Newly released data shows the number of development applications lodged in key residential zones plummeted last year prompting architects and developers have sharpened their call for major changes to ACT planning laws
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The head of the Housing Industry Association in the ACT said the lack of medium-density housing would hit baby boomers hardest, as they would struggle to find places in which to downsize in, or near, their suburb.
Government figures showed there were 46 development applications lodged in the RZ2 zone in the year to June, a drop of 63 per cent from the 126 the previous year.
In the RZ3 zone, which allows three- or four-storey developments, there were just 10 DAs, down from 40 the year before.
HIA ACT/Southern NSW president David Fogg said he believed a glut of one-bedroom apartments was largely to blame for the RZ3 decline, but it was planning restrictions – in practical effect since July 2010 - which made more RZ2 developments unfeasible.
"There's still a desire and want for those sort of RZ2 developments, they just don't stack up under the current situation," Mr Fogg said.
Architect and HIA vice-president Glen Dowse said the results for suburbs would be dire if affordable downsized accommodation was not available for retiring baby boomers.
"If we fail on those, they stay in the existing homes, and our suburbs eventually die, we've got no kids to go into the schools," Mr Dowse said.
Mr Dowse said key changes should involve the cutting of the lease variation charges to levels similar to those in Queanbeyan, a removal of the dwelling replacement policy that requires part of a redevelopment to be based on the number of rooms in the demolished home, and the removal of the four-unit or townhouse maximum restriction for an RZ2 block.
The government agreed in principle last year to a Legislative Assembly committee recommendation to "reconsider RZ2 changes to make them more consistent with the goals of affordable housing and urban infill".
Planning Minister Mick Gentleman said the Environment and Planning Directorate had begun discussions with representatives of the development industry to better understand factors that discouraged urban intensification in residential zones.
"Redevelopment in [RZ2 and RZ3] helps to provide a greater diversity in the types of dwellings within each district in Canberra and therefore a decline in development within these zones is of some concern," Mr Gentleman said.
The minister said the directorate's scoping review into housing choices was expected to be completed in the second half of 2015.
DA numbers were stronger in the three months to October 1, with 32 RZ2 applications lodged and 9 in RZ3, but Mr Fogg said he doubted a year-long growth.
"I think it'd be lucky if [RZ2 lodgings] got to 50 this financial year," he said.
Tony Trobe, the immediate past president of the Australian Institute of Architects ACT, said the city had stagnated as a result of inadequate development, and residents had to be prepared to look at the big picture when specific projects were raised.