Page 2960 - Week 10 - Thursday, 15 August 1991
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MINISTER FOR THE ENVIRONMENT, LAND AND PLANNING
LEGISLATIVE ASSEMBLY QUESTION
QUESTION NO 451
Residential Land Prices
Mr Kaine - asked the minister for the Environment, Land and Planning
How does the Minister explain the contradiction (The Canberra Times, 17/6/91) between his comments: "Ive noted the higher prices at Gungahlin, but Im informed theyre prime sites ... and thats a factor in the price" and the remarks of Mr Languor MHO: "A year ago blocks could be bought in Tuggeranong from the ACT Administration for $23,000 to $40,00. Now the developers are talking of charging $50,000 to $60,000 for blocks at Gungahlin.
Mr Wood - the answer to the Members question is as follows:
In 1989-90 the cheapest land sold by the ACT Government was for $27,400 for a standard block in the suburb of Isabella Plains.
The ACT Government also sold land in Tuggeranong which sold for a higher price than the land currently being offered for sale by private developers in Gungahlin. For example a block in Bonython was sold for $60,000 in May 1989 and in March the same year a block in Fadden sold for $73,500.
This simply demonstrates that there are many factors influencing the price that people are willing to pay. These factors may include: proximity to a Town Centre and/or an employment node; proximity to open space; the perceived exclusivity of a particular area; the perceived potential for capital gain or resale value and many more.
It is true that the initial releases of land in Gungahlin is prestigious land, however, as with all districts of Canberra there will be a mix of higher and lower value land and this should be reflected in lower selling prices in future Gungahlin developments.
While there are some blocks in the initial Gungahlin releases of $50,000 - $60,000 there have been a number of media advertisements for sites from $39,500, which I understand are for cottage blocks.
2960
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