A 150-hectare property in Hadspen hit the market this week and has zoning that could take in 600 lots and a town centre.

Named Willowbank Estate, the land sits between the Bass Highway and Meander Valley Road junction.

Knight Frank's Cale Ayres said the estate was the best development opportunity in Northern Tasmania.

"[It] provides a unique combination of size, scale and various existing zoning, the likes of which have never been offered to the Northern Tasmanian market," he said.

The property is owned by Launceston-based MEDTEC Pty Ltd and comprises three main zonings - general residential (36 hectares), low density residential (45 hectares) and rural living (59 hectares).

Three hectares immediately south of the Main Street turnoff into Hadspen are zoned local business, which could pave the way for a new town centre.

There are also seven hectares of urban mixed use land, which allows for residential, commercial and community uses.

Should it go ahead as planned, the development could help push Hadspen's 2500-odd population towards the 4000 mark.

"Hadspen is a good satellite area for Launceston, and it's a nice place for people to come out and live beside the river," Meander Valley mayor Wayne Johnston said.

The council has been working on Hadspen's expansion for many years.

Willowbank Estate accounts for about 65 per cent of a 232-hectare block that was rezoned in 2019 to allow for the town's growth.

That plan had provision for 1100 new homes and the possibility of a new primary school.

However, it is understood that significant sewerage and water connection works will need to be completed before any further major developments can take place.

"We're meeting TasWater in the next fortnight to talk about this specific Hadspen area just to see what the timelines are. [Then] we can actually go back to developers and say this is where TasWater are at, this is the timeline," Cr Johnston said.

"[It needs] some major upgrades - we're talking millions of dollars of upgrades in pump systems TasWater have to do.

"It's not going to happen overnight."

Price expectations have not been disclosed for the property, which is for sale with Knight Frank's Mr Ayres, Nicholas Bond and George Burbury.

Expressions of interest close May 23.