Hobart's Parliament Square project gets green light after delays

After a series of lengthy delays, Hobart's $100 million Parliament Square project is set to move forward after clearing the final hurdle.

Five years after Citta Property Group was named the preferred Parliament Square developer, the company has purchased the block behind Parliament House for $8.1 million dollars.

State Growth Minister Matthew Groom said the transfer had to occur before full construction could start.

"This represents the commencement of a wave of construction activity across Tasmania," he said.

Treasurer Peter Gutwein insisted taxpayers were getting a good deal.

"One hundred million dollars worth of economic activity and 400 jobs being created and what will be an iconic development for Tasmania - I think they should be very pleased," he said.

The first stage of the redevelopment includes a new office block for public servants on Salamanca Place, with the Government signing a 20-year lease with the Citta Group.

The 1960s 10 Murray St building will be demolished in late 2016 to make way for a new public space, shops and cafes.

With the Royal Hobart Hospital and Myer redevelopments ramping up at the same time, managing contractor Bruce Maher of Hanson Yuncken did not expect labour shortages to delay the project.

"Pretty confident we've got all that sorted. I've got say we find ourselves at the front end of the wave, which is always a good place to be," he said

Mr Groom urged interstate contractors to relocate to take on the work.

"What a great problem to have, you know, to be talking about the need for additional people to come to Tasmania and take up jobs in Tasmania," he said.

Parliament Square is expected to be finished by late 2018.