The ACT government says the capital's housing affordability crisis has divided the city into ''two Canberras'', split between winners and losers in the property market.
And Economic Development Minister Andrew Barr has flagged moves to impose even higher levels of affordable housing on the building sector in a renewed bid to tackle the city's great divide.
The minister may have set himself on a collision course with the region's house builders by flagging that he would prefer a slight oversupply of housing blocks in the face of hints from industry that the government should take its ''foot off the accelerator,'' on land releases.
Canberra's leading affordable housing entrepreneur says he disagrees with the government's two pillars affordable housing strategy - supply and distribution.
Mr Barr has told an Assembly committee that the city's housing market had created a divide between the double-income professional families who inhabited the top 50 per cent of the market and everyone else.
''Clearly, where there has been an undersupply in the marketplace has been at the affordable end of the housing market,'' Mr Barr told the multi-party committee.
''The best way to explain it is to say that there are two Canberras.
''There is a Canberra that is geared to double-income professionals and their needs are fairly well met in both rental and purchasing, in the upper 50 per cent of the market.''
''The challenge really is around getting policy settings right to encourage a greater level of private sector investment in the more affordable end of the housing market.''
Mr Barr, who plans to bring more than 18,000 new residential blocks to the market in the next four years, warned the housing industry to expect more, not less government intervention in the market.
''Without wanting to reveal the full details of the government's deliberations there, I think there is certainly the possibility to move above 20 per cent in terms of our target in some new estates.''
The minister also said that the government would lean towards an oversupply of housing blocks, despite industry concerns that the market might be ''softening.''
''I have that in the back of my mind when I am being approached by some in the industry, who say, 'We think the market's softening, so take your foot off the accelerator','' the minister said.
''There are mixed signals, clearly.
''My gut feeling is always to perhaps err on the side of oversupply. because you can always have the product on the shelf and delay its release to the market. But if you do not have that ready supply, you can get caught short.''
But under questioning from committee member Brendan Smyth of 0the Canberra Liberals, Mr Barr's Chief Economic Development Directorate director-general David Dawes conceded that none of the six development fronts underway around the capital were currently construction-ready.
Bob Winnel of the Village Building Company, the ACT's biggest affordable housing supplier, says the strategy of mandating segments of lower-cost stock in new estates was costing the government money.
''A blanket 20 per cent requirement of affordable housing in those new estates means a decline in revenue for the sites sold,'' he said. ''You can be more targeted in how you place the affordable parts of your residential land supply, place it where it won't affect your revenue.''
He was sceptical about the government's land release plans. ''There is going to be an emerging oversupply and that's a funny time to take your foot off the brake,'' he said.
This reporter is on Twitter: @noeltowell
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