Building bonanza changing face of Qbn

The increase in construction projects has the potential to change the face of the city, with infill development accounting for the majority of applications received by the Queanbeyan City Council in 2010-11.

Mayor Tim Overall said the consequential influx of young buyers could also help revitalise the city centre.

''Most of Queanbeyan's residential development has been infill close to the city centre,'' he said.

''There's a lifestyle change coming into play.''

During the 2010-11 financial year, Queanbeyan City Council received 344 development applications, including 39 applications for single houses and 270 for multi-unit dwellings.

The submissions had a total value of $126.2 million, up from 2009-10 figures which recorded 359 development applications worth $79.2 million.

Shane McNamee, director of Queanbeyan-based Ian McNamee and Partners Real Estate, said the city was attracting a new kind of developer looking to build products that would ''stand up architecturally''.

''There is a gentrification process happening in town and you've got renowned architects that are utilising town planners [and] putting a lot of thought into design,'' he said.

''There are a number of things that are coming together to have a strong impact on the image of Queanbeyan.''

Mr McNamee said the city's development boost and its consequent gentrification was also being driven by ACT buyers, who were being drawn across the border by state government incentives.

''Because of the stamp duty exemption for all purchases when you buy off the plan, there is strong interest from buyers who may have otherwise purchased in Canberra,'' he said.

''They're probably $20,000 better off by way of not having to pay any stamp duty. It makes a big difference.''

The tax burden on Canberra's real estate market has been highlighted by the Property Council of Australia, which said the tax on the property industry is six times greater than the average in the capital.

In its submission to the ACT government on the budget for 2012-13, the council's ACT division called for the abolishment of stamp duty. But executive director Catherine Carter said it was more than tax exemptions driving local buyers across the border.

''For many people, the proximity of Queanbeyan to Civic is a good option,'' she said.

''That counts further when they're able to buy less expensive homes across the border.''

Ms Carter said there was also increased incentive for developers in Queanbeyan.

''Queanbeyan City Council has a fairly can-do attitude to getting things happening,'' she said.

''The ACT has been challenged in the last few years with getting things online. It's been frustratingly slow in some parts of Canberra with land release.''

This reporter is on Twitter: @stephanieando