Hundreds of new homes could be unlocked across Hobart's inner city under a new City of Hobart incentive designed to get approved housing projects built.
The Hobart Inner City Housing Supply Incentive Policy targets one of the city's biggest housing challenges - the gap between developments that have planning approval and those that actually proceed to construction.
The policy will focus on multi-dwelling developments of five or more homes, as well as the conversion of upper floors of existing buildings into residential use, across central Hobart, North Hobart and the waterfront.
A key feature of the policy is a five-year, 100 per cent rates remission for eligible developments, alongside the potential reimbursement of development application fees.
The incentive will apply from the financial year in which construction begins.
Hobart Lord Mayor Anna Reynolds said the policy was about removing barriers to delivery.
The policy includes clear eligibility criteria and governance arrangements to ensure developments are ready to proceed, including requiring all necessary approvals and, where applicable, review by the Urban Design Advisory Panel.
The City's contribution would form part of a broader effort to support housing delivery.
Hobart currently has a significant gap between approved developments and those being built, with around 900 approved dwellings yet to be delivered.
The City will monitor uptake of the incentive and review its effectiveness after an initial implementation period.
Clear public information on eligibility and how to apply will be made available as the policy is rolled out.
Quotes to be attributed to Hobart Lord Mayor Anna Reynolds:
"Right now, the issue in Hobart isn't planning approvals - it's getting projects out of the ground and built.
"We know there are hundreds of approved dwellings that haven't progressed to construction.
"This policy is about unlocking that supply and getting more homes built where people want to live - close to jobs, services and public transport.
"But our incentive on its own won't shift every project, which is why we are continuing to work with TasWater and the Tasmanian Government to strengthen the overall package.
"We're also progressing further work on tools like inclusionary zoning and density bonuses to support more affordable housing outcomes over time."
Quotes to be attributed to Property Council of Australia Tasmania Interim CEO Michael Kerschbaum:
"The Property Council is delighted to endorse this initiative by the City of Hobart.
"With the adoption of this policy the City of Hobart has demonstrated real leadership. It has proven that is serious about doing what it can to encourage housing options in its municipality.
"The Inner City Housing Supply Incentive Policy will provide tangible benefits that address some of the real world problems that developers face in trying to make inner city housing add up."
Picture: Hobart Lord Mayor Anna Reynolds and Property Council of Australia Tasmania Interim CEO Michael Kerschbaum outside the former Motors showrooms on the corner of Macquarie and Barrack streets. This site had a development application approved for an $80 million project to build 56 apartments, but has not begun due to construction costs.
