Governments across Australia are increasingly turning to surplus or underutilised public land to help ease a worsening housing shortage, according to policy documents and recent acquisitions. The shift reflects mounting pressure from rising housing costs, constrained rental markets and persistent supply gaps that have strained communities and budgets since 2024.
Housing Shortage Drives Land Repurposing
The national housing target calls for 1.2 million new homes by 2029, but current projections suggest only about 980,000 may be delivered, leaving a significant shortfall. New mortgage repayments now consume 45.9% of median household income, while it takes an estimated 11.2 years for the average household to save a deposit. Over 200,000 households remain on social housing waiting lists, with just 430,000 social housing units available nationwide.
These challenges are prompting governments to view their property portfolios as strategic assets rather than static holdings. Land once reserved for operational, historical or legacy purposes is being reassessed for residential, commercial or community development.
ACT Government’s CSIRO Site Acquisition
A recent and highly visible example is the ACT Government’s acquisition of part of the former CSIRO Ginninderra Experiment Station. The ACT Government has agreed to purchase 243 hectares of the site for $385 million, enabling the future delivery of more than 3,000 homes, including affordable, public and community housing. The acquisition is intended to support the ACT’s target of enabling 30,000 new homes by 2030 while creating a new master-planned community in Canberra’s north.
This mirrors a nationwide trend where jurisdictions are conducting large-scale property audits to identify underused assets. Reviews often target holdings no longer aligned with modern service needs, such as the Department of Defence’s portfolio, which is being optimised for efficiency and alternative uses.
Property Audits and Multi-Policy Objectives
Governments are not merely releasing land but leveraging holdings to meet multiple goals at once. Housing delivery is being paired with infrastructure investment, economic development and sustainability targets. Precinct planning and mixed-use models are gaining traction, reflecting a shift toward integrated land-use strategies.
Infrastructure readiness has become a critical factor, with investments directed toward roads, water, sewerage and utilities to unlock development sites faster. Coordinated planning between land and infrastructure is now central to activation strategies, ensuring new developments can proceed without delays from service gaps.
Strategic Asset Management Implications
For agencies managing large property portfolios, the focus is shifting toward strategic asset management. Highest and best use assessments, feasibility studies and portfolio optimisation are becoming standard tools for decision-making. The acquisition of the CSIRO Ginninderra site is likely to be one of many similar initiatives we will see over the coming years, whether through surplus land audits, divestment programs or urban renewal projects.
Leave a Reply