A plan to subdivide a vacant block at Ravenswood into 24 lots has been scrapped with a new plan submitted.
Bass Corporation had approval for a 24 lot subdivision, but has now submitted a development application for 36 lots, including a roadway.
The subdivision would occur at 7 Seymour Street.
Submitted to the City of Launceston council, the development application said the change was about creating affordable housing.
"In line with the more affordable housing push in recent times, our client now wishes to reduce the size of lots in the area so that a greater lot yield can be obtained, which will reduce the price of lots and make them more affordable," it said.
Some of the land lots are less than 500 square metres, with the sizes between 345 sqm and 834sqm.
"The lots are all of regular shape and provide adequate provisions for a house to be built on each lot to provide the parking and private space requirements," the application said.
"Instead of providing separate strata lots, we are choosing to provide separate feasible titles to enable a greater density to be provided."
Launceston Chamber of Commerce executive officer Neil Grose said a proposed new private housing development in the Northern suburbs was a very good sign for Launceston.
"[It] indicates continued investor confidence in the city as Launceston increases its economic profile," he said.
"New housing lots are important for Launceston to grow without unsustainably high property prices keeping people from owning their own homes."
Mr Grose said Hobart had seen dramatically rising house prices as supply has failed to match demand, something which is to be avoided as Launceston seeks to attract more new residents to help address the issues of an ageing population and a shortage of skilled workers.
The application closes for comment on January 30.