Thinking about buying property in Tasmania?

The Tasmanian and Hobart property markets present a unique mix of challenges and opportunities, making it essential to stay informed before making your next move. Whether you’re a homebuyer or investor, understanding how the market performed in 2025 and what’s predicted for 2026 will help you make confident decisions.

In this article, we break down the latest stats and expert insights, offering a clear picture of housing market trends across Hobart and Tasmania. Let’s begin with an overview of how the market fared last year and what the data tells us.

What did the property market in Tasmania look like in 2025?

The Tasmanian property market spent 2025 transitioning out of a correction phase, delivering a modest turnaround by the year's end. According to Cotality, dwelling values in Hobart rose by +2.4 per cent in the 12 months to October 2025. While this positive trajectory marked a shift in momentum, the capital still trailed the national average growth rate of +6.1 per cent as buyers remained price-sensitive.

Regional Tasmania proved to be the stronger performer, outpacing the capital with annual growth of +4.1 per cent as of October 2025. This divergence highlighted the ongoing appeal of regional hubs like Launceston and the North West Coast, where lifestyle and relative affordability continued to drive demand. In Hobart, performance was consistent across property types, with house values rising +2.4 per cent to a median of $740,000, and units increasing +2.6 per cent to a median of $560,000.

Supply levels tightened significantly throughout the year, putting a floor under prices. Total listing numbers across the state dropped by approximately 21 per cent year-on-year, creating a scarcity of stock that coincided with renewed buyer interest. Matthew Hassan, Head of Australian Macro-Forecasting at Westpac, noted this shift in sentiment, stating, "Purchasing intentions surged 39.5%yr, the largest increase nationwide... despite subdued price growth, confidence and intent suggest Tasmania could see firmer conditions ahead."

The rental market remained a pressure point for tenants but a bright spot for investors. Vacancy rates in Hobart compressed to between 0.4 per cent and 0.6 per cent, driving asking rents up by nearly 10 per cent over the year. This intense competition for rental stock, combined with gross rental yields of 4.4 per cent, helped reinvigorate investor activity in the second half of the year.

Tasmania property market forecast and price predictions 2026

Tasmania’s property market is expected to shift from stabilisation to steady recovery in 2026, driven by a powerful combination of falling interest rates and returning investor confidence. 

After lagging behind mainland capitals in 2024–25, the consensus among major analysts is that the bottom of the cycle has passed. SQM Research is particularly optimistic for Hobart, forecasting growth of up to 7 per cent (or even 10 per cent in a bullish scenario), arguing that "the only way is up" as rate cuts improve borrowing capacity. Westpac data supports this, noting a massive 39.5 per cent surge in purchasing intentions in Tasmania—the highest increase in the country.

A defining feature of the 2026 outlook is the resurgence of the investor. Reports from Harrison Agents indicate a massive spike in investor activity in Northern Tasmania (up 56 per cent), driven by mainland buyers seeking affordability and high yields. This is supported by Bamboo Routes, which notes that regional hubs like Burnie and Rosebery are offering some of the highest rental returns in the country (up to 9.9 per cent).

While the capital growth forecast is more modest than the double-digit booms predicted for Perth or Melbourne, the downside risk is considered minimal. Westpac highlights that total listings in Tasmania have dropped 21 per cent year-on-year, putting a firm floor under prices. The recovery is expected to be broad-based, but with a clear preference for affordable regional corridors and Launceston, where the entry price is significantly lower than Hobart, offering better leverage for investors chasing positive cash flow.

What are the best suburbs to invest in Tasmania in 2026?

We've put together a list of ten of Sydney's top investment suburbs for 2026 according to OpenAgent analysis of short-term and long-term growth patterns, listing activity, selling speed and rental yields. 

Dodges Ferry, TAS 7173

Dodges Ferry has surged in popularity, recording a median house price of $720,000 and impressive annual growth of +21.5 per cent. It offers a relaxed coastal lifestyle with easy access to beaches and boat ramps, all within commuting distance of Hobart. The suburb has delivered +71.4 per cent growth over five years, reflecting the shift towards lifestyle locations. With a rental yield of 4.1 per cent and median rent of $490, it attracts tenants seeking sea views and space. Its position near the growing Sorell service hub adds to its convenience.

