ApartmentsChris ThomsonFri 16 Oct 26
ACT Developer Swaps Townhouses for Five Times as Many Homes
Core Developments wants to raise more than five times as many homes at a Canberra site after its original townhouse plan struggled to secure enough pre-sales.
For a 7543sq m site on Manoa Street at one of Canberra’s newest suburbs, Denman Prospect, Core has applied to lift its approved number of homes from 27 to 154.
The site in March of 2024 was approved for a 27-home townhouse complex. Amendment documents filed by Core said that, since then, “changing market conditions and project viability considerations have significantly impacted the feasibility of the approved development outcome”.
“In particular, escalating construction costs, elevated interest rates and softer market demand for a higher-priced townhouse product have resulted in insufficient pre-sales being achieved to support project delivery,” Core’s documents said.
“In response to this market feedback and the broader economic environment, [Core] has undertaken a reassessment of the most appropriate and viable development outcome for the site.
“The proposal put forward here represents one of the limited feasible development options currently available, having regard to prevailing market conditions, significant lease variation charges ... ongoing construction cost pressures and interest rate constraints.”
The upsized proposal, designed by Oztal Architects, comprises three interconnected five and six-storey apartment buildings.
“The site benefits from a highly desirable location within Denman Prospect, directly adjoining parkland and immediately opposite key community facilities, including Denman North playground and Denman North community garden,” Core’s documents said.
“The revised development approach seeks to deliver ... more efficient and sustainable housing ... while continuing to contribute positively to housing supply and urban consolidation objectives within Denman Prospect.”
A Core spokesperson told The Urban Developer that price and location had been the two main drivers of the amendment.
“At the price point we were selling the townhouses, most buyers were leaning towards a house as it was a comparable price point,” they said.
“Those that specifically wanted a townhouse—mostly downsizers as the townhouses had a lift and were suited to this demographic—were discouraged by the location within the suburb as they felt as though [it] was more of a high density area already, and that the services and infrastructure were lacking in the suburb, and would take too long to be delivered.
“It’s a tricky time for development, with market instability, low buyer confidence, investor changes, high borrowing costs, high construction costs and high land prices.”
Core’s revised project acknowledges the importance of Canberra’s Ngunnawal first nations people and their connection to the national capital.
Plants indigenous to Canberra are proposed for the site, and incorporating Ngunnawal language, culture and artwork into the design is being explored.
Public comment on Core’s plans is due to close on November 2.
