Canberra Council Approves $47M Belconnen Renewal as Planning Row Erupts Over Gungahlin Tower

Canberra's local government has signalled significant momentum on urban renewal this week, with the ACT Executive approving a $47 million upgrade to Belconnen's civic precinct while simultaneously becoming embroiled in a contentious planning dispute over a proposed 18-storey mixed-use tower in Gungahlin Town Centre.

The Belconnen investment, unveiled in Thursday's sitting, will fund streetscape improvements along Benjamin Way and around Westfield, alongside new public spaces designed to revitalise the suburb's aging commercial core. Local traders welcomed the announcement, though some questioned whether sufficient retail support would accompany the infrastructure spend. "We need foot traffic alongside new paving," one business representative told The Daily Canberra on condition of anonymity.

The approval comes as the ACT Planning and Land Authority faces mounting criticism over its recommendation to greenlight Halosley Group's 18-level residential and commercial development at 2 Gungahlin Place. Community groups, including the Gungahlin Community Council, have submitted 147 objections citing density concerns and inadequate traffic modelling for the town centre's already-congested intersections.

The dispute has exposed wider tensions around Canberra's urban densification strategy. While the ACT Government's 2026-2036 planning framework targets 70 per cent of new housing within established suburbs, residents in Gungahlin argue the pace of change threatens neighbourhood character. Parking provisions in the proposed tower—just 0.8 spaces per residential unit—have proved particularly contentious, with critics pointing to limited public transport options on the Gungahlin-Belconnen corridor.

Separately, this week's council meetings confirmed that the $12 million Civic Square precinct redevelopment remains on track for completion in late 2027, despite supply chain delays affecting landscaping materials. The project will reconnect Commonwealth Avenue with London Circuit, establishing a new cultural focal point near the National Library.

In other developments, the ACT's transport authority announced consultation will begin next month on a proposed light rail extension to Woden Town Centre, with preliminary route options incorporating either Hindmarsh Drive or the existing Canberra Avenue corridor. The decision carries implications for local businesses along both routes, particularly in Curtin and Forrest.

The week concluded with the ACT Legislative Assembly adjourning until mid-July. The Gungahlin tower application enters its final submission phase, with a planning panel decision expected by early August. Whether it proceeds will substantially shape Canberra's densification trajectory over the coming decade.

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