It may be small but Canberra is a mighty player in the nation's apartment supply pipeline.
Apartments under construction in the ACT make up 18 per cent of the country's total pipeline, property consultancy firm JLL Research figures showed.
Data from the third quarter of 2021 showed 3845 apartments under construction in the ACT, in addition to 1841 apartments already completed for the year to September.
The data showed 696 plans for apartments had been approved, while 1362 plans were submitted.
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Leigh Warner, national director of research at JLL Australia, said Canberra's apartment pipeline had remained reasonably steady over recent years.
"The pipeline certainly hasn't dropped off in Canberra the way it has in other markets, [where] supply levels are already quite low," he said.
Among the latest development updates, works have begun on Geocon's 797-apartment Wova development in Woden, joining The Melrose by Doma Group and The Shard Woden.
In November, Core Developments submitted plans to build a 410-unit complex in Denman Prospect, dubbed Boulevard.
Canberra's inner north has also seen a wave of proposed and completed developments, including Art Group's Soho precinct, the upcoming Midtown Residences by HTI Group and hundreds of apartments between JWLand's Founders Lane and Geocon's Metropol apartments along Currong Street.
Mr Warner said redevelopment opportunities across Canberra had underpinned the apartment pipeline.
"Redevelopment opportunities along Northbourne Avenue and that area along the light rail has certainly kept the market ticking over in terms of supply," he said.
North Canberra Community Council chairperson Jochen Zeil said while the group believed there was "a need for densification within the urban footprint", more could be done to better integrate large developments within existing communities.
"Many of these new developments don't create communal spaces like parks, playgrounds. They don't create an environment of inclusion," he said.
The size of developments and their effects on traffic were among other common concerns.
"In a more general, global perspective, what we note is that there is practically no or very little social, affordable and supportive housing components although the position of [many of] these developments along the Northbourne corridor ... would be perfect for [it]," Mr Zeil said.
Despite signs Canberra house prices were cooling, apartment prices continued to increase significantly. Canberra unit values rose 2.1 per cent in November, compared to the national average of 0.9 per cent, CoreLogic figures showed.
The median price of a Canberra unit was now $568,308.
Mr Warner said housing affordability constraints were pushing many buyers towards high-density living.
"The affordability of house and land packages on the outskirts of Canberra has declined significantly and this is supporting demand for apartments," he said.
"When you've got to pay $800,000 for a block of land and then build on top of that - it's pushing it out of a lot of first-time buyers' price point."
Meanwhile, investors continued to make up a large portion of Canberra's apartment market.
"Most of the country has moved to this model where the pipeline's been a little bit more dominated by smaller, boutique projects where owner-occupiers have been a lot higher share [of apartments]," he said.
"In Canberra, we've seen a little bit more of a continuation of larger investor [led] product."
Moving forward, Mr Warner expected the growth of apartment prices to soften.
"I think it'll temper a little bit but the sales rates will keep ticking over and keep justifying a solid level of building," he said.