Hobart, TAS 7000

Hobart’s inner-city unit market has surged, recording a median sale price of $899,500 and exceptional annual growth of +24.9 per cent. Over the past five years, prices have climbed +49.9 per cent, reflecting strong demand for apartments near the historic waterfront and CBD workplaces. The suburb offers a rental yield of 3.5 per cent with a median weekly rent of $550, appealing to both long-term professionals and the short-stay accommodation market. Its unmatched proximity to Salamanca Place and the ferry terminal ensures it remains the capital’s most vibrant lifestyle precinct.

Ravenswood, TAS 7250

Ravenswood offers one of the most affordable entry points in the Launceston market with a median house price of $385,000. It has achieved +13.2 per cent growth in the last year, supported by a high rental yield of 5.7 per cent. The suburb is popular with investors seeking positive cash flow and tenants looking for budget-friendly housing. Over five years, values have jumped +85.5 per cent, highlighting the demand for affordable assets in the north. It is located just a short drive from the Launceston CBD and local amenities.

New Town, TAS 7008

New Town offers a prestigious inner-suburban lifestyle in Hobart with a median house price of $935,000. It has recorded strong annual growth of +14.7 per cent, while five-year growth sits at +39.8 per cent. Homes here sell relatively quickly, spending a median of just 28.5 days on the market, indicating solid buyer competition. Known for its leafy streets and grand federation character homes, the suburb is a short commute to the city and popular with established families. Investors can expect a rental yield of 3.8 per cent with a median weekly rent of $595.

Scottsdale, TAS 7260

Scottsdale serves as the major service centre for the North East, commanding a median house price of $469,500. The market grew +10.5 per cent over the last year, driven by the region’s agricultural strength and growing tourism sector. It has seen values rise +87.8 per cent over five years, partly fueled by the popularity of nearby mountain biking trails. Investors benefit from a solid rental yield of 4.8 per cent and a median weekly rent of $375. The town offers a self-sufficient lifestyle with schools, hospitals, and shops.

Howrah, TAS 7018

Located on the sunny Eastern Shore of Hobart, Howrah presents a solid unit market with a median price of $607,500. The suburb has delivered +8.2 per cent growth over the last year and an impressive +50.4 per cent over five years. It is favoured for its beach access, shoreline walking trails, and sweeping views across the Derwent River to Mount Wellington. With a median rent of $490 per week and a yield of 3.7 per cent, it attracts tenants looking for a coastal lifestyle within easy reach of the Tasman Bridge.

Deloraine, TAS 7304

Deloraine is a picturesque historic town with a median house price of $577,500 and strong annual growth of +15.5 per cent. Situated centrally between Launceston and Devonport, it attracts buyers seeking a scenic tree-change with good connectivity. The market has grown +72.4 per cent over five years, supported by a vibrant local arts community and tourism trade. With a rental yield of 4.8 per cent and median rent of $455, it offers consistent returns. Its riverside parks and heritage streetscapes make it a standout lifestyle location.

Lindisfarne, TAS 7015

Lindisfarne is a riverside suburb of Hobart offering a median house price of $782,500 and annual growth of +9.4 per cent. Properties here are in high demand, spending a median of only 25 days on the market. The suburb is loved for its village-style shopping strip, marina, and parks along the Derwent River. With a five-year growth of +31.3 per cent and median rent of $580, it remains a consistent performer for investors seeking quality near the bridge.

Ulverstone, TAS 7315

Ulverstone is a thriving coastal town on the North West Coast with a median house price of $535,750. It recorded +9.3 per cent growth in the past year, appealing to families and retirees for its parks, beaches, and flat terrain. The suburb has delivered +73.9 per cent growth over five years, proving its long-term stability. Investors see a rental yield of 4.5 per cent, with a median weekly rent of $430. Its central position makes it a convenient base for workers in both Devonport and Burnie.

Rokeby, TAS 7019

Rokeby offers value on Hobart’s Eastern Shore with a median house price of $630,000. While annual growth was steady at +6.8 per cent, the suburb has achieved +79.5 per cent growth over five years as buyers look for affordability near the capital. It is undergoing significant transformation with new housing developments and improved infrastructure. The rental yield of 4.7 per cent and median rent of $550 make it attractive for investors. It sits close to the beaches of the South Arm peninsula and the services of Shoreline Plaza.

Disclaimer: Rankings use OpenAgent’s internal weighted scoring of price growth, days on market, listings and indicative yield. General information only—not financial advice; figures are estimates; past performance is not reliable. Always seek independent advice.