Inner city living spaces are being snapped up quickly, with huge plans for a former retail space in the works.
Buyers are purchasing apartments off the plans before they're built which means Launceston builders are using spaces people have never thought of using before to bring people into the city.
Tas City Building owner Steve Simeoni said a residential living plan for the former Allgoods Tent City site was planned.
"At the moment feasibility studies are being undertaken. It's about 1600 square metres and proposed four levels of 22 apartments and car parking," he said.
Mr Simeoni said there were a lot of challenges with making the building compliant, with the fire and building codes, along with strata titles.
"There is land out there, and it's getting purchased at the moment. We will run out, it's only a matter of time," he said. "Then we just have to think outside the square and whatever is left just come up with different ideas and build on."
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About a thousand people live in the city, with Launceston Chamber of Commerce executive office Neil Grose saying an increase of 500 more would be ideal.
Mr Grose said Launceston had seen transformation of more people living in the city, and looking into converting buildings as part of the city deal.
"There is a lot of vacant space in Launceston which is under utilised. As part of the city deal, there is a strong project about converting spaces such as these into residential," he said.
"There has already been a lot of work done. Last year there were nearly 40 projects done and completed in Launceston to complete apartments, all of which have sold over 12 different sites. There is already projects being sold off the plans."
Mr Grose said most of the development was coming from interstate, which demonstrated the long-term confidence people have in Launceston.
State Grown Minister Michael Ferguson said infill development in Launceston's CBD was a key component of the Launceston City Deal.
"What we're seeing is a great diversity of options. We're seeing residential opportunities, more housing options. Stimulus in the building economy is driving a positive economy," he said.
The state government contributed $150,000 to the early consultation studies Mr Ferguson said, together with some relaxation of the planning rules to make it more possible for single-occupant residents to take up these upper level floors.
City of Launceston mayor Albert van Zetten said the inner city developments had been successful to date, with more expected to come.
"We as a council are willing to work together to make sure we have active development," he said.
"There has to be requirements for safety. But we're working to make sure they're done in the right way and as quickly as they can be."
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