Zoning that restricts large parts of Canberra's suburbs to detached housing would be abandoned under an ACT Greens plan to allow townhouses, terrace houses and dual occupancies across the city.
The party wants to upzone all land currently designed RZ1 - which is largely limited to detached housing - to the RZ2 standard, in an effort to encourage "missing middle" housing styles.
City limits would also be set if the Greens' position was adopted, which would place a hard cap on new greenfield development on the capital's fringes.
Jo Clay, the Greens' spokeswoman on planning, said other political parties wanted voters to believe solving the housing crisis required concreting over green space and developing on Canberra's outskirts.
"That wrecks our environment, locks in heat islands, and it's expensive for the government to build all those new roads, transmission lines and services to support the sprawl," Ms Clay said.
"We're in a cost-of-living crisis and living on the outskirts costs Canberrans more time and money. It locks people into paying for a car and petrol for every trip they take.
"Transport is responsible for over 60 per cent of climate pollution in the ACT. A more compact, convenient city is part of our fight against climate change, the housing crisis and cost of living."
The party wants to upzone other blocks near local shops, public green spaces and parks and on public transport corridors.
"Upzoning should allow low rise [three- to four-storey] development on consolidated blocks with big shared green spaces so everyone gets a backyard, like those we have in Kingston," the party's policy paper said.
The Greens also want to upzone land in central Canberra and along the second stage light rail route.
"We should allow townhouses and apartments there unless the area is in an existing heritage overlay (like Reid)," the party said.
Suburbs already under construction - including Ginninderry, Gungahlin, Lawson, Taylor, Throsby and Whitlam - should be completed and then a clear boundary set on further development, the Greens said.
"Melbourne set an urban growth boundary in 2002 and Adelaide has had one for 30 years. They're also in place in Portland, Vancouver and many other parts of the world," the party's policy paper said.
A Property Council-commissioned report, released this week, found nearly 60,000 new homes could be built in Canberra if the government agreed to "upzone" more suburban land in a scheme focused on blocks closer to transport, shops and services.
The Purdon report recommended upzoning all RZ1 blocks larger than 700 square metres to current RZ2 rules, and upzoning RZ1 blocks to RZ3 when they score on a size and quality index above 70 per cent.
The government on Wednesday finalised the territory plan under the outcomes-based planning system adopted late last year.
The final plan introduces clarifications on height requirements, planting areas, urban heat island effects, and energy efficiency.
A re-elected Labor government has committed to considering "major" amendments next year to allow duplexes, townhouses and row houses and other missing middle housing on RZ1 blocks.