Colonnade BridgePort shrunk proposed project on Argyle Street from 21 storeys to 10 after consulting with city officials, the ward councillor and community representatives.
Project at the site of the Harvey's restaurant near Riverside Drive would feature a mix of more than 300 rental units and 65 hotel suites.
But the recent double-digit increases in home prices has not yet reached problematic levels, Crown corporation says.
The proposal from JB Holdings calls for a midrise building with 49 rental units in the Glebe.
U-shaped building would feature 251 residential suites and about 6,000 square feet of retail space fronting on Beechwood Avenue.
Funds will go toward the construction of 698 residential units in four separate buildings at 811, 818 and 933 Gladstone Ave.
Builders in Ottawa began work on 1,619 new homes last month, a whopping 167 per cent increase over a year earlier, while new starts in Gatineau also rose.
LaSalle Investment Management says it wants to build a 300,000-square-foot tower with 337 rental units and ground-level commercial space.
A flood of new listings last month did nothing to slow the rapid increase in local home prices, the Ottawa Real Estate Board reported Thursday.
Critics say plan would discourage “desperately needed” new investment in rental housing and leave property owners holding the bag for rising utility costs and taxes.