The ACT's peak residential building industry group has warned a lack of supply of land could encourage attempts to defraud the ballot system by which it is sold.
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The Housing Industry Association ACT and southern NSW executive director Neil Evans made the claim after the Environment and Planning Directorate received a complaint last week of alleged fraudulent entering of names into the ballot.
"When you hear stories like there's 300 or 500 blocks being released for a ballot, and you get 1500 to 2000 people registering for the ballot, that says supply and demand is totally out of control," Mr Evans said.
"The Land Development Agency needs to get the supply operating at a higher percentage rate, so people don't start stooping to processes and procedures that are actually breaking the law because the land is so scarce."
The directorate sought further details from the anonymous complainant, but said there was no current investigation into any complaint about the territory's land ballot, which is run by the LDA.
Land Development Agency chief executive David Dawes said the agency acted after the ballot process was abused in the past.
"It is true that several years ago we became aware that some unscrupulous parties were manipulating the process," he said.
"We introduced a scheme that required applicants to sign statutory declarations that they were not acting for third parties, and we witnessed a number of people dropping out of the ballot as a result."
All information collected for the ballots is reviewed by an independent legal firm, with the ballot itself overseen by Gambling and Racing Commission officials.
"I'm certain that the measures we've introduced mean that the ballots are as fair as they can be," Mr Dawes said.
More than 1800 people registered for the first general ballot for Moncrieff, in Gungahlin's north, which closed on October 7, with 317 blocks available. The number of homes available under the ACT government's Indicative Land Release program was slashed by 3000 in the June budget, with a target to now provide 13,500 dwellings in the next four years.
An LDA spokesman said the changes to the land-release program reflected shifts in market demand, while civil works at Moncrieff had been fast-tracked as part of the two-year stimulus package announced in March.
More than 4000 blocks have been offered through the ballot process since 2003.
Photo ID, which matches an applicant's details, is required when a successful ballot entrant selects their block.
Any agent, in their stead at selection time, has to show photo ID for both themselves and their client.
The sale of any bought but undeveloped land can occur only in limited circumstances with the approval of the Planning and Land Authority.
Property Council of Australia ACT executive director Catherine Carter said the government's planned land releases meant a catchup with demand would probably occur either early or in the middle of next year.
"To be frank, and history shows this, they will probably by the end of 2015 overshoot demand," she said.
Master Builders Association ACT deputy executive director Jerry Howard said he was not concerned about undersupply.
He said demand for Moncrieff blocks were a reflection largely of the favourable gentle slope of the area.