Macquarie Street Investments says it won’t delay 56-unit apartments, unlike other developers

The latest developer to get the green light for new apartments in Hobart has promised to get on with the job, unlike others who have dragged their heels. Here’s when construction will start.

Artist's impression of 20 Barrack Street in Hobart.

The proponent behind plans for brand new apartments in Hobart says no time will be wasted getting the project off the ground – something the council has seen other developers drag their heels on.

On Wednesday the Hobart City Council unanimously approved plans for a 56-unit apartment complex at 20 Barrack St.

The site and existing building, previously the Motors Showroom, has been vacant for a several years.

“The location is fantastic, people want services at their doorstep and a low maintenance property,” director of Macquarie Street Investments, the proponent, Paul Huggins said.

Hobart Lord Mayor Anna Reynolds said there was a need for medium density housing in Hobart.

“Compared to other capital cities we don’t have as much choice for people and the type of housing they want,” she said.

Anna Reynolds in front of 20 Barrack Street.

“Many people aren’t interested in a three-bedroom house on the edge of the city, they want an apartment in the city, so having more of these options is really essential.”

Ms Reynolds said the council had approved such developments in the past, only to see little to no activity at sites.

In 2020 a permit was issued for a 55-unit apartment at the old K & D timber yard at Melville Street, but despite receiving the green light, two more applications were lodged for the site, the most recent without any housing.

Plans for the build of 55 apartments at 90 Melville St were approved in 2020, but never built. Image: supplied.

Back in 2019 the council approved an apartment block with 39 units, but in 2022 came plans for a KFC franchise at the same site, which was rejected by council but is being appealed.

Artists impression from 2019 of a development proposed on Harrington St, Hobart. This was never built. Credit: 6ty Architects

In March last year a permit was granted for 49 apartments and 145 hotel rooms across two towers at 234-250 Elizabeth Street, but six months later the site was put on the market, and it is currently still for sale.

The tribunal approved this amended design for Elizabeth Street in March last year but it was never built. Pic: Scanlan Architects.

“It is sometimes a bit of delay in getting projects out of the ground and that’s something we all need to work on including the state government and the building industry as well,” Ms Reynolds said.

“We’re really keen to see them come out of the ground and that is a challenge in Tasmania because we don’t have those big experienced building companies they have on the mainland, that are really used to developing apartment complexes.”

Mr Huggins said the Barrack Street project would not fall into the same category.

“As far as confidence goes, we have never commenced something and not finished, we’ve completed every project,” he said.

“We’ve done a lot of construction, it will be built.”

Artist's impression of 20 Barrack Street in Hobart.

He said many were looking to buy, but there was not enough good quality stock.

“The problem you’ve got in this market is the solvency of the builders throughout the world, not just Hobart or Australia, a shortage of making these things viable.,” Mr Huggins said.

“There’s not enough incentive and there’s too much risk, the outcome is a shortage of supply.”

Mr Huggins said the company hoped to begin demolition at the Barrack Street site by September or October.

“The reality comes back to the timetable of the builders we’re tendering to,” he said.

“We anticipate the commencement date, to be realistic, end of January early February, 2025.”

He said there’d already been plenty of interest in the development.

“The marketing campaign will commence in June, we believe the campaign will be sold out by September at the latest,” he said.

“We’ve had a lot of demand for the retail space, we haven’t committed yet.”

Originally published as Macquarie Street Investments says it won’t delay 56-unit apartments, unlike other developers