The ACT government has released draft planning reforms that could enable up to 1,000 new homes along the northern section of Canberra’s light rail.
The Draft Major Plan Amendment (DPA09) Northern Gateway outlines rezoning changes for parts of Downer and Watson, focusing on sites near Northbourne Avenue and the Federal Highway.
According to the government, the proposal aligns with its Inner North and City District Strategy, which earmarks transit corridors as priority growth areas for medium-density housing, realestate.com.au reported.
For brokers, the push for higher-density housing comes as lending conditions remain steady, with National Australia Bank forecasting that interest rate hikes are unlikely until late 2026 or even 2027. Commonwealth Bank also expects mortgage holders and investors could see one more 25-basis point cut in November, but warns that may mark the end of the current easing cycle.
Under the plan, land rezoned to RZ4 in Downer would allow three-storey developments, except for blocks near Northbourne Avenue and south of the Barton Highway, where heights of up to five storeys could be permitted.
Meanwhile, Watson sites rezoned to RZ3 would remain capped at two storeys, with a maximum height of 8.5 metres.
ACT Minister for Planning and Sustainable Development Chris Steel (pictured left) said the reforms were designed to leverage investment in public transport to support housing supply.
“Transit oriented development is a key part of the government’s planning reforms to enable 30,000 new homes by 2030,” Steel said.
“We’ve already seen investment in light rail being a strong catalyst for new housing being built along the southern end of Northbourne Avenue. These zoning changes will enable up to an additional 1000 well-located homes to be built in the northern end of the corridor, directly next to existing light rail stops at Swinden Street and Phillip Avenue.”
Property Council ACT executive director Ashlee Berry (pictured right) welcomed the draft reforms, describing them as a model for aligning housing growth with infrastructure.
“The Northern Gateway draft amendment shows what can be achieved when the planning system aligns housing supply with infrastructure and transport. With light rail stops at Swinden Street and Phillip Avenue, this uplift is a textbook example of compact, transit-oriented growth,” Berry said.
“Our members have consistently called for more diverse housing options near jobs, transport and services. This proposal provides exactly that – opportunities for townhouses, terraces and apartments that meet demand at different price points and support population growth to 2050.”
In addition to DPA09, the ACT government is preparing a separate planning amendment for the Thoroughbred Park precinct within the Northern Gateway. This plan is expected to be released for consultation later in 2025.
Community feedback on DPA09 is now open until November 2025 through the ACT’s planning website.
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