Shane Martin: How to solve the ACT's growing population and housing supply issues

If we are to support this growing population, we need to rapidly increase and consider both short- and long-term solutions to our housing supply.

One of the most pressing issues facing the ACT is the housing supply crisis. Currently our RZ1 Suburban Zoning stops redevelopment of properties into dual occupancy.

Around 70 per cent of properties in Canberra are RZ1 and this is uniformly applied across the capital. This is irrespective of location and areas of growth, and severely reduces our ability to build more housing within existing urban areas.

In recent years, the cost of housing in Canberra has skyrocketed, making it increasingly difficult for housing choice, in particular with intergenerational access and first-time buyers and lower-income families within the property market.

Planning reform can address this issue by increasing the supply of housing and providing more choice in the market.

To achieve this, whilst there should be a review of RZ1 Suburban Zoning and consideration of housing need, duplex for development is still suburban scale housing. There have been recognised housing types that can successfully integrate into the urban character and have been unduly restricted in contemporary times.

Currently, there is hope as the ACT government have undertaken a planning reform package.

The Planning Bill 2022 has now passed the Legislative Assembly, but we are still waiting on the new Interim Territory Plan that will guide planning and development in the ACT.

The hope is that this Interim Plan will reform RZ1 and ACT Chief Minister Andrew Barr this week foreshadowed this.

Ultimately, we need to consider the merit of RZ1 in Canberra, but as a first step there are areas we should focus on first.

All RZ1 zones are not created equally and there should be consideration that urban infill should be focussed around areas appropriate for densification and on the basis of proximity to services and adjacency to public transport and infrastructure.

Utilising the existing road hierarchy as designated by Transport Canberra and City Services and location to local centres, we should reform RZ1 for those properties to allow increased development rights for blocks over 800sqm.

This not only makes the most sense for densification but would have the dual benefit of improving our local centres and vibrancy.

Our local shopping centres often do not have the patronage to create living vibrant spaces for cafes, restaurants and grocery stores. By increasing housing density in walking distance of these areas we would stimulate economic growth and productivity for that area and revitalise our local centres.

It is recognised by industry, that the current system would require a Lease Variation Charge (LVC) on the Crown Lease. This provides the government the ability to both consider how this can target areas to facilitate growth and additionally provide new infrastructure that may be required to support.

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If we are going to meet housing targets, we need reform and targeted incentivisation to allow the market to swiftly respond.

The ACT is at a critical juncture in its development, with a growing population and housing supply issues that demand immediate attention.

Radical planning reform is not only necessary but also an opportunity to shape a more sustainable, affordable, and inclusive future for the region.

There's a lot of work to be done by RZ1 reform and it is a crucial step in the right direction.

It is time for the ACT to take bold steps toward a brighter future and embrace consideration of gentle urbanism and duplex form development.