It’s been dubbed a “once-in-a-generation opportunity” to purchase a sprawling block in Hobart’s CBD, and for some, a chance to increase housing density.
The 11,000-square-metre site at 103 Melville Street is owned by the University of Tasmania (UTAS), which bought it in 2019 for $30 million.
Last year, UTAS announced it intended to sell the site to fund other projects, scrapping plans to transform the precinct into a mix of retail, commercial and university spaces.
Now its back on the market zoned as commercial, with the option of building up to six storeys.
Mick Purves, from the Tasmanian branch of the Property Council of Australia, said there were a lot of options for development.
“It would be a really, really good spot for a mix-use proposal where you have retail and commercial at the ground and first level, and then dwellings above that,” he said.
UTAS is selling the old K&D site in Hobart CBD that it had planned to develop as part of its city move. (ABC News: Kate Nickels)
Push for housing not ‘another car yard’
A community group which advocates for development in Hobart wants the site to become medium-density housing.
Community advocate Susan Wallace wants to see housing built on the site. (ABC News: Scout Wallen)
Yes In My Backyard Hobart (YIMBY Hobart) spokeswoman Susan Wallace said it was a “golden opportunity” to increase inner-city housing opportunities.
“We’re constantly pushing the outer urban boundary and people are finding themselves pushed right to the outskirts of the city and thus having to drive cars into the city when they work,” Ms Wallace said.
“Our concern is that it will get developed into either a big box shopping centre, car parking or another car yard for Hobart.”
The site is on a busy street in Hobart. (ABC News: Scout Wallen)
The group wants the state or federal governments to buy the block, or for UTAS to ensure it is sold with housing in the developer’s plan.
In a statement, a spokesperson for the university said they recognised the significance of the site and the potential it held to enhance the city.
The ABC understands UTAS has not placed conditions on the sale to ensure the developer includes housing in the project.
City of Hobart councillor Ryan Posselt said building homes would help increase city density to reduce congestion and enhance the economy.
City of Hobart councillor Ryan Posselt says he will advocate for the site to become residental. (ABC News: Scout Wallen)
“[The site] represents a unique once-in-a-generation opportunity for the city to control what is built on an entire city block,” he said.
“We cannot squander this opportunity and leave it to the private sector to build another big box store car yard or even single-storey development.”
Lack of demonstrated market demand
Mr Purves said governments need to incentivise and de-risk the project for developers, and others like it, by reducing the planning assessment pathway, or by helping provide major infrastructure upgrades.
“Coordinating those types of add-ons to projects like that can be quite problematic, difficult and expensive,” he said.
“What we’ve seen is that these types of sites tend to get a one to two-storey response, which is a pretty low level of development, and we lose that opportunity for more intense projects.”
The site is right in the central business district of Hobart. (ABC News: Kate Nickels)
The Tasmanian Freight Equalisation Scheme, which provides financial assistance for costs incurred for shipping goods over Bass Strait, does not cover building and construction materials and equipment.
Mr Purves said while changing that would help reduce construction costs and provide subsidies for transport, there were still larger issues at play.
“The problem we have is that the development sector isn’t really able to fund and kick those projects off the ground because there is a lack of demonstrated market demand,” he said.
Mayor Anna Reynolds says the council would be willing to provide concessions to a developer with the right plan. (ABC News: Leon Compton)
Lord Mayor of Hobart Anna Reynolds said although purchasing the block of land outright was not feasible for the council, it would be willing to offer incentives.
“We can play a role in waiving rates, waiving fees … and waiving other sort of planning restrictions that add to the costs of the development,” Cr Reynolds said.