One of the most significant trends emerging across Commonwealth and State Governments is a renewed focus on identifying, repurposing and activating surplus or underutilised government land to help address Australia's growing housing shortage.
This shift is being driven by mounting housing affordability and supply challenges across the country. Housing has become one of the most pressing social and economic issues facing governments, with affordability deteriorating, rental markets remaining constrained and housing supply struggling to keep pace with demand.
Australia's Housing Crisis – Key Statistics
Housing Affordability
- New mortgage repayments consume 45.9% of median household income.
- It takes an estimated 11.2 years for the average household to save a home deposit.
Housing Supply
- Australia has a national target to deliver 1.2 million new homes which has been in place since 2024 and target to 2029
- Current forecasts indicate approximately 980,000 homes may be delivered during that period, highlighting a significant supply shortfall.
Social Housing
- Australia has approximately 430,000 social housing households.
- More than 200,000 households are currently on social housing waiting lists.
Government Land as a Strategic Housing Tool
Against this backdrop, governments are increasingly viewing their property portfolios not simply as operational assets, but as strategic tools for delivering broader housing, community and economic outcomes. Land that was once retained for future operational requirements, historical purposes or legacy uses is now being reassessed through the lens of housing delivery, urban renewal and economic development.
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 transaction reflects a broader trend occurring across jurisdictions. Rather than relying solely on private sector land supply, governments are increasingly looking inward at their own property holdings to identify opportunities for redevelopment, intensification and divestment. In many cases, surplus government land is located in well-serviced and strategically positioned areas close to transport corridors, employment centres and existing infrastructure, making it particularly attractive for residential development.
We are also seeing governments undertake large-scale property audits and land reviews to determine where assets may be underutilised or no longer aligned with contemporary service delivery requirements which we have seen and noted with Department of Defence. These reviews are often driven by changing workplace practices, service transformation programs and more efficient utilisation of government accommodation. As a result, internal property strategies are increasingly focused on optimising asset portfolios, reducing surplus holdings and activating land for alternative uses.
Multiple Policy Objectives in Play
Importantly, the focus is not solely on releasing land. Governments are becoming increasingly sophisticated in leveraging landholdings to achieve multiple policy objectives simultaneously. Housing delivery is being combined with goals relating to affordability, infrastructure investment, economic development, social outcomes and sustainability. This has led to a greater emphasis on precinct planning, mixed-use developments and integrated infrastructure delivery models.
At the same time, governments recognise that housing supply challenges are not solely a land issue. Infrastructure readiness has become a critical consideration, with significant investment being directed toward roads, water, sewerage, utilities and community infrastructure to unlock development opportunities and accelerate housing delivery. This reflects a broader shift towards coordinated land-use and infrastructure planning.
What This Means for Government Property Portfolios
For agencies responsible for managing large property portfolios, these trends create both opportunities and challenges. There is a growing expectation that government land and assets should contribute to broader public policy outcomes while continuing to support operational requirements. As a result, strategic asset management, highest and best use assessments, feasibility studies, portfolio optimisation and land activation strategies are becoming increasingly important decision-making tools.
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, urban renewal projects or strategic redevelopment initiatives, governments across Australia are increasingly recognising that their property portfolios can play a direct role in addressing housing supply constraints and supporting long-term economic growth.