A performance audit of the ACT’s residential land supply and releasing has found that Government Agencies have implemented effective processes.
In his Audit 4/2020 Residential Land Supply and Release, Auditor-General Michael Harris says the amount of land released has exceeded anticipated demand with the excess taken as an affordability measure and establishing an inventory of land.
“In the three years between 2016-17 and 2018-19, the Suburban Land Agency (and its predecessor the Land Development Agency) has released land for up to 12,420 dwellings,” Mr Harris said.
“While this land has been counted as ‘released’, because it has been offered to the market, it may not necessarily have been sold however,” he said.
“The Suburban Land Agency has identified and reported the financial implications of not selling land for residential purposes as expected, namely lower revenues received from lower land sales.”
Mr Harris said a key action of the ACT Housing Strategy (2018) was to dedicate at least 15 per cent of the Indicative Land Release Program each year to affordable, community and public housing.
“Although land has been released for affordable housing purposes, there has been poor take-up of this land to date,” he said.
“This is likely to be a reflection of affordable housing land releases thus far being primarily one or two bedroom units, while the majority of eligible purchasers are seeking three bedroom dwellings and single houses on compact blocks.”
The audit made seven recommendations including calls to improve the utility and transparency of ACT Land and Property Reports; modelling for the development of the Indicative Land Release Program; and managing the Affordable Home Purchase Program.
The Auditor-General’s 113-page report can be accessed at this PS News link and the audit team was John Guilfoyle, David Kelly and Laura Thomas with the support of Taylah Commisso.
