The Property Council of Australia has backed the ACT Government's move to reset its infrastructure program, but warned that certainty, sequencing and strong conditions for private sector investment will be critical to maintaining jobs, housing supply and industry capability.
Property Council ACT & Capital Region Executive Director Ashlee Berry said the shift reflected the fiscal realities facing the Territory Budget and the significant construction cost escalation experienced in recent years.
"Recognising the impact of cost escalation and the need for a more financially sustainable infrastructure pipeline is a necessary step," Ms Berry said.
"But delaying projects cannot be allowed to lead to lost momentum and lost certainty in the pipeline. Every decision about infrastructure timing has a direct impact on housing supply, investment confidence and jobs."
The Territory will seek to save $700 million over four years by pushing back major projects as part of a broader recalibration of the capital works program.
Ms Berry said it was important to distinguish between broader financial pressures and cost escalations facing the construction sector, and industry capability.
"The local construction industry does have capacity and wants to continue delivering projects across housing, commercial development, transport and social infrastructure," she said.
"What industry needs now more than anything is certainty – certainty around timelines, sequencing and the Government's long-term priorities."
Ms Berry said deferred projects must remain on the agenda and be supported by transparent delivery pathways so businesses can continue making decisions around investment, workforce retention and training.
"The greatest risk is creating a stop-start pipeline that undermines confidence and sees skilled workers and specialist capability moving interstate," she said.
"If the public sector pipeline is slowing, the ACT Government must make sure the right conditions exist for the private sector to continue investing and delivering projects right here in the ACT."
"This means we need to see a strong focus on planning efficiency, timely approvals, infrastructure coordination and policies that support project feasibility and housing delivery.
"With Canberra facing ongoing housing pressures, it is essential that infrastructure sequencing supports growth – particularly in key areas like Molonglo, urban intensification corridors and transport connections across the ACT and Capital Region."
Ms Berry said major city-shaping projects including the Northside Hospital and the Convention Centre would continue to play an important role in Canberra's long-term economic productivity and liveability.
"These are transformative investments for the Territory. Maintaining momentum and providing clarity around future delivery remains essential."
She also welcomed the ACT Government's increased focus on renewing and upgrading existing infrastructure, saying it would provide important continuity for local contractors and suppliers.
"A stronger focus on asset renewal can help smooth the construction cycle and create steady opportunities for local industry, but it must complement – not replace – the delivery of new infrastructure that enables growth and housing."
Ms Berry said the Property Council looked forward to working with the ACT Government on the updated infrastructure plan and the broader policy settings needed to sustain a healthy development pipeline.
"This reset is an opportunity to strike the right balance – a program that is realistic and fiscally responsible, while still supporting investment, housing supply and long-term economic growth for Canberra."
