The federal and state governments have announced a joint agreement to construct up to 1,000 new homes on defense land at Dowsing Point in Hobart’s northern suburbs. Prime Minister Anthony Albanese and Premier Jeremy Rockliff unveiled the redevelopment plan this afternoon at Derwent Barracks in Glenorchy.

The 31-hectare site, which currently houses Australian Army Reserve units, is intended to be transformed into what Premier Rockliff described as “Tasmania’s newest suburb.” The development is expected to feature local shops, community facilities, new parks, and a future ferry terminal, with social and affordable housing integrated into the plan.

Expanded Housing Targets

The projected number of residences has more than doubled from an initial estimate of 400 homes. Premier Rockliff attributed this increase to “greater due diligence” and suggested that well-planned medium-density development could potentially deliver more than 1,000 homes.

Expanded Housing Targets
Hobart military site

Rockliff characterized the project as a “generational investment in Tasmania’s future” that is intended to support jobs and boost the overall housing supply.

Did You Know? The number of planned homes for the Dowsing Point site has more than doubled, rising from an original estimate of 400 to up to 1,000.

Financial Terms and Infrastructure

Despite the announcement, Premier Rockliff declined to commit to a specific price cap or threshold regarding how much the state will pay for the land. He stated that the co-investment would represent “very decent value for Tasmanian taxpayers’ money.”

The state intends to utilize federal infrastructure funds as part of the deal. Any official transfer of the land will be subject to mutually acceptable terms and market value, including access to the federal Housing Support Program – Local Infrastructure Fund.

Expert Insight: The transition of surplus military land into residential zones is a high-impact strategy for rapid supply growth. However, the Premier’s reluctance to set a firm price cap indicates that the final financial burden on the state remains a key variable in the project’s long-term fiscal viability.

Defense Transition and Timeline

The site currently supports cadets, reservists, and approximately 20 full-time Australian Defence Force personnel. The transfer of these personnel is expected to take at least 12 months, though the Defence and Veterans Workshop will remain on the site.

Affordable housing plan announcement

Prime Minister Albanese noted that the deal balances housing needs with the commitment to maintain a “fit for purpose estate” for defense forces. He confirmed that all proceeds from property sales resulting from the Defence Estate Audit will be reinvested into defense.

Future Outlook

Premier Rockliff envisions the delivery of these homes within a decade. This timeline may align with the development of the planned Wilkinsons Point retail and hotel precinct located next door.

Future Outlook
Tasmania new housing development

Benjamin Price, executive director of the Housing Industry Association in Tasmania, welcomed the move. Price stated that using surplus public land is one of the most direct methods for governments to increase housing supply.

Planning work is likely to continue over the coming months to refine the suburb’s layout and infrastructure.

Frequently Asked Questions

What amenities will be included in the Dowsing Point development?
The new suburb will include new parks, local shops, community facilities, and a future ferry terminal, as well as a mix of social and affordable housing.

Will all defense facilities be removed from the site?
No, while most personnel will be transferred, the Defence and Veterans Workshop will remain on site.

How long will it take for the housing to be delivered?
Premier Rockliff has envisaged that the homes will be delivered within a decade.

Do you believe the redevelopment of surplus government land is the most effective way to address housing shortages in growing cities?