Green light for $480m mixed-use tower as Canberra CBD gets its biggest overhaul in a decade

Canberra's property market has received a significant shot in the arm following the ACT Planning and Land Authority's approval of a major mixed-use development set to reshape the city's CBD precinct.

The project, approved last week, will see a 28-storey tower rise near the intersection of London Circuit and West Row, introducing approximately 380 residential apartments, 12,000 square metres of premium office space, and ground-floor retail and hospitality venues. Industry sources value the development at around $480 million.

The approval marks a turning point for Canberra's urban intensification strategy, particularly as the territory grapples with chronic housing undersupply. With the ACT median house price hovering near $835,000 and rental vacancy rates sitting below 1 per cent, developers and planners increasingly view CBD revitalisation as essential to relieving pressure on outer suburbs like Gungahlin and Belconnen.

"This is exactly the type of density we need in established areas," said a spokesperson for the ACT Property Council, who noted the development would deliver mixed-tenure housing options across price points—a critical factor given Canberra's concentration of public servant buyers competing in a constrained market.

The London Circuit location proves strategic. Proximity to the National Library, Australian Institute of Sport facilities, and the evolving dining precinct around Garema Place positions the development to capitalise on foot traffic and lifestyle amenities. Early market analysis suggests the project could command apartment prices ranging from $650,000 for one-bedroom units to over $1.8 million for premium penthouses—positioning it competitively against comparable Canberra developments.

The approval comes amid broader CBD activation efforts. City Services has flagged separate streetscape upgrades to West Row and adjacent pedestrian links, while the National Capital Authority is reviewing heritage overlays that have historically constrained development in the core precinct.

Not all commentary has been uniformly positive. Conservation advocates raised concerns during the consultation period about the tower's height relative to heritage sight lines from Parliament House, though the final approval suggests the Authority weighted housing supply concerns more heavily.

Construction is expected to commence in early 2027, with completion pencilled in for 2030. If delivered on schedule, the project would inject significant rental and purchase-ready stock into a market where clearance rates—currently tracking around 65 per cent—suggest underlying demand remains robust despite broader economic headwinds.

For Canberra's property sector, the approval signals a decisive shift toward vertical growth in the CBD, potentially influencing investor appetite for similar projects in adjacent precincts.

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