent years was a lack of consultation with the ACT. This has made it very difficult from a planning perspective to achieve the most appropriate land release strategy and subsequently places enormous pressure on the affordability of housing in the ACT.
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . .