Canberra residential home builder Matthew Smith wants an inquiry into whether the ACT government’s land release system is fair, or favours a select few people.
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For years the government and industry have aimed for over-the-counter sales of land, rather than balloting blocks which are purchased off the plan, and which can take up to 18 months for civil infrastructure to be completed before building can begin.
In a ballot, potential buyers register online and receives a number which is entered into an electronic ballot draw system.
Ballot numbers are drawn sequentially and results are uploaded on to the LDA’s website.
If successful in a ballot people are invited to select and purchase a block.
The government says blocks are now for sale over the counter as well, but Mr Smith says they are scarce and too expensive.
At a 2008 ballot in Franklin he secured more than 70 blocks by advertising his homes first, and entering into contracts with people who had been successful in drawing a suitable block of land.
But he said the Land Development Agency had taken him aside and said he could not canvass for business at ballots.
He believes the ballot system favours a handful of builders who build display homes with the LDA, and who have options on up to 20 blocks, Mr Smith said.
‘‘This is unfair to 99 per cent of other builders and unfair to the public as well.’’
He said families and builders could not wait 18 months for work to begin on a new home.
‘‘What are the builders and people we employ going to do while they decide they had better start digging?’’
More than 800 people registered for a ballot of 98 blocks at Jacka last year. At Harrison more than 1800 registered for 294 single residential blocks offered.
LDA chief executive David Dawes said all blocks offered by ballot or over the counter were available to the public, including builders.
‘‘This financial year 119 blocks have been released or will be released via a ballot process and to date 155 blocks have been offered over the counter,’’ Mr Dawes said in a written response to questions.
Mr Dawes said LDA ballots would continue. They ensured equal access for all interested parties and were additional to over-the-counter sales.
Housing Industry Association ACT and southern NSW executive director Neil Evans said the government had made inroads, but very slowly, towards over-the-counter sales.
‘‘I don’t think there is the opportunity for people to buy land over the counter as we speak, but they are aiming for that. It is bringing it through the pipeline that is taking its time.
‘‘You might buy a block on a map in a ballot, but until all the subdivision work is done, you don’t know what the fall or the angle on the block is going to be.
‘‘There could be considerable fill on the block which could lead to extra foundation costs.
‘‘(Ballot) is a way to sell blocks but preferably, if it were me, I’d like to walk down a road, see the curb and channel, see the pegs, the size and location of the block and walk onto it before you actually bought it.’’
