55 Derwentwater Avenue, Sandy Bay TAS 7005

1961 brick house | 3 bed, 1 bath | 826–835m² block | 18% site coverage | bushfire overlay present This property presents a rare configuration edge in Sandy Bay: a low site coverage of 18% on an 826–835m² lot means the existing 138–150m² house leaves substantial undeveloped land, offering genuine future subdivision or extension potential. The 1961 build is structurally sound by era standards, and the balcony, workshop, and outdoor entertainment area provide immediate livability. The location near Waimea Heights Primary and Hobart College, combined with strong owner-occupier demographics (90% on street, 65% suburb-wide), signals stable demand. This property best suits a buyer seeking a foothold in a premium suburb with a clear path to add value through renovation or land use intensification. The bushfire overlay is the primary risk, constraining certain building materials and increasing compliance costs for any future works. The single bathroom is a functional limitation for families, and the 2022 purchase price of $1,350,000 means a buyer at current asking faces a thin margin if market conditions soften. That said, the 55 sales in the suburb this year indicate liquidity, and the lack of auction clearance data suggests private treaty transactions dominate-favouring patient negotiators. Hold as a long-term land bank with renovation upside, or develop the rear portion if council permits allow.