News - Planning & development

We all know that when we buy (lease) land here in the ACT, it comes with a condition that construction must start within 12 months.

But like so many rules in the ACT (except car parking!) it isn't enforced. And the result is a lot of land (often in just a few hands like certain builders) hoarded up and helping drive up land prices even more.

But the plummeting housing affordability has spurred the government to do something about it. They are going to start auditing and issuing 'show causes'. Their media release follows.

AUDITS OF UNDEVELOPED BLOCKS TO LIFT HOUSING SUPPLY

13 November 2007

The ACT Government will employ an affordable housing compliance officer to audit undeveloped residential blocks.

Chief Minister Jon Stanhope said the officer would audit undeveloped residential blocks that had been purchased but not built on within the two years specified in leases.

'In Canberra, most construction on residential blocks must start within 12 months of the commencement of the lease and development must be completed within 24 months,' he said. 'Failure to build within this time requires property owners to explain their reasons and seek an extension of time, which attracts a fee.

'Expanding the auditing will hasten the development of land that has been sold for residential development, increasing the supply of housing to the market. It will also ensure that property owners  meet their legal obligations.

'The timeframes exist to ensure that development actually occurs, so there is no land speculation and consequently less pressure on the cost of housing.'

The expanded audit program will cover all residential blocks, which includes single homes as well as multi-storey apartments.

Mr Stanhope said an earlier audit of single residential leases had found that one developer owned 18 undeveloped blocks which had not been built on for over two years.

'That is unacceptable. Developers and others who hold on to undeveloped land will face new higher  fees, based on the value of the rates of the block. The new fees will be designed to encourage a much greater level of compliance with lease conditions.'