Fri, 6 Nov 2026

Kappelle lodges 151-unit, A$70m Forrest plan after rezoning

Kappelle Projects has lodged a proposal for two eight-storey buildings with 151 units on the former Italian Club site in Forrest; comment closes 2 December.

Illustration for: Kappelle lodges 151-unit, A$70m Forrest plan after rezoning
Illustration. A representative image, not a photo of the site named in this story.
151units proposed
A$70 millionproject cost
26 mheight limit

Kappelle Projects has lodged a development application for two eight-storey buildings with 151 units on the former Italian Club site in Forrest (Canberra), Region Canberra reported on 6 November. The proposal follows a rezoning that took effect in June and replaces an earlier hotel plan that has since lapsed. It is a proposal only. No decision has been made.

The site is Block 9 Section 19, on the corner of Franklin Street and Dominion Circuit. Region Canberra says it is currently a Wilson carpark, used mainly by Services Australia Finance employees, and covers 5,450 sqm.

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Why it matters

Region Canberra reports that Major Plan Amendment B commenced on 17 June 2026. The amendment moved Blocks 5, 6, 9, 11 and 12 of Section 19 in Forrest out of the RZ1 Suburban and CZ6 Leisure and Accommodation zones and into CZ5 Mixed Use, which allows more density. Site-specific provisions for Block 9 cap building height at 26 metres and address vehicle access from Dominion Circuit, landscaping, noise and overlooking.

The outlet says an earlier proposal for a 227-room hotel on the site was approved but has lapsed, and had also faced an unsuccessful challenge in the ACT Civil and Administrative Tribunal.

Region Canberra describes the plan as a major change to the streetscape. The Franklin Street side faces office buildings on Canberra Avenue, while Dominion Circuit has low-rise homes. The outlet also notes that losing the carpark will affect office workers.

The numbers

According to Region Canberra, the buildings would sit around a landscaped courtyard on a two-level basement, and the application proposes splitting the block into two, with a 63-unit building and an 88-unit building. The outlet reports a cost of A$70 million.

The unit mix is 29 studio and one-bedroom apartments, 89 two-bedroom, 32 three-bedroom and one four-bedroom. Two-bedroom units run from about 82 to 126 sqm and three-bedroom units from about 105 to 124 sqm, which the outlet says exceeds minimum size guidelines. There would be a gym and a courtyard about 25 metres wide.

Six trees would be removed, four on the site and two on the southern verge. About 30% of the site would be deep soil, supporting 38% canopy planting, the outlet reports.

Access would change. A new vehicle entrance would open on Dominion Circuit, the two existing Franklin Street driveways would close, and a residents-only pedestrian entrance would be on Franklin Street.

What’s next

Public comment on the application is open until 2 December, Region Canberra reports.

On tenure, the outlet says the Crown lease is market-value and that the proposed variation is subject to Lease Variation Charges. Kappelle declined to comment for the article. Region Canberra does not name an architect.

Territory land supply and prices: urban growth boundary and house prices. This story is based on Region Canberra’s reporting.

Quick answers

Did Kappelle lodge 151-unit in Canberra?

Kappelle Projects has lodged a proposal for two eight-storey buildings with 151 units on the former Italian Club site in Forrest; comment closes 2 December.

Which companies are named in the Italian Club site, Forrest (Canberra) story?

Kappelle Projects is named in this story, which cites Region Canberra.

What are the key numbers for Italian Club site, Forrest (Canberra)?

units proposed: 151; project cost: A$70 million; height limit: 26 m.

Sources

How we report →

Filed by the AusDev Canberra Desk. How we report.

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