Green light for $185m mixed-use tower set to reshape Hobart's northern CBD

Hobart's planning authority has granted conditional approval for a major mixed-use development that will introduce 240 new apartments, ground-floor retail and office space to the northern CBD corridor—a decision that signals accelerating renewal of the city's aging commercial precinct.

The $185 million project, approved by the Hobart City Council's development assessment panel on Monday, will occupy a prominent site on Argyle Street between Davey and Murray streets. The 22-storey tower represents the tallest residential development greenlit in Hobart since 2018 and comes as the Tasmanian capital confronts an acute supply shortage in established suburbs.

"This approval reflects genuine momentum in our CBD," said a council spokesperson. "We're seeing investor confidence return to inner-city living, and this project bridges that gap between Hobart's heritage character and contemporary urban demand."

The development is expected to deliver a mix of studio, one, two and three-bedroom apartments, with pricing anticipated between $450,000 and $780,000—aligning with the broader Tasmanian median of approximately $560,000 but pricing out first-home buyers still seeking value. Around 15 per cent of apartments have been earmarked as affordable housing in response to council planning requirements.

The approval comes at a critical juncture for Hobart's inner core. While premium pockets like Sandy Bay and Battery Point continue to dominate lifestyle migration demand, pressure is mounting to activate the CBD itself. Recent lifestyle-driven population growth—with interstate arrivals accelerating post-pandemic—has tightened rental markets and strained housing inventory across greater Hobart.

Street-level activation will be a central feature: the development incorporates 2,100 square metres of retail and hospitality space, along with a public plaza adjacent to Franklin Wharf precinct. Planners have mandated car parking at 0.6 spaces per apartment—a deliberately modest ratio designed to encourage public transport use and pedestrian connectivity.

Conditions attached to the approval require the developer to contribute $1.2 million toward transport infrastructure and commit to LEED or equivalent sustainability certification. Traffic impact assessments and heritage compatibility reviews remain outstanding.

The project signals confidence at a time when similar developments face headwinds in Sydney and Melbourne due to elevated interest rates and construction costs. Tasmania's continued appeal to interstate migrants—combined with entry-level pricing still accessible by national standards—continues to underpin developer interest.

Construction is expected to commence in Q2 2027, with practical completion targeted for late 2029. The development will operate alongside emerging alternatives in Launceston, where similar CBD renewal strategies are gaining traction as the region positions itself as a secondary centre for lifestyle migration.

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