Property Council ACT & Capital Region executive director Ashlee Berry says it’s getting harder, not easier, to deliver homes in Canberra. Photo: Ian Bushnell.
A drop in home completions and building starts during the March quarter has the sector calling for more concessions and one political party stating this proves the Territory needs a government-owned housing developer.
Australian Bureau of Statistics data showed 714 homes were completed in the March quarter, down from 1278 in the previous quarter.
Building starts dropped 40 per cent on the previous quarter, down from 717 to 427 homes.
Property Council ACT & Capital Region executive director Ashlee Berry said the numbers confirmed what builders and developers had been saying for months: that projects weren’t stacking up.
“Approvals are down, commencements are down, and confidence is low. The message from the industry is simple: it’s getting harder, not easier, to deliver homes in Canberra,” she said.
“We’re now seeing the pipeline dry up just as the city faces its most ambitious housing targets in a generation. You can’t deliver more housing by making it more expensive to build.”
Ms Berry pointed the finger at the recent ACT Budget for making things more difficult, saying rising rates and land taxes were hitting the feasibility of projects and forcing delays or cancellations.
“The removal of differential rates and continued increases in commercial and residential rates are making marginal projects unviable,” she said.
“We are seeing bracket creep and cost layering with no clear policy direction – just more pressure on those trying to build.
“We’re ready to work with the government to get projects moving, but we need real changes, not just restructures. That means rethinking how taxes and charges are applied and backing in the industry with policies that support delivery, not punish it.”
Master Builders ACT CEO Anna Neelagama said it was concerning that building activity nationally had been rebounding while the ACT was declining.
“The current economic landscape, with low consumer confidence, delays in planning approvals, and extended build times, has created a challenging environment for construction. This is all compounded by a need for major investment in skills and training,” she said.
“Our industry continues to carry the weight of outdated planning systems, mounting red tape, chronic skills shortages, and growing regulatory burdens, all of which stifle building productivity and affect project completion.
“While Master Builders ACT recognises the recent commitments from the ACT Government in this area, more action is needed if we’re to get back on track.”
The ACT Greens have also weighed in, saying the housing approval numbers showed the “urgent need” for a government-owned housing developer.
The party took this idea to the last election, and leader Shane Rattenbury said it was still valid.
“The Greens commissioned independent modelling that showed how a government developer can help us avoid tradie shortages while providing housing at prices everyday people can actually afford, by offering steady, secure work through a consistent pipeline of public builds,” he said.
“If the government is serious about building affordable housing in Canberra – and I stress affordable – then it should be leading the charge by hiring and retaining its own workforce to build it.
“Without a plan to retain a workforce and ensure those homes are actually affordable to someone on the minimum wage, it’s really a drop in the ocean.”
A draft report from Pegasus Economics warned labour shortages could stop the ACT from reaching its housing target.
“While the total number of dwelling approvals has averaged around 5000 since 2010-11, approvals have been well under 5000 since 2021-22 and the final outcome for 2024-25 is likely to be well under 3000,” it stated.
“The ACT Government’s target of 30,000 new homes by 2030 is probably achievable based on recent history, [but] one potential obstacle that could emerge, if residential building construction picks up, is [the] emergence of labour shortages.”
The ACT Government rejected claims the housing construction pipeline was shrinking, calling it “robust”.
A spokesperson said its $145 million budget investment in housing included developing the future construction workforce, increasing training subsidies to 90 per cent for carpenters, plumbers, tilers, bricklayers and other critical housing construction trades.
“The stock of dwellings under construction remains elevated, noting it has fallen in recent quarters, albeit off a high base,” they said.
“Dwellings approved but not yet commenced also remain strong. As this stock of approvals is worked through, it is anticipated that dwelling approvals will start rising, ensuring the continuation of a healthy pipeline of building activity.
“This will be supported by easing capacity constraints and a lower interest rate environment in the coming years.”
The spokesperson pointed to development application (DA) data that showed the number of DAs lodged in the April-to-June quarter was higher than the previous one, and comparable to the equivalent quarter in the last financial year.
“Furthermore, there has been a steady increase in the number of DAs lodged for single residential projects over the June quarter, with 35 lodged in June 2025 – the highest for the 2024-25 financial year,” they said.
“As interest rates begin to ease, real wages grow and our population expands, building activity is forecast to increase over the forward estimates.”
