Hobart CBD Apartments: $85m Tower Approved for Macquarie Street

Hobart's planning authority has granted conditional approval for a landmark $85 million mixed-use development on Macquarie Street, just 300 metres from Parliament House, signalling a new era of urban intensification in Tasmania's CBD.

The project, lodged by Melbourne-based developer Axiom Urban, comprises 148 apartments across 12 storeys, with ground-floor retail and a 180-space basement car park. The approval, granted on 26 June, follows two years of consultation with the Hobart City Council and local stakeholders.

"This represents genuine progress for CBD living," said Helen Morrison, the council's strategic planning director. "We're seeing interstate developers recognise Hobart as a viable market, particularly as Melbourne and Sydney markets plateau."

The development arrives as Hobart's median property price hovers around $560,000—a 12 per cent year-on-year increase—and rental vacancy sits below 1 per cent. Apartments in the proposed tower are indicatively priced from $475,000 for one-bedroom units to $820,000 for three-bedroom penthouses.

The Macquarie Street site, currently occupied by a 1970s office building, sits within walking distance of key amenities: Swanston Reserve to the north, the Hobart waterfront precinct 400 metres south, and bus interchange facilities. The approval includes conditions requiring 15 per cent affordable housing components and public domain improvements including street tree planting and widened footpaths.

Axiom's project director, James Chen, acknowledged competition from established precincts. "We're competing with Battery Point and Sandy Bay, where median prices have climbed past $750,000," he told The Daily Tasmania. "What we're offering is walkability, density, and price-point accessibility for young families and downsizers."

However, local residents expressed mixed views. The South Hobart Action Group raised concerns about traffic impacts on Salamanca Place during construction, though traffic modelling submitted with the application suggests peak-hour flows will increase by only 3.2 per cent once occupied.

The approval reinforces Hobart's divergence from Launceston, where medium-density projects have faced stronger community pushback. Launceston's emerging alternative status—with median prices near $420,000—has attracted lifestyle migrants and investors, but CBD intensification remains politically sensitive.

Construction is scheduled to commence in Q4 2026, with completion expected by late 2028. The project is the largest CBD residential approval since the 2019 Master Builders report warned of undersupply in inner-city stock.

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