AN announcement that the ACT Government has reversed its decision to develop half the new Molonglo Valley suburb of Denman Prospect and instead put it back on to the market for sale to the private sector has been welcomed by the Property Council of Australia.

The Property Council of Australia’s ACT Executive Director, Catherine Carter, says that reopening the market to competition will achieve the best outcomes for the people of Canberra.

“For some time now, the Land Development Agency (LDA) has effectively locked private sector investment out of the market, preferring instead to act as the monopoly greenfield residential developer in the Territory.

“This position was a reversal of a previously long held policy which had worked well for government, the community and for industry, whereby a third of land was released for outright englobo sale, a third undertaken by joint venture, and a third undertaken by government via the LDA.

“The problem with government being the monopoly developer means a lack of competition, and a lack of housing choice.

“Accordingly, the change in policy signaled by the LDA in making Denman Prospect available once again to the private market is very welcome.

“While Denman Prospect will be challenging to develop because of the topography, it is pleasing to see that the LDA are prepared to be flexible in order to encourage innovation, and open to a range of options including joint ventures, part buys and consortiums.

“While we are yet to see the detail, we are pleased to note that blocks will be sold with the intention of providing affordable housing. This is an important component, and it continues to be important that the Territory work to provide affordable housing as a long term strategy for the city,” Catherine said.