The ACT Government has agreed to buy 243 hectares of a former CSIRO agriculture research site at Ginninderra East for $385 million over eight years, paving the way for a new suburb with more than 3000 homes.

The agreement between the ACT Government and CSIRO is part of efforts under the National Housing Accord to increase housing supply.

The government said the site, between Belconnen and the Barton Highway, is expected to deliver more than 3000 homes, including about 15 per cent set aside as affordable, community and public housing. The new suburb will be planned in consultation with the community and include transport links, local services and sustainability measures.

The purchase has drawn mixed reactions, with industry groups welcoming the long-awaited agreement while the Canberra Liberals argue the development falls well short of its potential.

Opposition Leader Mark Parton said a 2021 ACT Government scoping study suggested the wider Ginninderra site could accommodate about 8000 homes.

“We started this conversation talking about a new town. We have ended up with one suburb,” Mr Parton said.

He questioned whether any homes would be completed on the site by 2030, saying the government needed to demonstrate it could release the land quickly rather than “bank” it.

Mr Parton also called on the government to clarify what mix of housing would be built, arguing there was strong demand for freestanding family homes.

The Property Council of Australia welcomed the acquisition, describing it as one of the ACT’s most significant housing-enabling land transactions in recent years.

ACT and Capital Region executive director Ashlee Berry said the purchase created a rare opportunity to masterplan a new community within Canberra’s existing urban footprint, close to established infrastructure, services and employment centres.

Master Builders ACT also backed the deal, with chief executive Anna Neelagama saying the focus should now be on bringing land to market as quickly as possible.

She said delivering up to 3000 homes would help ease housing supply pressures while creating work for local builders, subcontractors and suppliers, and urged both governments to ensure the project proceeds without unnecessary delays.