Property Council ACT & Capital Region Executive Director Ashlee Berry said the Government's priorities align with long-standing calls from the Property Council, including a focus on more homes around transport and local centres, a stronger land release pipeline, and a Construction Productivity Agenda to streamline planning and building.
However, new ABS data shows there were just 91 new dwelling approvals in the ACT in September, down from 563 in August. Over the last 12 months, total approvals reached 3,365, well short of the monthly average of around 500 needed to be on track to meet the ACT's housing target of 30,000 new homes by 2030.
"Last week's announcement is a positive step by Minister Steel, and the priorities are right - but as today's ABS dwelling approvals for September show, the pipeline for housing is so fragile and we've no time to waste," Ms Berry said.
"We need to fix the cost and coordination barriers and turn these priorities into action quickly to restore confidence and lift approvals."
Ms Berry said lower approvals today would flow through to starts and completions next year unless feasibility improves.
"Last financial year, housing starts fell by more than 50 per cent and completions also dropped. Approvals are the canary in the coalmine for housing starts and completions, and Canberra won't meet its targets if feasible projects never leave the drawing board," she said.
The Property Council is calling for a practical delivery package to match the government's new planning priorities.
"The Government deserves credit for its planning leadership – the next step must be delivery. We need to fix Lease Variation Charges (LVC), clear post-approval delays and support smaller builders to get into the market," Ms Berry said.
"Right now, LVC is tipping otherwise viable projects over the edge. Targeted remissions and recognition around centres and transport corridors, a simple capped schedule for common lease variations, and reinvesting LVC back into local upgrades would bring shelved projects back to life.
The Property Council will bring government, industry and community leaders together at the Capital Region Housing Summit on 20 November to focus on the practical solutions Canberra needs, from LVC reform and faster post-approval processes to financing, skills and infrastructure coordination.
