More residential development expected for Canberra's light rail corridor: survey

As the ACT government sells off some of its older Northbourne Avenue assets, private commercial property owners are also investigating capitalising on the thoroughfare’s transformation.

A survey of commercial building owners along Canberra’s light rail corridor has found about half have considered selling or redeveloping their assets for residential purposes.

Colliers International investment services manager Matthew Winter said the results of the company’s ACT light rail survey indicated that more buildings along the transport route are set to be converted.

“Commercial property owners seemingly believe that there will be continued demand from owner occupiers, investors and developers for opportunities along the corridor, particularly for assets showing future redevelopment potential,” Mr Winter said.

Mr Winter said most survey participants did not believe that the ACT government’s land release program and a large volume of units in the pipeline would lead to an oversupply of residential units along the light rail route.

“Feedback from commercial property owners suggested that an oversupply, if any, is likely to occur in outlying locations, rather than along the rejuvenated Northbourne Avenue corridor, particularly given the major infrastructure to support these new dwellings and higher residential volume,” Mr Winter said.

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Geocon managing director Nick Georgalis said a strong demand for residential property along the corridor would only increase once the light rail is complete.

“People are crying out for public transport options and locations that deliver a more sustainable and affordable lifestyle,” Mr Georgalis said.

“Young people, particularly, are rethinking their options. They are realising you don’t need to be a two-car relationship any more; you only need one, and with good public transport you can leave that one at home when you commute to work.”

Geocon’s Northbourne Avenue development Midnight will replace the former NRMA House building and just a handful of the 250-units are still available.

Mr Georgalis said most of the commercial development along Northbourne Avenue was “not utilising its full potential because it is two-storey with on-grade parking”.

“Ultimately, we should have as much density as possible along the light rail route, including high-density commercial and residential,” he said.