The blame game for Canberra’s lack of housing affordability continues, with the Liberals pressuring the ACT Labor-Greens Government to act, while the local government claim it’s the Commonwealth’s fault.
In the wake of the ACT Government’s Budget Review for 2021-22, released on 24 March, Canberra Liberals leader Elizabeth Lee said she was “incredibly disappointed” to see a lack of initiatives to address skyrocketing house prices.
“The Labor-Greens Government’s own Budget Review even acknowledges that if the demand for land is higher than supply, prices will rise,” Ms Lee said.
“Tens of thousands of Canberrans are lining up for only a few dozen blocks of land for detached housing and are subsequently seeing their dream of owning their own home slip away.
“It is clear there is a significant gap between supply and demand for detached housing in the ACT.”
Ms Lee said the ACT Treasury stated that to relieve the pressure on land prices, an urgent supply response is necessary.
“This Labor-Greens Government has been told by Treasury that restricting land supply is driving up prices, and yet they refuse to take action. It is not a silver bullet fix because housing affordability is a complex issue, but unlocking more land for the tens of thousands of Canberrans who want the opportunity to own their own home is a good place to start,” she said.
“We know that Labor is wedded to an infill policy that does not service the community’s needs and wants at the behest of the Greens, and it is Canberrans who are suffering the consequences of being priced out of the housing market.
“Making Canberra an affordable place to live with genuine housing choices should be a priority in the midst of a housing crisis but Labor and the Greens are not interested in taking any responsibility or using the policy levers in their control to give Canberrans the dream of owning their own home.”
Earlier in the week, Canberra Daily sought responses about Canberra’s housing affordability crisis, and an ACT Government spokesperson said the rise in house prices is the responsibility of the Commonwealth Government.
“The suggestion that land supply is driving price increases is simply not correct. House price increases since the COVID-19 pandemic have been driven by record low interest rates and tax incentives for investments in property, each of which are the responsibility of the Commonwealth Government,” the spokesperson said.
“That’s why over the border in NSW – and across the whole country – property prices are on the rise.”
The spokesperson said that in the Indicative Land Release Program (ILRP) accompanying the budget, the ACT Government’s target is to release land for 16,434 dwellings.
“The ACT Government is responding to unprecedented circumstances following the COVID-19 pandemic, and is using all of the policy tools available to help deliver on its ILRP and support affordable housing,” they said.
“The Commonwealth Government has responsibility for a number of primary levers that could be used to address housing affordability; nonetheless, the ACT Government is committed to increasing the supply of more affordable homes and supporting Canberrans to access the housing market.”
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