The debate Canberra must have on allowing missing middle housing in its suburbs will be "challenging" or the city risks being eclipsed in housing choice by Queanbeyan, the Planning Minister says.
Chris Steel warned of the need to keep pace with NSW's plans to adjust residential zoning rules, saying more housing types could be legal across the border before they were permitted in the capital.
"We need to be alive to that. We don't want to become an island of unaffordability for housing, with no housing choice here in Canberra, when we've got that over the border as well. We operate in what is effectively a common market," Mr Steel said.
The Planning Minister said he believed most people intuitively understood the benefits of having more housing choice, including allowing older people to downsize and letting younger people enter the property market.
"But what was missing is that broader discussion, the broader analysis that is really critical to actually demonstrating the importance of this reform going forward and to be able to make the case for the reform," Mr Steel said.
Mr Steel on Wednesday launched a Property Council-commissioned report, which found nearly 60,000 new homes could be built in Canberra if the government agreed to "upzone" more suburban land in a scheme focused on blocks closer to transport, shops and services.
The government on Wednesday finalised the territory plan under the outcomes-based planning system adopted late last year.
The final plan introduces clarifications on height requirements, planting areas, urban heat island effects, and energy efficiency, but a re-elected Labor government would consider "major" amendments next year to allow duplexes, townhouses and row houses and other missing middle housing on RZ1 blocks.
The Planning Minister told a Property Council event on Wednesday the industry group's report would provide useful information for the next stage of the government's planned changes to the planning system, which include allowing more missing middle style housing.
Missing middle housing types include row houses, terraces, duplexes and walk-up blocks of flats.
Mr Steel said the work would take around a year, including the development of a previously announced missing middle design guide. Urbis has been handed a $180,000 contract to develop a draft guide by May 30, 2025.
"We're not talking about changing public zoned open space to residential here. This discussion is about how do we use the existing residential zones in a way that can deliver more housing that fits in with Canberra's context. Dare I say the character of Canberra?" he said.
"And how we can do it in a way that brings the community on the journey. That's why we've chosen to take the design-led approach. And I'm really looking forward to working with you all as we develop that over the coming years."
The Purdon report recommended upzoning all RZ1 blocks larger than 700 square metres to current RZ2 rules, and upzoning RZ1 blocks to RZ3 when they score on a size and quality index above 70 per cent.
RZ2 land should become RZ3 when the blocks are larger than 950 square metres and achieve a quality score above 50 per cent.
