Residential developers have paid more than $11 million for multi-unit sites in Gungahlin, raising questions on whether this is becoming the only style of housing Canberrans can afford.
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The sale by tender of land in Jacka paves the way for more than 200 homes, with about 60 to be priced between $340,000 and $373,000.
The land, comprising two packaged lots for single dwellings and six multi-unit sites, sold for more than $11.4 million and was subject to a competitive tender process which attracted more than 30 bids.
Successful tenderers were Canberra-based Village Building Company, Gracious Living Constructions and Elevated Constructions Pty Ltd.
Village paid the two highest prices, $3.210 million for an 11,193 square metre block and $2.451 million for a 9823 square metre block. Both are designated for multi-unit developments.
A spokeswoman for Deputy Chief Minister Andrew Barr said the blocks were sold by tender, rather than an open auction, because developers had to enter into a performance agreement on affordable housing.
The spokeswoman said this sale and previous sales of unit sites at Wright demonstrated there was a demand.
Master Builders Association deputy executive director Jerry Howard said although there was a large volume of homes on the market, he had heard of an underlying demand for 3000 homes, and the Land Development Agency was saying there was demand.
''This suggests to me the demand is at the lower end of the market,'' Mr Howard said.
''We have to be very careful not to price ourselves out of the business, some of the mid-level supply is taking a long time to move.''
Multi-units were cheaper housing options for people entering the market, but could be forcing people to buy something they didn't want, rather than stand-alone homes, which were becoming too expensive.
''You hear people saying this [units] is what the market wants. But is it a case of people not getting what they want, but what they can afford?''
Mr Barr said the government's affordable housing strategy and record 17,000 dwellings sites released over four years had led to supply beginning to catch up with market demand.
He said the latest Australian Bureau of Statistics building approval figures showed the ACT recorded the largest trend increase in building approvals in the country at almost triple the national average.
''This is a fantastic result for the territory but affordable housing continues to be a significant issue in our community and there is more work to do.
''That's why the ACT Labor government will continue to increase the supply of new housing over the next four years … to deliver a further 19,500 new residential dwelling sites.''
