Rezoning bid could reshape Kaleen with new housing and retail precinct

Kaleen's future could look dramatically different under a new rezoning proposal handed down this week by the ACT Planning Directorate. The plan, unveiled at a community consultation at Kaleen High School last night, seeks to reclassify a 38-hectare swathe bounded by Baldwin Drive and Maribyrnong Avenue from low-density residential to mixed-use and higher-density residential.

Pressure on space and affordability

The move comes as ACT faces record-low rental vacancies—Yardi Matrix last month put Canberra’s rate at just 0.8%—and rising median house prices now nudging $835,000. Kaleen, tucked between Bruce and Giralang, has been largely untouched by recent densification, but planners say it’s time to unlock underutilised land as nearby Gungahlin and Belconnen intensify. The rezoning would permit townhouses, up to six-storey apartment blocks, and a compact retail precinct, potentially delivering more than 1,000 new homes within walking distance of the North Local Centre on Georgina Crescent.

The Greens have long argued for higher-density infill to relieve pressure on greenfields sites in West Belconnen. ACT Government’s Affordable Housing Action Plan, now in its fourth year, identifies Kaleen as a potential corridor for redevelopment due to good bus links and proximity to UC Hospital and the Belconnen employment hub. Local traders at the Kaleen Plaza say more homes could boost foot traffic, while some residents worry about congestion and changing streetscapes. The proposal would also introduce cycle paths connecting to the Ginninderra Drive arterial and public open spaces including the Kaleen Playing Fields.

Numbers driving the proposal

ACT’s latest population projections, released in June, expect 62,000 more residents across Canberra by 2032. Kaleen, currently home to just over 7,000 people, would see a 25% spike in population if even half of the planned new dwellings are built. Planning documents anticipate around 100,000 square metres of new construction, based on comparable density targets set in nearby Lawson, where median unit prices have reached $635,000 this winter. Auction clearance rates across the inner north are holding around 65% according to Domain data, well above the national average as buyers seek out well-connected suburbs.

The rezoning would unlock substantial development sites currently in the hands of the Suburban Land Agency and a handful of private landowners along Diamantina Crescent. The Territory Government estimates new supply could help ease pressure on public servants priced out of newer Gungahlin estates. A key proposal element is a 3,500-square-metre mixed-use site earmarked for supermarket and café tenants, all within easy reach of Kaleen Primary School and the University of Canberra’s campus.

ACT Planning’s director, Jamie Grace, said the statutory notification period opened on Monday. Residents have until 22 August to lodge submissions, with community drop-in sessions scheduled at the Kaleen Sports Club over the next month. If approved, development applications for individual sites could be lodged as early as Q2 next year. Local buyers and renters eyeing any move should keep an eye on the ACT Planning site for updates as the rezoning process moves forward. For now, the future shape of Kaleen is entering a new phase of local debate.