As the buyback and remediation of Mr Fluffy asbestos homes continues, the government expects a record $770 million deficit this year. But Mr Barr said the budget, due to be handed down on June 2, will include support for activity in Canberra's town centres and group centres as well as infrastructure upgrades.

Speaking at the opening of the government's new office block in Gungahlin, Winyu House, Mr Barr he would look to work with the community and private sector to "leverage investments".

Residents could expect to see improvements similar to recently completed upgrades of local shops at Aranda and Chapman.

He said the plans were not related to regional opposition to the government's $800 million light rail project, linking Gungahlin to the city.

"It is important to recognise that different parts of Canberra are at different stages of their development. I think people understand that in a brand new area that has no infrastructure or facilities at all, it's not unreasonable for the government to invest," Mr Barr said.

Strategic investments by government would be boosted by private spending.

"We are very conscious of decisions we can take at a territory government level that can offset decisions the Commonwealth has taken to pull out of certain areas but also that we can deliver better services to the community from a number of different locations.

"There's been announcements so far on Tuggeranong, Woden and Gungahlin. We're obviously optimistic that Immigration will remain in Belconnen, that would be a good outcome.. and we have some CBD renewal plans as well."

Winyu House is set to host more than 650 territory public servants and includes the first customer service centre as part of the Access Canberra program, new offices for the Shared Services division and a childcare centre.

Mr Barr said the site would provide Canberrans with one-stop access to a range of government services and only cashless payments.

The government has already announced $1.3million over four years to increase mobile speed cameras in the ACT and $11m for the Canberra Institute of Technology campus in Tuggeranong.

Property Council of Australia ACT executive director Catherine Carter said ahead of the territory budget, a brighter economic outlook for Canberra was developing.

She welcomed market indicators from a new report showing a boost to housing supply but called for more work on the ground in Canberra.

"Almost 50 per cent of all new housing commencements have been in Sydney and Melbourne. We need to boost the supply of new dwellings in Canberra to ease pricing pressure and improve affordability.

"The impact of Canberra job losses has hurt residential demand – but with public service cuts now largely over, we expect that activity should pick up, particularly on the back of record-low interest rates and improving foreign investment in new dwellings."

On Thursday, opposition environment spokeswoman Nicole Lawder criticised the government's budget funding announcement of $7.8 million over four years for the Lower Cotter water catchment.

Announced after the release of a critical new report by Auditor-General Maxine Cooper, Ms Lawder said the government should not lose focus on protection of Canberra's water security.

"This report highlights that proper management is needed to reduce the risks.

"While the Auditor-General has identified significant achievements that have been made in some areas, there is still much to be done to protect our water security. The government cannot lose focus in this area," she said.