Construction has started on a new $300 million residential complex at 70 Allara Street, which will add more than 300 apartments to Canberra's housing market when complete.
Developer Geocon turned the first sod on Tuesday morning, with founder and managing director Nick Georgalis hailing the project as an important one in a "starving residential market".
He said the project would "help with the housing crisis" but that it was "only the tip of the iceberg to solve the problem".
"We're certainly committed to delivering more projects in the ACT," he said.
"But this represents a very exclusive opportunity because it is one of the few projects over the next two or three years that's going to be delivered in Canberra's CBD."
Mr Georgalis said the development would "set a new standard for luxury living in the region".
Named The Grande on London, it includes 332 apartments across three multi-storey buildings, with two levels of basement parking that will be able to house 409 cars and 90 bicycles.
Mr Georgalis said more than 130 apartments have been sold to date, with 30 per cent of those going to owner occupiers and the rest to investors.
Residents will have access to a number of amenities, including a rooftop pool and a library. There will also be a commercial space on the ground floor.
Mr Georgalis said 20 per cent of the apartments will face Lake Burley Griffin.
"I'd say it will be in the top five complexes in the ACT and anything that does face the lake represents a very unique opportunity," he said.
Geocon purchased the site, a former defence compound, for $24 million from the federal government in 2020.
Mr Georgalis said the proposal received approval late last year after a development application, community consultation and research process.
The Canberra Times previously reported that residents in the neighbouring apartment complex raised concerns about traffic and property overshadowing with The National Capital Authority.
On Tuesday, Mr Georgalis said "these issues have been addressed".
Around 350 to 400 people are expected to be involved in the construction.
Developers expect the project to be completed and ready for residents to move in by the end of 2025.
