Off the plan apartments in inner city Hobart largely snapped up by Tasmanian owner-occupiers

Despite the hubbub about apartments dominating Hobart’s once vertically-challenged skyline, Tasmanian owner-occupiers are dominating the sales of the complexes popping up all around the capital. See what’s in the pipeline >>

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TASMANIAN owner-occupiers are dominating the sales of off-the-plan apartments in central Hobart.

The city is experiencing an influx of new medium-density apartment complexes, with figures provided by Hobart City Council in January showing 38 multi-unit applications were approved last year, potentially adding 330 new dwellings to inner Hobart.

Approved by the council in December 2019, the conversion of the former Blue Gum service station in North Hobart is under way and all 27 apartments have sold and all to Tasmanian buyers.

St Andrews Estate Agents property consultant Steve Yannarakis said the units had been snapped up quickly and mostly to owner-occupiers.

“They’ve voted with their hands and feet that they want to be in a great part of town where they get views, proximity to Hill Street, State Cinema, Friends’ School and the North Hobart strip,” he said.

Demolition of the old servo has been completed, with construction under way.

S.Group director Sam Haberle at the site of the now demolished old Blue Gum servo which will soon be home to 28 new apartments. Picture: Eddie Safarik

The lead architect and director of local firm S. Group, Sam Haberle, said inner-city densification would help solve Hobart’s traffic and housing issues.

“This development was about putting as many apartments in as we could — not from a commercial point of view, but more to do with that cultural-social responsibility,” he said.

“Typically, with a lot of developments you end up with big, expensive apartments, but we decided to put a lot more smaller ones which means at the end of the day we’re going to get more people living there and take the load off city infrastructure long term.

“A lot of people either now live alone or as a couple without kids and a one-bedroom apartment that’s designed well with a good outdoor space will often suffice.”

S. Group was also behind the design of another inner-city complex, which has been released to the market.

The Ingomar Residences in Patrick Street involves the conversion of the 1897 mansion Ingomar plus another 18 new apartments.

Car park on Patrick St which will become The Elliott apartments.

“It took 2-3 years to get it through planning because it was incredibly complex being the old heritage homestead, which will be converted into eight boutique residences,” Mr Haberle said.

“Then we’re building 18 out the back in a four-storey apartment block.

“It’s quite unique to the Hobart market — for a long time we haven’t seen a boutique apartment development reusing heritage at this scale.”

Another development combining heritage with a modern spin is The Rox on Elizabeth Street. Due for completion in April, all 16 apartments have already sold, plus the ground-floor commercial suite has been leased.

Mr Yannarakis said most buyers were again owner-occupiers, many Tasmanian, with “enormous interest” in the complex.

“It’s no cookie-cutter building that one, it’s a modern classic,” he said.

“You want to go with developers who are going to deliver on what they say and not cut corners, so it’s nice to see Mary (Brownell) has done exactly that.”

Property developer Mary Brownell at The Rox development at Hobart. Picture: Chris Kidd

Mr Yannarakis said the strong market was being driven primarily by low interest rates and “very, very low” stock in Hobart.

Also adding to stock levels will be The Elliott Apartments, comprising 68 luxury apartments adjacent to the RACT building in Patrick St.

Approved by the council last February, construction will begin in March, with an expected completion date of November 2022.

EIS Property consultant Ben Gray said 70 per cent of apartments had already sold in that complex, again mostly to Tasmanians.

“Buyers have been particularly sold on the location and it’s predominantly owner-occupiers — people who are looking to downsize or who don’t want as much upkeep with a yard,” he said. “There’s been a few people moving in from outlying areas to be closer to services.

“Just in the last few weeks interest has picked up from interstate and several people internationally. They’re looking to buy with the intention of renting it (out) for a few years before moving back here or moving here for the first time.”

Mr Gray said modern inner-city apartments were becoming a more desirable way of living in Hobart.

“We need more medium-density infill like these developments to try and appease some of the high demand,” he said.

The Commons, 126 Bathurst Street, Hobart.

Meanwhile, Melbourne-based property developer Small Giants Developments general manager Boaz Kabillo said The Commons apartment complex at 126 Bathurst Street was completed and residents moved in last year as scheduled, but there had not been an official ceremonial opening for the building.

The six-storey development was spruiked as featuring a ground-floor cafe, commercial space, rooftop garden, publicly accessible garden, ground-floor communal area, 32 bike spaces and a carshare scheme that limited the number of car spaces to just five.

The site of the former Rebels bikie clubhouse on Burnett Street in North Hobart is also well on its way to becoming a luxury residential complex, with units priced from $1.1m.

One of the four apartments at Aberdeen on Burnett sold for $1.65m just three days after hitting the market in January and is understood to be a record advertised sale price for an apartment north of the Hobart CBD.
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