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{{propApi.successMessage}} {{region}} Change locationNew HIA report calls for action to unlock Tasmania's housing supply
New HIA report calls for action to unlock Tasmania's housing supply
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The report, Gentle Density: Unlocking Subdivision, finds Tasmania must deliver more than 5,000 new homes each year to meet its share of the National Housing Accord, with Tasmania not even meeting 50 per cent of the target.
Current planning settings continue to restrict infill development in established, well located suburbs. HIA says rigid minimum lot sizes, particularly in General Residential and lower density residential zones, are acting as a structural barrier to housing supply, affordability and choice.
“Tasmania’s housing challenge isn’t a lack of demand, it’s that too much well located land is effectively locked up by outdated planning rules,” said HIA Executive Director Tasmania, Benjamin Price.
The report shows land prices are now the primary driver of housing affordability pressures, with land values rising more than 500 per cent nationally since 2000. Allowing smaller, market led allotments is one of the most effective ways to reduce the upfront cost of new housing.
“Every unnecessary planning constraint adds cost. Smaller, well designed lots can deliver more homes, more quickly, without changing the character of our suburbs,” Mr Price said.
While the report is focused on subdivision and infill, HIA notes that the need for broader residential planning reform in Tasmania has already been well established.
The Tasmanian Government’s ‘Improving Residential Standards’ review, which commenced in 2023, identified that many residential controls in the Tasmanian Planning Scheme are outdated and no longer fit for purpose, particularly when it comes to enabling medium and higher density housing in well located areas.
“The Tasmanian Government’s Improving Residential Standards reforms represent a significant step forward for residential planning,” Mr Price said. “The Tasmanian Government should be commended for that.
“However, this review began in 2023, the Government committed to implementation before the end of 2025, and it is now 2026 with these reforms still not in effect.
“Tasmanians need these changes delivered as soon as possible if we are serious about increasing housing supply and improving affordability.”
The independent review recommended a suite of modern planning controls to better enable higher density housing, including removing prescriptive dwelling density limits, increasing building height limits, reducing car parking requirements in well located areas, and introducing potential density and height bonuses for social housing.
“These recommendations are practical, well tested and entirely consistent with what the housing market needs.
“The HIA report shows that without reform, alongside subdivision and gentle density changes, Tasmania will continue to fall short of its housing targets.
“If Tasmania is serious about improving affordability and meeting its housing targets, planning reforms cannot remain unfinished business,” Mr Price said.
The HIA’s Gentle Density: Unlocking Subdivision report is available here.
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