Hobart Derwent Barracks site slated for up to 1,000 homes

Tasmanian and federal governments have announced early planning for a housing development of up to 1,000 homes at the Derwent Barracks site in Dowsing Point, in Hobart's north. The 31-hectare waterfront site is set to be sold as part of a national defence estate divestment, with the proposal described as a joint co-investment involving federal, state and local government. The plan would replace the barracks with a mixed housing precinct rather than a single-tenure development.

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According to the announcement, the site could accommodate a mix of social, affordable and private housing. The early concept also includes family homes, townhouses and medium-density options, along with open space and community infrastructure. The commercial value of the land and the timeline for development have not yet been determined, and the proposal remains at an early planning stage.

Prime Minister Anthony Albanese said a mixed approach was one of the advantages of a site such as this. Tasmanian Premier Jeremy Rockliff called the proposal a "no-brainer" and said the land was under-utilised. Assistant Defence Minister Peter Khalil said defence sites in the divestment programme would go through a valuation process through the Department of Finance.

The announcement comes as Hobart continues to face intense housing demand and tightening rental availability. A development of this scale on a large government-owned site could add supply in a city where housing pressure has been a persistent issue. The inclusion of social and affordable homes also gives the proposal a public policy dimension beyond the sale of surplus defence land.

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The Derwent Barracks site at Dowsing Point had already been slated for divestment in February as part of a national defence property sell-off. The location is about 10 kilometres from Hobart's central business district and has access to key transport routes and the nearby suburb of Glenorchy. That makes it a strategically significant parcel for urban redevelopment, particularly given the size of the site and its waterfront position.

What remains unclear is how much the land will fetch, how the project will be staged, and when construction could begin. The governments involved have not yet set a delivery timetable, and the planning work is still preliminary. Further detail is expected once valuation and development processes progress through the relevant departments.

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