Water price increases add further pressure to housing and development costs in the ACT
Rising water and sewerage charges in the ACT will add to the cumulative cost pressures facing property owners, renters, and new housing projects, despite a modest reduction in some development infrastructure charges, according to the Property Council of Australia.
The Independent Competition and Regulatory Commission (ICRC) today announced increases of around 6-7 per cent to regulated water and sewerage prices for 2026-27, with a typical household set to pay an additional $91 per year.
For commercial and other non-residential properties, bills will rise by between 6.0 and 6.8 per cent, depending on water usage and building characteristics such as the number of amenities.
ACT & Capital Region Executive Director Ashlee Berry said the increases highlighted the ongoing cost escalation across essential services impacting the property sector.
"These additional costs couldn't come at a worse time.
"While no single increase is significant in isolation, the increases will add to the cost of delivering and operating property in Canberra, already under considerable strain," Ms Berry said.
"Water and sewer charges are rising at the same time as interest rates, construction costs, insurance and taxes," she said.
The increase will come into effect from 1 July 2026, with annual combined water and sewerage bills for a typical household rising by 6.3 per cent.
"Higher operating costs for landlords and owners inevitably place upward pressure on rents and housing affordability over time," Ms Berry said.
"In a market already facing tight supply and affordability challenges, every additional cost matters."
Ms Berry said, in better news, the ICRC had reduced the precinct infrastructure contribution charge to $920 per equivalent population, down from $961 in the previous year.
"We welcome the modest reduction in the precinct charge, which will provide some limited relief for developments in applicable areas," Ms Berry said.
"However, this is outweighed by broader increases in utility costs and ongoing system reforms that are adding complexity and cost to projects."
The report confirms that rising prices are partly driven by ongoing reforms requiring individual water metering in new multi-unit developments, which are being progressively implemented across the ACT.
"The rollout of individual metering is an important policy reform, but it does come with additional upfront costs and delivery implications for new housing projects," Ms Berry said.
"These types of cumulative regulatory and infrastructure requirements must be carefully managed to avoid undermining housing supply."
Ms Berry said the Property Council supports investment in essential infrastructure and water security but urged governments and regulators to remain focused on affordability outcomes.
"Canberra is facing a clear and urgent need to deliver more housing supply.
"That requires a coordinated effort to keep cost escalation under control across all parts of the system - including utilities, taxes, and regulatory requirements.
"We need a balanced approach where infrastructure is funded, but where projects remain viable and homes remain affordable.
"We'll be closely monitoring next week's ACT Budget for measures that support housing delivery by reducing cost pressures on new housing development," Ms Berry said.
