Scaffolding on the partially-built Meriton development at 40 Allara Street sits shoulder-to-shoulder with the Park Avenue apartments next door, while a common balcony space has also been enclosed by a concrete wall.

Ian Mallett and partner Rebecca had not planned on moving into the city, but when a friend in the building suggested they take a look, they were sold on the lifestyle.

Now they dread the day the completed Meriton building stands just metres from their apartment.

Residents say they are not against development, but are perplexed by the planning decisions which have allowed the buildings to sit so close together.

"Everything they've done has been approved by the government," Mr Mallett said.

"I see the issue is with the ACT government, they approve each one of these independently [and] supposedly look at its impact."

Paul Robards, another resident, said city dwellers should not have to compromise on privacy.

"You understand when you buy in a place like this, that there will be other developments around and you'll potentially lose things like your view. It's unfortunate, but you have to accept some of those things - but you shouldn't have to accept that your privacy is going to be impacted in this sort of way," he said.

An ACT Planning and Land Authority spokesperson said it did not identify any privacy concerns in the Meriton development application.

"The assessment undertaken by the Authority did not identify the need for additional privacy," the spokesperson said.

"If lessees agree to further privacy screens this could be considered by the Authority as an amendment."

The Meriton development was also subject to a planning study to address design matters, and was referred to the National Capital Design Review Panel for advice, the spokesperson said.

Mr Robards said the issues began with a lack of adequate consultation.

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While the development application was notified to the public online, and to neighbouring lessees, in March 2021, many of the Park Avenue residents had not yet moved into the then newly-completed building.

An amendment made in a development application approved in June 2022 also meant that plans for a rooftop garden were scrapped to enclose the top levels of the building, changing the impacts on the upper floors of Park Avenue.

"We just want to make sure that people are given the right sort of opportunities to comment," Mr Robards said.

"Ideally, we'd like them to reconsider the design and not have balconies on at least some of those upper levels so you don't have as much of a privacy issue there.

"I guess a fallback position from that would be for Meriton to at least put something there that screens, so that people standing on their side aren't looking across into our bedrooms."

Meriton has been contacted for comment.

The ACT Planning spokesperson said a new planning system which is currently under development would "ensure that the impact of growth and change on social and physical infrastructure can be managed in a way that better facilitates Canberra's liveability".

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