A recent Canberra Times report has revealed that the ACT Suburban Land Agency (SLA) has not met its targets for releasing sufficient land to support affordable, community, and public housing (Canberra Times, 2025).

The findings highlight the ongoing challenge of balancing government housing objectives with the practical realities of land supply, delivery, and demand within Canberra’s evolving property market.

Under the ACT Government’s Housing Strategy, the SLA is required to allocate at least 15 per cent of annual land releases to affordable and community housing. However, this target has not been consistently met in recent years, raising concerns about the flow-on effects for housing affordability and long-term supply.

Impact on the ACT Market

Canberra’s housing market remains under sustained pressure due to limited land availability, rising construction costs, and steady population growth. A slower release of serviced land is contributing to:

  • Tighter supply conditions and continued upward pressure on land and dwelling prices.
  • Reduced development feasibility for projects relying on lower cost allocations.
  • Extended delivery timelines, affecting the pipeline of new residential stock.

While private sector responses through infill and higher density developments continue, the shortage of new land releases risks exacerbating affordability pressures across both ownership and rental markets.

Looking Ahead

The ACT Government’s 2025–30 Housing Supply and Land Release Program aims to release sufficient land to support around 26,000 new homes over five years (ACT Government Planning, 2025).

The program emphasizes consistent delivery and alignment with infrastructure readiness, although timing and allocation of land for affordable and community housing remain key indicators to monitor.

Market Context

Land release patterns in the ACT directly influence local property values, development activity, and long-term affordability. For valuers, understanding these patterns provides critical context for interpreting market dynamics and informing land and development valuations.

 API Member Insight: What to Watch in 2026

  • Land Release Delivery: Monitor the pace and location of new releases under the 2025–30 program.
  • Affordable Housing Allocations: Track how the SLA’s 15% target is applied across future release areas.
  • Infrastructure Readiness: Servicing, transport access, and planning approvals will determine the feasibility of new land.
  • Market Flow-on Effects: Limited supply may sustain upward price pressure in key suburban corridors.

“The 2025–26 ACT Budget allocates $145.2 million to accelerate housing supply, affordability, and accessibility. Land release for nearly 26,000 homes across key suburbs, incentives for Build-to-Rent and Build-to-Rent-to-Buy developments and planning for more housing around urban hubs and transport corridors are central to this initiative”.

https://www.api.org.au/professional-development/knowledge-hub/act-budget-2025-26-housing-supply-affordability-and-market-impacts-for-valuers/