State Govt purchases Kensington Park for new housing

Kensington Park in New Norfolk has been sold to the Tasmanian State Government with the 9.3 hectare or 23 acre site set to be redeveloped and subdivided, boosting social and affordable housing and home ownership opportunities for people in the area.

Kensington Park Racecourse was purchased for $2,180,000 through Ray White Commercial Real Estate with government agency Homes Tasmania given the task of rezoning the area through a housing land supply order which will then go through a development application process.

The announcement comes after the Gazette reported in July 2024 that the State Government's Homes Tasmania was the under-bidder in the sale of the land to David Marriner's TSF investment group. At the time, it was reprorted that TSF paid $2.5 million for the land, compared to a bid from Homes Tasmania of $1,870,000.

A minimum of 15 homes can be built per hectare onsite which potentially means up to 100 land lots could be available for sale allowing the same number of homes to be built.

At an announcement on Sunday Derwent Valley Council CEO Wes Young said "The DVC is excited to work with the State Government on this development which will provide new and more affordable housing to the people of the Valley". 

Mr Young also said "It's great news and is needed for our growing community. We've seen unprecedented levels of residential and population growth in the town over the last few years which has also been recognised by being named in the hot 100 suburbs in Australia which is a testament to its appeal."

Derwent Valley Mayor Michelle Dracoulis also praised the announcement and with Housing and Infrastructure Minister Kerry Vincent they both backed the sale and future development news and what it means to attract new investment to New Norfolk and the Derwent Valley.

"Housing is only one part of the equation and a strong community is built by ensuring people have a place to live, but it’s equally important that they have the opportunity to work, build a future and thrive," Mayor Dracoulis said.

Housing and Infrastructure Minister Kerry Vincent also added “Kensington Park is close to the essential services that people rely on, making it an ideal location for families, first-home buyers, older Tasmanians and workers looking to live close to where they work or study."

In 2020,The Tasmanian Liberal Government backed by an investment of 1.5 billion dollars committed to providing 10,000 social and affordable homes to Tasmanians by the year 2032 which is the largest investment in social and affordable housing in Tasmania’s history.