The office of Economic Development Minister Andrew Barr informed The Canberra Times late yesterday the planned June 5 auction of the land on the corner of Deamer and Heagney crescents would now be delayed.

Mr Barr is writing to residents of Chisholm, telling them he has asked the Economic Development Directorate to delay the sale of this block ''to ensure that a workshop can be held with residents to work through a range of options for the future development of this site''.

The Canberra Times reported yesterday that even though the land was zoned for commercial use it had a playground on it and had been used as a park by the community for the last 30 years.

No development has been slated for the site but the government has indicated that 22 units of up to two storeys could go on the block.

Residents have also criticised the government's consultation processes, saying most of those who responded to the consultation were against the sale or had reservations about it.

Mr Barr explained in his letter to the residents that the government supported ''consolidating development within our existing suburbs''.

''However, it is equally important that we understand the community's concerns and visions for its suburbs,'' he said.