A key trend gaining momentum among Commonwealth and State Governments involves increasingly prioritizing the identification, redevelopment, and utilization of excess or underused public land to tackle Australia’s escalating housing deficit. This strategic pivot is fueled by rising housing affordability crises and supply constraints nationwide. Housing now stands as a critical social and economic concern for governments, characterized by declining affordability, tight rental markets, and supply lagging behind demand.
Data points on the housing gap
New mortgage repayments consume 45.9 percent of median household income. It takes an estimated 11.2 years for the average household to save a home deposit. Australia has a national target to deliver 1.2 million new homes which has been in place since 2024 and runs through 2029. Current forecasts indicate approximately 980,000 homes may be delivered during that period, highlighting a significant supply shortfall. Australia has approximately 430,000 social housing households and more than 200,000 households are currently on social housing waiting lists.
Strategic use of property portfolios
Against this backdrop, governments are increasingly viewing their property portfolios not simply as operational assets, but as strategic tools for delivering broader housing, community and economic outcomes. Land that was once retained for future operational requirements, historical purposes or legacy uses is now being reassessed through the lens of housing delivery, urban renewal and economic development.
A recent and highly visible example is the ACT Government’s acquisition of part of the former CSIRO Ginninderra Experiment Station. The ACT Government has agreed to purchase 243 hectares of the site for $385 million, enabling the future delivery of more than 3,000 homes, including affordable, public and community housing. The acquisition is intended to support the ACT’s target of enabling 30,000 new homes by 2030 while creating a new master-planned community in Canberra’s north.
This transaction reflects a broader trend occurring across jurisdictions. Rather than relying solely on private sector land supply, governments are increasingly looking inward at their own property holdings to identify opportunities for redevelopment, intensification and divestment. In many cases, surplus government land is located in well-serviced and strategically positioned areas close to transport corridors, employment centres and existing infrastructure, making it particularly attractive for residential development.
We are also seeing governments undertake large-scale property audits and land reviews to determine where assets may be underutilised or no longer aligned with contemporary service delivery requirements which we have seen and noted with Department of Defence. These reviews are often driven by changing workplace practices, service transformation programs and more efficient utilisation of government accommodation. As a result, internal property strategies are increasingly focused on optimising asset portfolios, reducing surplus holdings and activating land for alternative uses.
Leave a Reply