An expert has raised concerns impending construction laws could drive developers out of the territory, causing a shortage of housing.
The Property Developers Bill would require residential developers to hold a licence and establish a public register of licensed developers.
The scheme will also consider development companies liable for building defects for the first two years after a building is occupied unless they can prove otherwise.
The bill was introduced to the ACT Legislative Assembly in November 2023 and has now been passed.
An RSM Australia business advisory manager, Conor Nolan, said the legislation would place unfair pressure on developers and push construction out of the territory.
"[Defects] have to be managed through the whole supply chain," he said, noting many developers were reliant on the skills of tradespeople they employ.
"You can't just hold one person accountable. Every contractor must be held accountable for their work."
Mr Nolan said increasing regulation for tradespeople would be a more logical solution. Only builders, plumbers and electricians must be licensed in the ACT.
But engineer Mal Wilson of Advanced Structural Designs welcomed the new laws, and said putting pressure on developers would influence the whole supply chain.
"[Some developers] are purposely picking the worst contractors because they are cheaper," he said.
He noted though paying "the best" tradespeople was an additional expense, it would cut costs on repairs in the long run.
"It doesn't get the other workers off the hook. You can take the builder or structural engineer - any of those individuals - to court and get your money back," Mr Wilson said.
Developer supply
Increased licensing targeting developers may throw into doubt the territory's ability to achieve housing targets, Mr Nolan said.
Data from the Australian Bureau of Statistics shows a decline in the number new private sector apartment and townhouses approved in the nation's capital in the first six months of 2024.
The number sat at 1000 - well behind the 3200 unit approvals granted in the 2023 calendar year.
"If you are a big real estate investment trust, you are not going to come down here and do a property development if you are going to be held personally accountable if it goes wrong," he said.
He said RSM Australia knew of several ACT-based developers who were now choosing to only work over the border because of "tough" licensing conditions in the ACT.
But Mr Wilson said development was a readily accessible industry, so newcomers would fill possible gaps.
He also felt less developers in Canberra could bring down land auction prices, making overall developments cheaper.
"If it is less competitive, land may be bought more cheaply and at the end of the day, development will be down more cheaply. We can't know for sure until it happens," he said.
Government clarity
Mr Nolan was also concerned about a lack of direction from the government as to exactly how licensing will be rolled out and enforced.
Sustainable Building Minister Rebecca Vassarotti, said the government had met with local stakeholders on more than 10 occasions over the last year to develop the legislation.
"The government is currently consulting with stakeholders on the draft regulation and will continue engagement on other aspects of the scheme as these regulations are finalised," Ms Vassarotti said.
"An appropriate transition period will be put in place once the detailed aspects are finalised to support industry to comply with the requirements of the scheme."
