Property Council ACT & Capital Region Executive Director Ashlee Berry said extending Territory Priority Project status to public and community housing would speed up delivery and send a strong signal to the market.
"Fast-tracking public and community housing is the right call," Ms Berry said.
"It means projects that deliver homes for people who need them most will spend less time tied up in appeals and more time on site. That's exactly what industry has been calling for."
The Property Council previously backed the Government's decision to declare public housing and health infrastructure as Territory Priority Projects and urged in its submission for the Assembly to extend the framework to include community housing.
"Bringing community housing into the Territory Priority framework recognises what we heard loud and clear at the Property Council's Capital Region Housing Summit last month," Ms Berry said.
"Social and affordable housing providers are ready to deliver at scale, but they need a planning system that treats them as essential infrastructure and gets projects through the approvals pipeline quickly and predictably."
Ms Berry said the removal of ACAT third-party appeals for priority projects was a significant reform that would improve feasibility and help unlock more supply.
"Appeal risk is one of the factors that can tip a project from viable to unviable," she said.
"By reducing that risk for well-designed public and community housing, the Government is sending a clear message that it is serious about tackling the housing shortage."
Ms Berry said momentum on reform had been building at pace since the Capital Region Housing Summit, but that sustained follow-through would be critical.
"This is a strong step, but it can't be the last. If we want enough homes, we'll need continued action on planning, land release, charges and the broader settings that shape project feasibility.
"Today's announcement shows the Government is prepared to take on difficult reforms to remove roadblocks - but this is just one part of the pipeline. The next test is whether we see the same decisive and collaborative approach on approvals, infrastructure and taxes," Ms Berry said.
