The developer has submitted an amendment to the approved Amici development to replace the commercial component with residential units.

The changes would see the number of apartments increase from 58 to 95.

HPI director Barry Morgan said the project on Camilleri Way has continued to adapt to changing market conditions since it was first approved in March 2020.

"This development started as a build-to-sell development, but it's been a volatile time over the last three or four years," he said.

The latest application is the second amendment HPI has sought on the development. The developer submitted an application in December 2020 to replace the commercial component with a motel, which was approved in April 2021.

"We just took a view that over the last few years, the short-term accommodation industry has struggled a fair bit with lockdowns and then the shortage of long-term, residential accommodation has become even more and more severe," Mr Morgan said.

"So we thought [more residential units] was probably the best outcome for the development."

Mr Morgan said apartments were initially released to the market, however a lack of sales steered the project towards a build-to-rent model.

Build-to-rent refers to residential developments where all units are held in single ownership and rented on a long-term basis, as opposed to build-to-sell where individual owners lease to tenants.

"This is our first venture into holding such a large investment asset, it's a bit of a transition into a more passive and more long-term investment and income stream," he said.

"With build-to-rent, it lends a lot of security to renters, whereas quite often they're at the whim of landlords.

"We're building this as an asset to retain in the longer term, so we believe it's going to be a higher quality building and a higher quality level of accommodation than perhaps some of the other build-to-sell developments."

The balance of residential and commercial developments in Gungahlin town centre has previously been raised as an area of concern by the local community.

MORE PROPERTY & DEVELOPMENT:

Peter Elford, president of the Gungahlin Community Council, said while the lack of commercial space is less of an issue in this instance given the development's distance from the town centre, the number of amendments to the application was concerning.

He said while amendments may seem small, consistent minor alternations could lead to substantial changes.

"It's that sort of incrementalism that I'd be concerned about," he said.

Mr Elford said the council would look to discuss the amendment at their next meeting.

Planning documents state the building will remain at seven storeys high and there will be minor changes to the building facade on the ground floor and first floor level. Minor alterations may be made to the basement design, while parking will be reallocated for residential-only use.

HPI aim to complete the development by the end of 2022 for tenants to move in during the first quarter of 2023.

Our journalists work hard to provide local, up-to-date news to the community. This is how you can continue to access our trusted content: