The Tralee – now South Jerrabomberra – housing development started life more than a decade ago and despite necessary approvals, it seems further delays are set to plague it.

That is bad news for the buyers who lined up to buy the blocks when they went on sale but also for the company, and for the industry overall.

Tralee, along with nearby Googong, is considered to be a more economical purchase for first home buyers and those looking for a block of land rather than plots offered in Canberra.

And the NSW townships have been luring buyers across the border for this very reason.

The news of this delay may put buyers off and also remove one of the options of affordable land in the region – at least in the short term.

The news will be a stab in the heart to former chief executive of Village Building Company Bob Winnel, who stepped down from the role recently after Tralee finally became closer to a reality.

South Jerrabomberra will eventually have more than 1000 dwellings – but this is only a fraction of what he initially proposed for the site.

The project has been marred with delays and controversy since its inception – including opposition from Canberra Airport and a lack of support from the ACT and federal governments due to its location beneath but outside of the Australian Noise Exposure Forecast.

Village Building Company's decision to allow buyers to rescind their contracts due to the delay is a commendable one but is also an indication that the company has a long way to go in getting the development off the ground.

A cross-border agreement between the ACT and NSW governments on road and infrastructure costs must now be reached before the project can go ahead.

It would appear the ACT government have little incentive to work with their NSW counterparts to speed this process up – when the development lures its own residents across the border.