A joint $250 million funding commitment from the federal and ACT governments is set to unlock up to 4,900 new homes across the Australian Capital Territory, including nearly 1,700 earmarked for first-time buyers, according to the Housing Industry Association (HIA).

HIA Managing Director Jocelyn Martin has welcomed the announcement, calling it a timely intervention as homeownership rates among Australians under 40 sit at decade lows.

“This investment includes concessional loans and grants designed to accelerate the delivery of housing, particularly for first home buyers,” Martin says. “It comes at a critical moment for housing accessibility.”

The funding is largely targeted at so-called “last mile” infrastructure and essential services such as roads, sewerage, water, and electricity, which industry leaders say often delay housing developments.

“Builders consistently tell us that these final infrastructure components are the biggest bottleneck preventing projects from being completed on time,” Martin says.

The funding package allocates resources across several projects throughout the Territory:

$37.5 million for infrastructure works supporting 75 homes in the Kingston Arts Precinct
$12.5 million to enable 150 homes in Weston Creek
$100 million for estate works expected to support 537 homes by 2034
$20 million to relocate high-voltage power lines in Kingston, unlocking 210 homes
$20 million for water management infrastructure in Molonglo Valley’s Deep Creek project, supporting 65 homes
$30 million for landfill capping at the Ginninderry Regeneration precinct, enabling 86 homes
$25 million for relocating overhead power lines in Ginninderry, supporting 85 homes and expanding development
$5 million for additional infrastructure in Ginninderry, supporting 35 homes

Martin says the association has long advocated for increased infrastructure funding to help accelerate housing supply and praised the announcement as a step in the right direction.

“This commitment will be particularly important in boosting greenfield housing options for first home buyers,” she says. “These types of homes are becoming the missing middle in Canberra, where apartments have increasingly dominated new construction.”

The initiative is expected to make more housing developments “shovel-ready” and contribute to broader national efforts to deliver 1.2 million new homes.

“This is about building more homes, faster,” Martin says. “And getting closer to meeting Australia’s long-term housing targets.”

Image: ACT Government

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