Neighbors at war as developers try to build six new suburbs on one of Australia’s most picturesque stretches of coastline amid a dire national housing shortage
- 2,500 homes proposed for eastern Tasmania
- Government and neighbors disagree
A major development planned for one of Tasmania’s most picturesque stretches of coastline is dividing neighbors and forcing the government to intervene.
The DPZ Skylands development proposes to build 2,500 homes and services for eastern Tasmania, situated on a 240-hectare site on the Droughty Peninsula, 15km south-east of the Hobart CBD.
The plan includes six suburbs, commercial space, as well as 100 hectares of public park space and habitat reserve.
But developers hit a snag this week when the local council rejected a proposal to lift the urban growth boundary (UGB), which separates urban areas from surrounding natural and agricultural land.
The proposed Skylands development sits on a 240-hectare plot of land on the Droughty Peninsula, a 25-minute drive from Hobart CBD.

Skylands developers hit a snag when the local council this week rejected a proposal to lift the urban growth cap (file image pictured)
The UGB puts a limit on how far the city can expand, and they are often approved by voters and set for a specified period of time.
The UGB is to be raised from 70 meters up the hillside to 110 meters, but the Clarence City Council rejected the proposal at a council meeting on Monday.
Local group Friends of Tranmere and Droughty Point Peninsula argued in a presentation that housing should not be built so far up the hill because it is important to keep the skyline as a reserve and protect the peninsula’s pristine waterways.
A total of 800 people responded to the proposal with 64 percent against and 23 percent in favor.

Tasmania’s Planning Minister Michael Ferguson (pictured right) has suggested that the state government will “step in” to overturn the council’s block on Skylands development.
Meanwhile, the developers have said they won’t be looking for a ‘scaled down’ version of the plans.
The land is owned by the Carr and Lilly families, who partnered with urban design firm DPZ to create the design for the development.
Greg Carr said the decision was “tragic” for the community.
“There will no longer be opportunities for vibrant neighborhood centers, or safe, walkable streets, or pocket parks where children and adults come together,” he told the Mercury.
Tasmania’s Planning Minister Michael Ferguson said he was puzzled by the council’s decision and revealed on Friday that the state government would “step in”.
This means that the state government would rescind the council’s call on the development of Skylands and instead assess it through the Tasmanian Planning Commission.

The Skylands development would feature 2,700 homes, with 700 homes under construction above the watershed and a 57-hectare park along the ridge.
“I’m not prepared to sit idly by while our community loses a really exciting real estate development,” he told reporters.
Friends from Tranmere and Droughty Point Peninsula said it was “unfortunate that the Minister is not interested in representing what the local community and Council want to work towards”.
Clarence City Councilor Bree Hunter also responded to the Planning Minister’s decision.
“I don’t think it’s good leadership and I think it’s disappointing to see that kind of attitude from the minister,” he said on Friday.
The Skylands development would feature 2,700 homes, with 700 homes under construction above the watershed and a 57-hectare park along the ridge.
Skylands said Hobart was facing a housing affordability crisis and its master plan “ensures that beautiful architecture, public services and natural beauty are given equal consideration.”
“Without a change to the Urban Growth cap, there will be no necessary master plan and approval of services will not materialize and future housing needs will not be met in a timely manner,” their website reads.
The Clarence City Council is seeking public comment on the development by March 28.