The change of heart shown by the Land Development Agency on the Red Hill proposal is another indication it recognises the public has little appetite for densification in the established suburbs.

It has now halved the proposed number of homes to replace the dilapidated public housing complex behind the shops and further reduced building heights.

This will no doubt please those who argued against the plans for 550 apartments in six-storey buildings to replace the 144 public housing units at the site.

It is not difficult to understand why many people were aghast when the idea was first floated, even if there was widespread support for the renewal of the aged public housing complex.

It represented a huge change to the local centre of the suburb that would have had consequences for the area – traffic just one of them.

It is not the first time the ACT government has backed down on housing plans that have angered the community and this shows recognition of the importance of compromise.

However, like in the change of plans over the redevelopment of the Yarralumla Brickworks area, it means the Land Development Agency must find dwelling sites elsewhere in the territory to meet its land release targets.

And it is another sign of the challenges faced by the agency in meeting its objective to focus on urban areas for land release rather than greenfield sites.

The balance between enabling Canberra to grow and thrive and yet retain qualities of the quaint bush capital is an ongoing challenge.

But it requires compromise and vision from both the government and the people who call the capital home.

Whatever the outcome for Red Hill will be at least there is wide support to see the back of a type of social housing that is no longer favoured in the territory.

It is not only the tenants of the dilapidated public housing complex who will be cheering when the walls come crashing down next year.