A new six-storey mixed-use development could be built in the Dickson town centre after a large block of land was put on the market for redevelopment.
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Number 4-10 Cape Street is being sold through an expression of interest process closing on November 14.
The 7284 square metres of land sits between the Coventry mixed-use apartment complex and the Quality Inn Dickson.
It includes a car park and the Cape Street Centre, which is the site of 10 businesses on largely month-to-month leases.
Businesses include the Dickson Liquor Store, Saigon Asian Grocery, Pho Phu Quoc Vietnamese Restaurant, Dickson Mufflers, and St Vincent de Paul, which has a longer-term lease.
The annual gross income for the site is about $487,737.
The information memorandum for the sale indicates the land has a conditionally approved Crown lease, which allows for residential and commercial uses with no gross floor area limitations.
The Dickson Master Plan, which was approved by the ACT government earlier in the year, allows for a building height of six storeys along Cape Street.
An initial assessment completed by Kasparek Architects shows about 166 one, two and three-bedroom units and up to 3000 square metres of ground floor commercial space could be built on the site.
The brief proposed a mixed-use development with ground floor space for retail, restaurant, shop and/or drink establishments and five levels of residential use.
The land is being sold through CBRE and Ray White Canberra.
CBRE ACT managing director Andrew Stewart said there had already been significant interest shown in the site because it would be the first release of its kind in the suburb for several years.
He said there were no alternative development sites in Dickson and no new mixed-use proposals were mooted for that particular shopping complex.
Mr Stewart said some potential buyers had been interested in the possible rise in property values when the proposed Dickson light rail hub was built nearby.
He said the local investment syndicate that owned the land had been working on proposals for the site for several years.
Colliers International ACT state chief executive Paul Powderly said there would be strong demand for the site because of the opportunity to develop more units in an area with a shortage.
He said while there was a perceived oversupply of apartments in the Canberra market, areas such as the inner north and inner south did not have excessive numbers.
"I think the oversupply is focused is some locations - you have certainly got an oversupply in Molonglo and a future oversupply in Belconnen, and in Gungahlin," Mr Powderly said.