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Potential oversupply for Canberra

By Staff Reporter
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What could be the capital city's tallest residential development had been proposed for Canberra’s Belconnen precinct.

The mixed-use development by developer Geocon, to be built in the Belconnen town centre, would consist of two towers on the corner of Eastern Valley Way and Aikman Drive.

The development includes a 35-storey residential tower at 112 metres with commercial on the ground floor and a hotel with 168 apartments at 80 metres.

Angie Zigomanis, BIS Shrapnel’s senior property analyst, said as one of Canberra’s main centres, Belconnen has enough infrastructure to potentially support a project like this.

“From a local perspective, maybe the area can support that type of project with the amount of people that are likely going to be living and working around that area,” he said.

However, adding that “size-wise it’s very out-of-scale for Canberra in general.”

While the effect of the tower on the local property market will depend on other development projects in the pipeline, Mr Zigomanis said there could be an oversupply of apartments in the capital city in the future.

“In Canberra in aggregate, we think there will be a developing oversupply in the next couple of years. There are a lot of apartment projects already under construction and working through their way to completion,” he said.

The proposed tower will be discussed at the Belconnen Community Council meeting on February 19.

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