Wondering if Hobart is an attractive property market to invest in 2025? 

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 over 2024, and what analysts are forecasting for the year ahead. 

The bottom line is that Hobart has had a tough year, especially when you look back at recent highs - and a positive run of growth that goes back to pre-COVID - but there are still green shoots rising around the Tasmanian capital.

How did the Hobart property market perform in 2024?

Hobart’s property market experienced a slight decline in 2024, marking a year of relative stagnation. 

According to CoreLogic data, property prices in the Tasmanian capital fell by 0.6 per cent, bringing the median property price down to $651,043 by December. This positions Hobart as the seventh most affordable capital city in Australia, making it significantly cheaper than most mainland capitals. Houses performed slightly better than units, declining by 0.5 per cent compared to a 1.3 per cent drop for units, reflecting a subdued market overall.

While sale prices remained soft, Hobart’s rental market tightened further, creating challenges for tenants but opportunities for cashflow-focused investors. BambooRoutes reported that vacancy rates plummeted to just 0.6 per cent, one of the lowest in the country, leading to a 7 per cent increase in house rents. By the end of 2024, the median weekly rent for a house in Hobart had climbed to $600, highlighting the city’s chronic rental shortage. This has made competition fierce among renters, with available properties being snapped up quickly.

Investor activity also saw an uptick, rising 3.5 per cent over the year. According to BambooRoutes, continued demand from interstate buyers and low interest rates helped sustain interest in the Hobart market. While price growth remained flat, the combination of strong rental demand and low supply has kept Hobart firmly on the radar for investors looking for long-term potential.

Hobart property market forecast and price predictions 2025

The outlook for Hobart’s property market in 2025 remains cautious, with experts forecasting only modest growth or limited movement.

Westpac expects a 2 per cent rise in property values but warns that affordability constraints and limited migration-driven demand will continue to weigh on the market. NAB shares a similar outlook, forecasting 2.4 per cent growth, while SQM Research presents a wider range between -3 per cent and +2 per cent, emphasizing that interest rate cuts and population growth will be key determinants of market performance.

Propertyology predicts growth between 1 and 3 per cent, highlighting that Hobart has yet to fully recover from the stagnation brought on by the RBA’s 18-month rate hike cycle. However, a 7 per cent increase in property transactions in 2024 suggests that buyer confidence is improving, particularly for well-presented homes priced competitively. First-home buyers have remained active, and there are signs of interstate buyers returning to the market, particularly those seeking a lifestyle-driven relocation.

A potential game-changer for Hobart’s long-term outlook is the proposed world-class entertainment precinct, including a roofed stadium, which is seen as essential for Tasmania’s long-awaited AFL team. Propertyology notes that this, alongside Hobart’s airport expansion for international flights, could bring significant economic benefits, boosting local employment and housing demand.

While 2025 is expected to be a transitionary year, rising transaction volumes, infrastructure projects, and steady buyer demand could provide a foundation for gradual price growth, even if the market remains subdued in the short term.

What are the best suburbs to invest in Hobart in 2025?

Looking for some top investment opportunities in Hobart? Here are three hotspot suburbs in the Tasmanian capital as selected by realestate.com.au and John McGrath:

Kingston, TAS 7050

With a median house price of $743,000 and 1.4 per cent annual growth, Kingston continues to be one of Hobart’s most promising up-and-coming suburbs. The McGrath Report 2025 points to its prime location just 10 minutes from the CBD via the Southern Outlet motorway, along with its family-friendly beach and significant land availability for future development. Growing speculation that Kingston could be the site of a performance centre for Tasmania’s AFL team further adds to its investment appeal, making it a suburb to watch.

North Hobart, TAS 7000

North Hobart, with a median house price of $978,000, saw an impressive annual growth of 22.2 per cent in 2024, cementing its reputation as a vibrant and desirable location. The McGrath Report describes it as a cool, trendy suburb filled with nightlife, eateries, and historic housing stock that has been rejuvenated by high-end developments like The Rox. With its thriving community and increasing popularity, North Hobart is edging closer to a $1 million median house price, making it an attractive option for investors.

Bellerive, TAS 7018

Bellerive, located just 11 minutes from Hobart’s CBD, offers stunning views of the River Derwent and easy access to Bellerive Beach, with a median house price of $841,250. According to REA’s Hot 100 Suburbs to Watch 2025, the suburb has benefited from the redevelopment of Ninja Stadium (Bellerive Oval), which hosts AFL games, enhancing its appeal. With its mix of luxury homes and convenient ferry connections to the city, Bellerive remains a highly sought-after waterfront location for families and investors.

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.