Australia’s state and territory governments are turning to their own underused land to help ease the country’s worsening housing crisis. With affordability at record lows and supply struggling to match demand, officials are now treating surplus properties as tools for social policy rather than just operational assets.
The pressure to act is clear. New mortgage repayments now take up 45.9% of the average household’s income, while the typical family spends 11.2 years saving for a deposit. Despite a national target to deliver 1.2 million new homes by 2029, forecasts suggest only 980,000 will be built—leaving a gap of nearly 220,000 units. Meanwhile, over 200,000 households are on social housing waiting lists, with just 430,000 such homes currently available.
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Governments are responding by rethinking how they use their own land. Sites once held for future needs, whether for defense, research, or administrative use, are now being repurposed for housing. The Australian Capital Territory’s recent purchase of 243 hectares from CSIRO’s former Ginninderra Experiment Station for $385 million is a case in point. The deal aims to create over 3,000 homes, including affordable and social housing, as part of Canberra’s push to build 30,000 new units by 2030. The land sits near transport links and employment hubs, making it ideal for development.
This approach isn’t limited to the ACT. Across Australia, agencies are conducting large-scale property audits to identify underused land. The Department of Defence, for instance, has been reviewing its holdings to free up space no longer needed for operational purposes. The goal isn’t just to release land but to integrate housing with infrastructure, economic growth, and community needs. Mixed-use developments and coordinated planning for roads, utilities, and services are becoming standard practice.
For government agencies managing vast property portfolios, the shift creates both challenges and opportunities. Balancing operational needs with broader policy goals, like affordability and sustainability, requires careful planning. Agencies must now assess the best use for each asset, whether that means selling surplus land, redeveloping sites, or partnering with private developers. The CSIRO deal suggests this trend will accelerate, with more jurisdictions likely to follow suit in the coming years.
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What this means for residents is clearer access to land where it matters most. Many surplus sites are already near jobs, transit, and amenities, reducing the need for sprawling greenfield developments. But the real test will be whether these efforts can keep pace with demand. With housing costs showing no signs of easing, governments may need to move faster and think bigger.
Defense properties are among the most scrutinized for potential redevelopment. Officials are now exploring options to divest or repurpose these areas, though environmental and zoning hurdles remain. The process is slow, but the stakes are high: every released parcel could help close the housing gap.
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