Local developers the Doma Group have paid more than $11 million for the last available block of land on Kingston Island.
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The block of almost 7000 square metres was sold through a tender process that closed at the beginning of the month.
The development of up to 120 prestige dwellings and commercial and retail spaces will be the Canberra company's fifth project at the Kingston Foreshore.
The Doma Group also purchased one of two original sites on the man-made island in 2009 for $9.8 million and constructed the Bridge Point development. The other site, now the Lake Front apartments, was sold to Amalgamated Property Group for $14.2 million in the same year.
Doma Group director Jure Domazet said he considered the remaining block of land on the island the best site in Canberra.
He said the area was really starting to live up to its potential and people could now see what had been planned.
"We're very confident in the area and I guess over the years we've been at the Kingston Foreshore this is what was promised from day one and it's finally been delivered," Mr Domazet said.
"The public infrastructure's terrific and the buildings around here are really nice, as I see people moving into the area ... you can see the vibrancy of what was promised is actually starting to come true."
He said the company had just finished Dock Side at the foreshore, which was almost sold out, while Bridge Point was about 80 per cent sold.
The company will build the maximum number of dwellings on the new site and will now begin the detailed design process for the development.
The Land Development Agency had previously planned to release the land as two separate blocks but decided to sell it as one as that was the best configuration for basement parking.
CBRE ACT managing director Andrew Stewart, who marketed the land, said there had been inquiries from local and national developers.
But he said it was good to see a local developer with a strong link already to the foreshore decide to reinvest in the area. The $11.7 million sale was described as a competitive tender process.
The Land Development Agency had required the successful tenderer to carry out significant works on the site, including completing the harbour wall.
The Canberra Times understands the ACT government is also preparing to release further blocks of land at the foreshore by the end of the year.
It is believed the three sites, all set to be four to six-storeys under the Territory Plan, will be located across the lake opposite the new boat harbour.
Two sites, offering 161 and 67 dwellings, will face the Kingston Harbour and one site, allowing up to 75 dwellings, will face Jerrabomberra Creek and wetlands.
