The transformation of Canberra’s Molonglo Valley into a vibrant, sustainable urban precinct is approaching a key milestone.
The release of Denman Prospect Stage 3 marks not just the final chapter in the suburb’s development but a bold opportunity to shape the future of urban living in the Australian Capital Territory.
This 40-hectare englobo site offers developers a rare canvas.
With zoning in place for up to 2,950 dwellings – encompassing medium and high-density residential, commercial, and community uses – Stage 3 will complete the arc of Denman Prospect’s evolution from greenfield to fully integrated neighbourhood.
“The goal here is to deliver a diverse and high-quality residential precinct that integrates with what’s already happening in Stages 1 and 2 and with the future Molonglo Town Centre,” says Adam Davey, CEO of the Suburban Land Agency (SLA).
“This is a key location, literally across the road from where Canberra’s sixth town centre will be.”
A strategic launchpad
Denman Prospect Stage 3 has been deliberately designed for higher density in a prime location. Adjacent to John Gorton Drive and opposite the upcoming Molonglo Town Centre, the site is envisioned as a walkable, people-focused extension of the broader Molonglo urban strategy.
Like earlier stages, Stage 3 will be delivered via a single englobo tender, allowing a developer to shape the entire precinct in alignment with the ACT’s planning goals.
“We want someone who can think about the whole site – its proximity to the Molonglo River, its connectivity to natural and urban assets – and really plan it out thoughtfully,” Davey says.
The decision to go englobo also supports rapid land release and offers flexibility in how the development unfolds. The SLA has successfully used this approach in previous stages and sees it as a proven model.
Integrated with the future
Crucial to Denman Prospect Stage 3’s appeal is its seamless integration with the Molonglo Town Centre, a 97-hectare hub recently reclassified as Canberra’s sixth town centre under the National Capital Plan.
The future town centre will feature a main commercial precinct, retail and service trades, a high school and college, district library, and expansive green spaces stretching five kilometres along the Molonglo River.
By 2050, the Molonglo Valley is projected to house nearly 70,000 residents. Within the town centre alone, around 15,000 people are expected to live, supported by approximately 7,500 dwellings. Public transport and active travel will be central to the precinct’s design, emphasising walkability and reducing reliance on cars.
“It’s going to be the commercial and community heart of this growing district,” Davey says.
“Anyone developing Denman Prospect Stage 3 has to think about how people will move, how they’ll live and how they’ll access services.”
Built for community
Denman Prospect Stage 3 zoning includes RZ4 and RZ5 residential, CZ5 mixed-use commercial, CFZ for community facilities, and PRZ1 urban open space. The yield mix includes 144 affordable, 207 community, and 60 public housing dwellings. These targets are secured via a delivery deed, which can include dedicated sites handed back to the SLA for reallocation to not-for-profit housing providers.
“We’ve got mechanisms to ensure that social and affordable housing is embedded in the fabric of the suburb – not clustered but integrated,” Davey says.
That ethos of integration extends to open space and public realm design.
Developers are required to deliver landscaped areas near Cravens Creek, Cravens Creek Pond, and the Molonglo River Reserve.
“How would you design a people-focused suburb without that connection to nature?” Davey asks.
“The ACT planning system is outcomes focused and combined with the creativity and thought we’ve seen in the development of the earlier stages of Denman Prospect, we anticipate a similar approach will be taken.”
Governance and coordination
Behind the scenes, SLA works closely with other ACT Government agencies including the City and Environment Directorate, Education Directorate and Infrastructure Canberra to align infrastructure delivery.
The school site included in Denman Prospect Stage 3, for instance, has been designated in response to Education Directorate planning.
“You have to think about all the families converging on that school every day,” Davey says.
“Accessibility, connection to public transport, access to playing fields – it’s a lot to coordinate, but we’ve been working on this with the relevant directorates from the start.”
A critical link
Also integral to unlocking Denman Prospect Stage 3 is the Molonglo River Bridge – a significant piece of infrastructure that will connect north and south Molonglo.
The bridge includes a services corridor (for power, water and telecoms), and its completion is crucial to the full rollout of residential and commercial sites in Denman Prospect and beyond.
“It’s essential for development and also for liveability,” Davey says.
“It’ll reduce congestion and enable better access across the region.”
Next steps
SLA must balance commercial viability with delivering public value. As the ACT’s government land developer, it is tasked with securing financial returns for the Territory while also championing design quality and inclusivity.
“That dual role is always present,” Davey says.
“We’re constantly reviewing our approach to ensure we get the best outcome – not just financially, but socially and environmentally.”
Tender documents for Denman Prospect Stage 3 are now available via Tenders ACT. SLA has appointed Civium as sales agents for the site.
“We’re excited to see what vision comes forward,” Davey says.
“This is the final piece in a really ambitious project. It’s not just about housing numbers – it’s about creating a community that works for decades to come.”
