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Building approvals up: Affordable Housing plan working

Released 07/04/2008

124/08 7 April 2008

New figures released today show that the ACT recorded the largest increase in building approvals, at 13.2 per cent, year-on-year, suggesting that the ACT Government’s Affordable Housing Strategy and Action Plan is working, Chief Minister Jon Stanhope said today.

According to the Australian Bureau of Statistics figures, the national average in building approvals, year-on-year, grew by 3.2 per cent, and was down 1.0 per cent during February 2008.

During February, the ACT recorded the second highest increase in building approvals, rising 5.8 per cent. The number of houses approved increased from 68 in January 2008 to 90 in February 2008. The number of other residential dwellings, such as townhouses and apartments, increased from 49 in January to 122 in February 2008.

Building approvals are a lead indicator of the housing market activity. The strong growth suggests continued high level of activity through the rest of the year.

“In February, there was $65.8 million worth of new residential building activity approved. This is a sure sign in the strength and confidence in the ACT economy.

“The rise in building approvals over the year shows that the ACT Government’s accelerated land supply program – part of the Affordable Housing Action Plan – is working,” Mr Stanhope said. “In 2007-08 the ACT Government increased the release of land by an additional 1,000 blocks.

“The ACT remains the most affordable capital city in Australia to own your own home in, with just 21.1 per cent of the average family income devoted to meeting average home loan repayment, compared with 34.7 per cent over the border in NSW, and 37.4 per cent nationally.

“The ACT Government remains committed to ensuring that all Canberrans have access to safe, secure and affordable housing, which is why last April we launched the Affordable Housing Action Plan.

“While, there is no quick fix to the housing affordability crisis being felt across the nation, the ACT Labor Government is continuing to work to achieve its commitments laid out in the Action Plan.”

Within the first year of the Affordable Housing Action Plan, the ACT Government has:

· Increased the supply of land by an additional 1000 blocks to a total of 3,200 this financial year;

· Streamlined land release and approval processes, and introduced englobo releases;

· Mandated the delivery of house and land packages priced between $200,000 and $300,000;

· Provided more generous concessions, to help more Canberrans buy a home;

· Invited institutional investors to provide affordable private rental accommodation;

· Boosted community housing with an equity injection of $40m and a loan facility of $50m;

· Ensured that better and more targeted use is made of public housing;

· Released two demonstration projects to showcase affordable land and housing packages; and

· Funded a design award for excellence in affordable housing.

Media Contact: Penelope Layland 6205 9777 0438 289 714 penelope.layland@act.gov.au