Mixed-use tower approved for prime Civic site as CBD revitalisation accelerates

A landmark mixed-use development has won planning approval for a prominent site on Alinga Street in Civic, marking a significant step forward in efforts to revitalise Canberra's struggling central business district.

The ACT Planning and Land Authority granted development approval for an 18-storey tower comprising 250 residential apartments, 4,500 square metres of retail and hospitality space, and 280 car parking spaces. The $185 million project is expected to commence construction in early 2027, with completion targeted for late 2029.

The approval represents a rare piece of good news for Civic, where commercial vacancy rates have hovered near 12 per cent and foot traffic has declined sharply over the past three years. Property analysts suggest the development could help reverse negative sentiment, particularly given Canberra's broader residential property pressures.

The median house price across the ACT currently sits around $835,000, with limited new supply in established inner suburbs driving demand toward emerging precincts. The Civic tower is expected to offer one and two-bedroom apartments priced between $520,000 and $820,000, positioning the development as an attractive entry point for first-home buyers and downsizers—demographics that have historically favoured public service employment security.

"This approval underscores confidence in Civic's future," a spokesperson for the development consortium said in a statement, noting the project's proximity to light rail infrastructure on Northbourne Avenue and the city's cultural institutions along London Circuit.

The site, currently occupied by an underutilised 1970s office building, sits adjacent to the National Museum of Australia and within walking distance of Glebe Park and the Canberra Centre. Ground-floor tenancies are anticipated to include food and beverage operators, aligning with the territory government's broader CBD activation strategy.

Planning approval came with conditions including heritage sensitivity assessments, traffic management protocols, and requirements for 25 per cent affordable housing within the residential component. The developer must also contribute $1.2 million to the ACT government's city centre improvement fund.

The decision reflects a cautious shift in regulatory appetite after several major CBD projects stalled between 2023 and 2025. Comparable developments in Gungahlin and Belconnen—the ACT's primary growth corridors—have absorbed significant population demand, but planners remain intent on stabilising the city centre, where office conversions remain economically challenging.

The approval is subject to finalisation of construction contracts and satisfactory due diligence, expected within six months.

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