Canberra multi-unit builds far outweigh standalone houses, housing data reveals

The number of new apartments and townhouses under construction in the ACT in the last financial year outweighed the building of standalone houses almost four to one, according to data released by the Housing Industry Association.

A predicted tumble in the number of unit commencements in the 2016-2017 year won’t be enough to close the gap.

Construction began on 3840 multi-unit dwellings in the 2015-2016 year compared to 1010 houses, according to the association’s latest Housing Scorecard.

The data represents 53 per cent jump in multi-unit builds compared to a 34 per cent drop in the number of new houses under way, compared to the same period a year earlier.

By mid-2017, the number of apartments and townhouses that have begun construction is forecast to fall by 31 per cent to 2660.

The number of houses expected to be built from scratch is expected to jump by 58 per cent to 1590.

The association’s ACT and southern NSW executive director Greg Weller said the territory topped all other capital cities for the approval of multi-unit dwellings in the 2016 data but had the least number of standalone houses under construction.

“Unfortunately the ACT is dead last for commencements of detached dwellings, which is a real disconnect from the fact that sales of established homes are performing so well,” he said.

“Clearly consumers in the ACT want to buy detached homes, but there is just not the supply of land at a reasonable price to allow them to do so.”

The disparity has pushed the territory to fifth place on the association’s scorecard, which compares states and territories based on housing market performance.

It also reflects that more than 80 per cent of the ACT government’s release of land in recent years was for apartments and townhouses.

Liberals planning spokeswoman

Shadow minister for planning and development Nicola Lawder said the ACT figures highlighted a “poor mix of land supply in the territory”.

“The relatively low starts for new detached dwellings is a real concern for home buyers in the ACT,” she said.

“The Labor-Greens government needs to consider their land release program to offer greater choice for home buyers, particularly first-home buyers.”

But Minister for Housing and Suburban Development Yvette Berry said the the latest report did not tell the full story.

“The government plans its land release program to consider the range of needs from the across the community. We do this with a long-term planning view, and our release plans seek to reflect identified need and market trends,” she said.

“We know that our community wants a mix of housing types to be on offer – from single stand-alone dwellings in the suburbs through to the multi-unit developments in our town centres and city.

“The sites that we release are determined by a number of factors including the government’s commitment to densification through urban renewal to create a more sustainable city where people can live closer to employment opportunities, entertainment options, great public transport and other amenities.”

Ms Berry said there was a growing desire in recent years to live near transport corridors, such as Flemington Road.

She said greenfield developments in new suburbs including Ginninderry (West Belconnen), Throsby, Taylor, Jacka, Wright, Coombs, Whitlam and Denman Prospect would cater for Canberrans looking for land opportunities.