Page 2328 - Week 08 - Wednesday, 5 June 2013
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is evidence that simply fuelling the demand side without providing a supply-side stimulus does just push prices up. If you just put more money into the economy, chasing the same number of houses, you will see price inflation. So we are very clear in making this policy change that we wish to encourage additional supply in the marketplace. I think that is an important thing to seek to do with any demand-side stimulus.
I think it is fair to observe, also, that, in the context of this new west Belconnen development, many of the blocks will be eligible for the home owner concession scheme, which reduces the amount of stamp duty that is paid to just $20, saving those purchasers around $13,000 or $14,000 in stamp duty, depending on the value of the house and land package, for example. What the government has achieved through the retargeting of the first home owner grant is to make a saving and to apply that saving to further reduce stamp duty.
There is a variety of ways to reduce stamp duty through the ACT budget. In addition to those targeted incentives, the government is cutting stamp duty on every single property in the territory. It has been lowered again this year and will be lowered again each year that I am Treasurer.
I think this west Belconnen development is a timely announcement—a shot in the arm, if you like, for the construction sector. Construction and building are a major employer in our city and a significant economic driver. The building of necessary infrastructure and the construction of new homes are always a great employment generator in our economy, and the multiplier effect with the purchase of new household goods associated with people moving into new homes is a boost across the territory economy.
The development area in question is two kilometres from Kippax, six kilometres from the Belconnen town centre and 13 kilometres from the CBD. It is closer to the CBD than many existing parts of the urban development footprint within the territory. At this distance, the development is essentially a form of infill for Belconnen, that part of Belconnen, and will stimulate commercial and community activity in and around this area.
The project also addresses demand for affordable detached housing blocks of sufficient size to attract young families. It will certainly reinvigorate the area’s demographic profile, which is ageing, and will provide the impetus for infrastructure and community facility renewal, particularly in Kippax. The market price for many of the blocks in the more affordable range will be around the $220,000 mark, making them significantly cheaper than elsewhere in the city. And with an average size across the development of around 400 square metres, these blocks will be especially welcome for people looking to have a backyard.
The west Belconnen project is an extension of the existing urban area. It provides a third development front within the territory, in addition to the remaining suburbs in Gungahlin and the Molonglo valley estate. It is well located and well suited to urban development. The land release program in the budget anticipates the release of just over 16,000 sites over the four years to June 2013, an increase of 51 per cent over the previous four years, in which just under 10,800 sites were released.
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