Government promises to get 'tougher' on Canberra's epidemic of derelict local shops

The ACT Minister for Planning has accused the owners of Canberra’s derelict shops of effectively “land banking”, and promised “tougher measures for property owners who leave their local shop spaces vacant or unused” if re-elected in October.

“I think we’ve seen at shopping centres like Richardson, and other shops like Duffy, shop owners who have done the wrong thing by the community by leaving them run down and untenanted for too long,” Chris Steel said this week.

“If a building owner can’t tenant a local shop or redevelop their facilities to make them viable, they should sell them to someone who can.”

The comments came in response to a petition from locals about the state of the Richardson Shops.

Ever since the IGA supermarket moved out of the small shopping precinct on Clift Crescent in 2019, followed by the last tenant – a hairdressing salon – in 2022, nearby residents complained the site has fallen into a state of disrepair.

“It has been damaged extensively – all the windows are boarded up and covered in graffiti,” lead petitioner Caitlin Tough told Region in February.

“I know how important it is for residents to have access to services and to have local facilities maintained and kept clean. The owners of Richardson shops seem to have failed the local community on both of those things.”

The petition, which attracted 372 signatures, demanded a “full update from the owner on any future plans for the site” and “advice of what alternate use of the land and site can be considered”.

The shops are owned by Michalis Holdings*, which has previously told Region “we don’t want it sitting there empty as it’s giving us no return” but accused the government of knocking back plans for a childcare centre, mechanics workshop, and service centre/shop.

In a subsequent investigation, Access Canberra found the “lessee is not currently in breach of the obligations” and “is experiencing difficulties securing a tenant”.

“The subject site is a privately leased block, and therefore, the ACT Government has limited options to make this service available,” the response also read.

But in a separate statement, Mr Steel went further.

He said a re-elected Labor government would re-zone local shopping precincts for “multi-use developments” and allow apartments to be built on top of shops in what’s been dubbed “shop-top” housing.

In the case of Richardson, he would also open up an additional three blocks between the current shop site and the nearby skate park for development.

“It’s disappointing to see some owners of our shopping centres engaging in practices that are effectively land banking,” he said.

“Labor will provide incentives to renew these shopping hubs through supporting mixed-use development.

“We will also look at how underutilised land may support broader renewal of these centres. In relation to Richardson shops, there are currently three undeveloped parcels of land … near the shops. The government will look at releasing these blocks to stimulate renewal at the centre and promote a range of diverse uses.”

However, he also said this may not be enough for some shop owners, and “disincentives need to be considered”.

“As part of our plan to encourage renewal at local shops, a re-elected Labor government will investigate tougher measures for property owners who leave their local shop spaces vacant or unused.”

Canberra Liberals MLA Mark Parton has campaigned vigorously on the state of Richardson Shops in recent months, posting a number of videos to his social media accounts showcasing their decay.

He described Mr Steel’s comments as “finally … an admission that the demise of Richardson shops is the fault of the government”.

“The Planning Minister has conceded that the government will need to provide incentives to get any forward movement here, which is an admission that the government has failed up to this point,” he told Region.

“The ACT is the most expensive and cumbersome place to do business in the whole of the country. The combination of rapidly escalating rates and charges and mountains of red tape combined with the cost-of-living crisis has led to many insolvencies.

“Mr Steel and most of his colleagues have never run a business, and it shows.”

He said the Canberra Liberals will respond with policy announcements “leading up to the election”.

*CORRECTION: This article was updated to state that Michalis Holdings own Richardson Shops.