ACT to assess impact of urban growth boundary on housing

Summarised from 2 outlets · Updated 1 Nov, 23:14 · Archive

The ACT Government will examine whether a proposed urban growth boundary could push up house prices and restrict housing supply.

The ACT Government has committed to examining whether its proposed urban growth boundary could push up house prices and restrict housing supply. The assessment, due in June 2027, will assess the impact of limiting Canberra's outward expansion as the government seeks to protect surrounding bushland and environmentally sensitive areas.

Independent MLA Leanne Castley raised concerns in the Legislative Assembly that restricting new suburban developments without building enough homes in existing suburbs could worsen Canberra's housing crisis. She told the Assembly that in 1981, a Canberran earning the median income could buy a typical home for around two-and-a-half years of earnings. Today, it would take more than seven years.

Ms Castley fears an urban growth boundary could further restrict the supply of detached homes and properties with three or more bedrooms, particularly if higher-density development fails to keep up with demand. She acknowledged the need to protect environmentally sensitive areas but said the government should examine the costs and benefits before legislating the boundary. 'While the intention is to replace greenfields projects with urban infill, I'm not confident that the territory will be able to deliver enough new dwellings to keep up with demand,' she said.

How it is being reported

• Another rate rise set to weigh down Canberra’s falling house marketOn the eve of another interest rate rise, new data shows Canberra’s house prices continuing to fall, but those for units and townhouses stabilising or at least pausing. The Cotality Home Value Index for October has the overall Canberra market down 0.7 per cent, but detached houses fell a further 1 per cent, while other […]Region Canberra · 1 Nov, 22:59
• Is the urban growth boundary pushing up house prices? We’re going to find outThe ACT Government has agreed to examine whether its proposed urban growth boundary could push up house prices and restrict housing supply, following concerns raised in the Legislative Assembly. The assessment, due in June 2027, will examine the impact of limiting Canberra’s outward expansion as the government seeks to protect surrounding bushland and environmentally sensitive […]Riotact · 1 Nov, 01:05

In this story: ACT Government · Leanne Castley · Canberra

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