Hobart residents demand answers on waterfront development as council splits on Sally Ann Street project

Tensions are mounting in South Hobart as residents and business owners affected by proposed waterfront development told the Hobart City Council on Monday they feel sidelined in planning decisions that could reshape their neighbourhood within 18 months.

The Council's Planning Committee heard from dozens of community representatives during a three-hour session about the Sally Ann Street redevelopment project, which would consolidate aging retail and residential spaces into mixed-use towers. The $280 million proposal has divided opinion among the seven councillors, with three voting to progress community consultation and four calling for an independent impact assessment.

"Nobody asked us properly," said representatives from the Sullivans Cove Traders Association, which counts 34 small businesses along the affected strip. Operators expressed concern about rent increases during construction, with preliminary estimates suggesting commercial rates could rise by up to 35 percent over three years.

The development would affect roughly 120 residential units currently occupied, with relocation assistance capped at $15,000 per household under the council's current proposal—a figure community advocates say falls well short of South Hobart's median rent of $480 per week.

Local residents told the Council their voices have been marginalised since the project entered planning stages last October. One neighbourhood group shared a petition signed by 1,247 residents requesting a six-month extension to the consultation period, citing inadequate notice of public forums held during standard business hours.

"Working families can't attend 10 a.m. meetings on a Tuesday," representatives from the South Hobart Community Alliance noted in their formal submission.

The Council debate reflects broader tensions across Tasmania's major urban areas regarding the pace and nature of urban densification. Councillor submissions indicate disagreement over whether the project prioritises commercial development over affordable housing preservation. Current zoning allows buildings up to 12 storeys; the proposal seeks permission for 15.

Council will reconvene on July 13 to discuss next steps. If approved for further consultation, community input sessions are scheduled for August at venues including the Hobart Town Hall and several South Hobart primary schools, with evening sessions planned to accommodate working residents.

Project developers have committed to increasing affordable housing allocation from 12 percent to 18 percent should the scheme proceed, though advocates argue this remains insufficient given displacement pressures already evident in surrounding areas like Battery Point, where median property values have risen 28 percent since 2023.

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