HIA Executive Director Tasmania, Benjamin Price, said the decision represents an important opportunity to add much needed housing supply in a well located area close to services, jobs and transport.

“This is a positive and practical step toward increasing housing supply in Tasmania,” Mr Price said.

"Up to 1,000 new homes is a strong opportunity to ease Greater Hobart's housing challenges.

“Dowsing Point is close to established suburbs, services and major transport corridors, which makes it a strong location for new housing that responds to current and future demand.”

Mr Price said Tasmania’s housing challenges are being driven by a shortage of new supply, particularly in and around Hobart, and that unlocking land in the right locations is essential to easing pressure on prices and rents.

“Tasmania’s housing challenge is fundamentally a supply issue.

“When housing supply falls behind demand, affordability suffers. The most effective way to address that is to ensure there is a steady pipeline of land and homes coming to market.”

Mr Price said the release of surplus government land at Dowsing Point highlights the important role governments can play in supporting housing delivery by making suitable land available.

“Using surplus public land for housing is one of the most direct ways governments can help boost supply.

“What matters now is ensuring this land can move efficiently through planning, infrastructure rollout and housing delivery.”

Mr Price said the Dowsing Point site is well placed to benefit from Commonwealth infrastructure funding announced in last week’s Federal Budget, helping to ensure housing is delivered quickly and at scale.

“Well located land like Dowsing Point is exactly the kind of site that should be prioritised under the infrastructure funding announced in the Federal Budget,” he said.

“Targeted investment in enabling infrastructure can make the difference between land sitting idle for years and homes being built.

“If governments want to see housing delivered sooner, backing land releases like this with the right infrastructure funding is one of the most effective tools available.”

Mr Price said aligning land release, planning and infrastructure investment will be critical to turning today’s announcement into homes on the ground.

“This announcement is a welcome step, but delivery of homes is what ultimately matters.

“A coordinated approach between governments and industry will help ensure sites like Dowsing Point contribute meaningfully to easing Tasmania’s housing pressures over the long term,” Mr Price said.

HIA looks forward to working constructively with both the Federal and Tasmanian Governments to support the delivery of new housing at Dowsing Point and across the state.

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