Homes Tasmania will get first dibs on a 6,598-square-metre block of council-owned land in Glenorchy, with plans to build dozens of affordable housing units.
The Glenorchy City Council has unanimously agreed to explore handing over the land at 318 Main Road to the housing provider, in a move aimed at easing pressure from the region’s growing housing crisis.
The steep, landlocked site next to Eady Street Reserve could fit up to 56 affordable units, according to discussions at Monday night’s council meeting.
Alderman Steven King said the idea, first floated a decade ago, would turn a hard-to-maintain patch of council land into much-needed homes.

“It allows potential housing to take place, inner-city housing, which is so close to supermarket and facilities,” he said.
Currently zoned for medium to high-density residential development, the site has limited access but would link up with neighbouring Homes Tasmania property on Windsor Street.

Council officers said the deal with Homes Tasmania would ensure that the land be used for affordable housing, rather than being land-banked or sold off for just one home on the open market.
“Their sole purpose is around providing these medium-density affordable housings is why we’ve proposed an exclusive deal,” a council officer said.
The council will now begin community consultation, including letterbox drops to nearby residents, before making a final call on whether to proceed with the sale.
Mayor Sue Hickey called the proposal a “win-win” that aligns with the council’s housing goals while making productive use of “pretty useless” council land.

“This is potentially unloading a piece of land that we just have to mow and maintain, which is quite a waste of valuable land,” she said.
“And we have the opportunity to help Homes Tasmania provide 56 valuable units or homes to potentially families in need in these critical times.”