Up to 1,000 new homes will be built on defence land at Dowsing Point in Hobart’s northern suburbs, under a joint deal between the federal and state governments announced today.
Prime Minister Anthony Albanese and Premier Jeremy Rockliff unveiled the plan at Derwent Barracks in Glenorchy this afternoon.
The 31-hectare site, currently home to Australian Army Reserve units, will be redeveloped into what Rockliff is calling “Tasmania’s newest suburb”.
It will include new parks, community facilities, local shops and a future ferry terminal. Social and affordable housing will be in the mix.
The number of homes has more than doubled from the original estimate of 400.
“There’s been greater due diligence around that,” Rockliff said.
“Dowsing Point has the potential to deliver far beyond the 1,000 new homes through well-planned medium-density development,” he said.
“Dowsing Point represents a generational investment in Tasmania’s future – boosting housing supply and supporting jobs.”
But Rockliff dodged repeated questions on how much the state would pay for the land.
Pressed three times on whether there was a price threshold the state would not exceed, he would not commit to a cap.
“This is a very positive co-investment of which will be very good value for Tasmanian taxpayers’ money,” he said.
He said the state would access federal infrastructure funds as part of the deal.
Rockliff said he first wrote to Albanese about the site in late 2023. The prime minister said the deal balanced defence and housing needs.
“The federal government is delivering on its commitment of a fit for purpose estate for our defence forces, while also opening up opportunities for better community use of divested land,” he said.
“All proceeds from property sales arising from the Defence Estate Audit will be reinvested back in defence.”
The site is currently home to around 20 full-time Australian Defence Force personnel, along with reservists and cadets.
The transfer of personnel is expected to take at least 12 months. The Defence and Veterans Workshop will remain on site.
Any transfer to the state will be subject to market value and mutually acceptable terms, including access to the federal Housing Support Program – Local Infrastructure Fund.
Rockliff envisaged the homes being delivered within a decade, alongside the planned Wilkinsons Point retail and hotel precinct next door.
The Housing Industry Association welcomed the announcement, with Tasmanian executive director Benjamin Price saying it was a strong opportunity for Hobart.
“Using surplus public land for housing is one of the most direct ways governments can help boost supply,” Price said.
Planning work will continue over the coming months.
