Page 1712 - Week 05 - Tuesday, 3 May 2011
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levels. Residential building approvals are significantly above long-run averages while dwelling commencements and completions are recording the strongest growth in more than ten years.
We have seen increases in residential property prices of just over 7 per cent, a 47 per cent increase in residential building approvals and annual growth in dwelling commencements of almost 38 per cent.
The ACT housing market continues to provide an attractive investment option due to a tight rental market, gains in house prices and a stable labour market.
Above average population growth continues to drive demand for new and existing homes.
Although it’s expected the housing market will soften somewhat during 2011-12, the market is still forecast to grow at sustainable levels. Increases in housing supply, higher interest rates and the withdrawal of Commonwealth stimulus measures will see first home buyer activity return to long-run average levels, however, non-first home buyer activity still remains at high levels due to our strong population growth and favourable investment environment.
Affordability is clearly not an issue for many ACT residents. For others, however, it is a major concern and one the Government shares. This Budget will deliver more affordable housing for Canberrans. The ACT Government is continuing to invest in student accommodation and community housing, release more land and investigate new models of meeting the challenges of housing affordability in a prospering city.
Mr Speaker, while all governments are struggling to address housing affordability, in the ACT we are providing real and practical options for people seeking to purchase or rent a home, or who are homeless. This Government is continuing to implement its Affordable Housing Action Plan, which is recognised across Australia and internationally.
In 2011-12 the Government will release 5,500 dwelling sites and a total of 18,500 over the next four years. As a result of the accelerated residential land release program, housing supply has significantly increased.
Additional funding of $1.6 million over four years will establish an inventory of release ready land to deliver affordable housing in green field areas. Land release and supply continue to be key Government responses to affordability.
Further land is being released in Ngunnawal for aged care, a pressing area of housing need, with funding of $2.4 million allocated.
A rolling program of master plans is being implemented with funding of $4.2 million. This will assist the Government identify future opportunities for land release.
Significant funding of $44.5 million over two years is provided to support necessary infrastructure including water and stormwater for initial land releases in Stage Two of
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