Sale and Purchase
The purchase of contaminated homes and their removal has been made possible after the ACT Government received a $1 billion concessional loan from the Commonwealth Government, which needs to be repaid through the sale of remediated blocks.
The sale of remediated blocks will allow the ACT Government to recover some of the costs of purchasing, maintaining, demolishing, remediating blocks and safely disposing of affected homes.
Over five years, the ACT Government will demolish approximately 1000 residential properties across 57 Canberra suburbs and offer these remediated blocks for sale. The sale price for a remediated block will be determined by the ACT Government based on independent market valuations.
It is estimated that even after the resale of blocks, the ACT Government will have at least a $400 million deficit to manage.
Each remediated block will be valued and then offered for sale firstly to eligible First Right Holders, then to Government agencies and then to the public via auction, tender or another method of sale.
- A First Right Holder is a former owner of a property that was affected by Mr Fluffy loose fill asbestos insulation who surrendered their property through the Buyback program and elected to receive the First Right of Refusal on their former block when it became available for sale. There are other conditions and eligibility criteria but this is a special arrangement for people who are interested in returning to their street, neighbours and community to rebuild by offering the block at market value without having to compete at a public auction.
- Blocks where the First Right of Refusal has been declined, waived or forfeited will be offered to Government agencies such as Housing ACT where it may meet the requirements of a broader government initiative.
- Any remaining blocks will be made available to the public on the open market through a competitive process, such as auction, with a reserve price that is no lower than the price originally offered to the Former First Right Holder.
In some cases, the land may be subject to rezoning but just like any rezoning in the ACT, this would be subject to consultation with the community under the Territory Plan and would be independently undertaken by the Environment, Planning and Sustainable Development Directorate.
- The Territory purchased the affected properties at full market value, ignoring the presence of loose fill asbestos contamination and minor presentation or maintenance issues.
- Each house is safely demolished, the waste removed and land remediated.
- To determine the market value of a remediated block, the Suburban Land Agency uses qualified, independent valuers in accordance with existing policies and practices.
- The market valuation is used to set the price for remediated blocks offered to First Right Holders or on the open market.
- Land Rent is available for eligible First Right Holders. It is not available for blocks sold on the open market.
- After the block is purchased, the new house is subject to planning approval and public consultation prior to construction.