New Apartments Canberra Civic: 340-Unit Tower Approved

The ACT Planning and Land Authority has granted development approval for a landmark mixed-use project that will deliver 340 new apartments to Canberra's CBD, signalling a sustained push toward higher-density living in Civic as the housing market tightens across the region.

The $280 million development, approved for a prominent corner site on Mort Street between Alinga Street and Petrie Plaza, will comprise three residential towers ranging from 18 to 24 storeys, along with ground-floor retail and hospitality precincts. Developers have committed to a minimum 15 per cent affordable housing allocation, responding to mounting pressure from the ACT government to address affordability constraints in a market where median house prices now hover near $835,000.

The approval comes as Canberra grapples with persistently low vacancy rates—currently sitting below 1 per cent—and growing demand from public servants and young professionals seeking walkable, low-maintenance inner-city living. While established growth corridors like Gungahlin and Belconnen continue to attract families, planners and developers increasingly recognise the CBD's potential to absorb housing demand without sprawl.

"This approval reflects a strategic shift," says a spokesperson for the development consortium. "Civic offers proximity to employment hubs, transport, and services that outer suburbs simply can't match."

The project includes 380 car parks—lower than traditional ratios, but aligned with the ACT government's push toward transit-oriented development. A dedicated shuttle service to the city interchange and provisions for active transport infrastructure form part of the consent conditions.

Auction clearance rates across Canberra have stabilised around 65 per cent, but inner-city apartments have proven resilient, with several neighbouring projects reporting strong pre-sales. The new development's product mix—ranging from studios to three-bedroom dwellings—reflects market research suggesting diverse household compositions are driving demand.

Concerns have been raised by some local traders about construction impacts on Civic's retail strip, though the planning authority imposed strict staging conditions to minimise disruption. Works are expected to commence in early 2027, with staged completion beginning mid-2029.

The approval also requires the developer to contribute $8.2 million toward public domain improvements, including plaza upgrades around Petrie Plaza and enhanced pedestrian connectivity toward the National Library precinct. These contributions form part of the ACT government's broader strategy to activate Civic's public realm—echoing similar initiatives rolling out across other inner-city precincts.

The project's approval signals confidence in Canberra's medium-term housing outlook, even as interest rate conditions remain elevated. For potential buyers, it underscores growing competition for inner-city product as supply enters the market.

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