Wondering if Hobart is an attractive property market to invest in 2026?

You may also hold an investment property and want to know if this year is a good time to sell. No matter your motive, in this article, we summarise how the Hobart real estate market performed in 2025, and what analysts are forecasting for the year ahead.

The bottom line is that Hobart has turned a corner. After the price corrections of recent years, 2025 was the year the market found a firm floor and returned to modest growth—signalling a much steadier path forward for the Tasmanian capital.

How did the Hobart property market perform in 2025?

The Hobart property market saw a modest increase in 2025, with dwelling values rising by 2.4 per cent as of October, which was below the national average of 6.1 per cent. This growth was supported by interest rate cuts, which played a significant role in revitalising buyer confidence. Tim Lawless from Cotality noted, "The first rate cut in February marked a clear turning point, with home values moving through a positive inflection across most regions".

Houses in Hobart experienced an annual growth rate of 2.4 per cent, with a median value of approximately $735,000, while units saw a slightly higher growth rate of 2.6 per cent, with a median value around $559,000. The market showed signs of strengthening towards the end of the year, with houses and units both contributing to the overall growth.

Sales volumes in Hobart increased significantly, with a 7.5 per cent rise in transactions during the June quarter. This uptick was driven by a notable rebound in investor purchases, which surged by 41.5 per cent, and increased participation from mainland buyers. The rental market remained tight, with a slight decrease in the vacancy rate from 1.9 to 1.8 per cent over the second quarter, maintaining pressure on rents.

The Reserve Bank of Australia's interest rate cuts in February, May and August 2025 improved borrowing capacity and buyer sentiment, contributing to the market's recovery. Additionally, the expanded 5 per cent deposit guarantee scheme, which commenced on 1 October, was linked to stronger activity in the lower-to-middle price brackets.

According to Russell Yaxley, President of the Real Estate Institute of Tasmania, "Sales numbers continue to grow; the pool of property for sale shrinks, and prices begin to climb," while "a shrinking rental pool and increasing demand will unfortunately see continued pressure on rents.”

Hobart property market forecast and price predictions 2026

National property values are tipped to hit record highs again in 2026 as lower interest rates continue to reignite buyer demand, and Hobart is expected to join in the upswing. While the Apple Isle may trail the rapid growth predicted for Melbourne or Perth, the consensus is that the market floor has been established. 

Opinions on the pace of this recovery vary significantly. Westpac forecasts a solid rise of +4.0 per cent, while NAB predicts similar growth of +3.6 per cent as confidence improves.

SQM Research is the most optimistic, forecasting gains of between +4 and +7 per cent in its base case scenario. On the other hand, ANZ takes a more conservative view, predicting a modest lift of +2.1 per cent. KPMG adds that affordability remains a hurdle, suggesting units may outperform houses as buyers seek better value in the lower price brackets.

For investors, the defining feature of the market is a critical shortage of stock. Listing volumes have tightened significantly, which is helping to support values despite affordability pressures. The rental market is equally squeezed, with SQM Research reporting vacancy rates as low as 0.6 per cent, offering strong security for landlords.

Louis Christopher, Managing Director of SQM Research, highlights the shift in momentum, stating, “The only way is up for Hobart home prices... If [the base case] comes to fruition, a 4-7 per cent increase in dwelling values is expected for Hobart.” Ultimately, most Hobart property market predictions suggest a year of steady, sustainable growth rather than a sudden boom.

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

We've put together a list of five of Hobart'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. 

Hobart, TAS 7000

Central Hobart's unit market features a median sale price of $899,500, showcasing robust 12-month growth of +24.9 per cent and an impressive five-year growth of +49.9 per cent. The city continues to attract investors due to its vibrant cultural scene and picturesque location, nestled between the River Derwent and scenic mountains. Offering a median rent of $550, the rental yield stands at 3.5 per cent. The presence of thriving arts and culinary experiences adds further appeal, supporting strong occupancy rates and consistent rental demand.

New Town, TAS 7008

New Town is a standout house market with a median price of $935,000, reflecting an upbeat annual growth of +14.7 per cent and a solid five-year increase of +39.8 per cent. Known for its charming streetscapes and proximity to Hobart CBD, it offers a median rent of $595, yielding 3.8 per cent. The suburb draws families and professionals alike due to its excellent schools, parks, and heritage architecture, supporting a dynamic community vibe.

Howrah, TAS 7018

Howrah's unit market is defined by a median sale price of $607,500, coupled with a solid 12-month growth of +8.2 per cent and five-year growth of +50.4 per cent. Delivering a rental yield of 3.7 per cent with a median rent of $490, it remains attractive for investors looking for a seaside lifestyle without the premium price tag. Its coastal appeal, coupled with easy access to local amenities and Hobart, makes it a favourite among young families and retirees.

Bellerive, TAS 7018

With a median unit price of $633,000, Bellerive has seen a steady 12-month growth of +12.0 per cent and a moderate five-year climb of +33.0 per cent. The suburb offers a rental yield of 4.9 per cent, with a median rent of $465. Renowned for its waterfront views and historic charm, Bellerive is home to Ninja Stadium, enhancing appeal for sports enthusiasts and those seeking a vibrant community atmosphere.

Lindisfarne, TAS 7015

Lindisfarne, a strong house market contender, has a median price of $782,500, supported by annual growth of +9.4 per cent and five-year growth of +31.3 per cent. With a median rent of $580 and a rental yield of 3.9 per cent, it is popular among buyers seeking a blend of affordability and lifestyle. Its leafy avenues, waterfront parks, and proximity to the CBD draw professionals and families seeking suburban tranquillity.

It’s important to do your due diligence and research before you invest anywhere. Key things to consider and look for include: 

• Suburbs with good rental yields and demand.
• Growth potential, based on past performance and future development plans.
• Proximity to infrastructure projects, schools, and desirable amenities can all increase property value.

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.