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Best suburbs to invest in Hobart 2024

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Wondering if Hobart is an attractive property market to invest in 2024? 

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 ‘23, 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.

What did the Hobart property market in 2023 look like?

Hobart property market
Discover what real estate experts are saying about Hobart's colourful property market.

Overall the Hobart property market experienced a flat 2023, despite a promising start. 


The Real Estate Institute of Tasmania (REIT) details four primary factors behind the slowdown in real estate activity throughout 2023, namely:

  • Higher interest rates
  • The rising cost of living
  • Decreasing population growth
  • Lower consumer confidence (based on the first two points)

This is evident in their data, including a drop in sales transactions by -10.7 per cent versus 2022, as well as growth in listing numbers and longer days on market (DOM). Other key metrics that underline the status quo are a drop in investment purchases (-34.3 per cent) and top-end sales over $1 million (-15.5 per cent). Savings.com.au points out that the top end of the market has suffered a significant drop, with suburbs like North Hobart and Taroona down -13.9 per cent and -13.8 per cent respectively.  

CoreLogic data shows that the market essentially stagnated and encountered a significant slowdown by mid-year, with dwelling values recording negative growth (-0.8 per cent) over 2023. This is down -11.2 percent from the most recent high recorded in August ‘22. 

Houses are at a median value of $700,810, which is -1.1 percent down over ‘23, while units are at a median of $533,056 having grown a marginal 0.1 per cent. There was a glimmer of growth in the final quarter, with the market up +0.4 per cent for a median dwelling value of $656,947. 

Let’s now look at what the experts think about the prospects for this market in ‘24.

How are Hobart house prices expected to change in 2024? 

Christopher’s Housing Boom and Bust Report forecasts a further fall in prices over 2024 (-7% per cent to -3 per cent) - advising investors to, ‘stay out of the way for the duration of the year’. Key indicators it uses to make this decision include the recent rise in vacancy rates, a drop in asking rents (- 9.4 per cent) year-on-year and a rise in the unemployment rate (+4.4 per cent), the highest across all states. 

NAB forecasts that Hobart property prices will stabilise in the coming year but remain flat, while ANZ anticipates a modest growth of around +3 per cent in 2024. KPMG is significantly more optimistic, forecasting a +11 per cent increase in Hobart house prices over 2024. They believe this will be followed by an even stronger surge of +14 per cent in 2025. 

What about the unit market?

What's the Hobart apartment market like?

The current median for a unit in Hobart is $533,056, which is just +0.1 per cent up over the year. 

REIT data shows that rental availability is on the rise as some property owners opt to lease their properties rather than sell them. This increase in rental supply is putting downward pressure on rents and leading to higher vacancy rates. While this trend may alleviate some of the demand for rental accommodation, they point out that there is a scarcity of properties in the high-demand lower end of the rental market.

KPMG is bullish on the Hobart real estate market as a whole, forecasting unit prices will climb by +10 per cent in 2024 and 2025. ANZ is more conservative, believing units will rise +3% in 2024, while NAB chief economist Alan Oster expects an initial drop in unit values of -3.5 per cent, followed by stabilisation later in the year.

Let’s now look at some potential growth suburbs to shortlist for this year and beyond.

What are the best suburbs to invest in Hobart in 2024?

Australian Property Investor Magazine identified three Hobart suburbs to watch, based on a variety of criteria:

  • Risdon Vale for its blend of ‘affordability and potential’, where the median house is currently $460,000. Houses there rent out for $450 per week with a healthy annual rental yield of 5.2 per cent.
  • Lindisfarne, where the median house value is $727,000 - where values have dropped -11.3 per cent over the past year. This could present a perfect buying opportunity if you specifically want to buy there. You can expect rent of $580 per week with an annual rental yield of 4.2 per cent in this suburb. 
  • Lauderdale, a suburb dominated by established houses, has bucked the negative trend and grew +2.1 per cent over the past year for a median value of $850,000. You can expect weekly rent of $670 here, with an attractive annual rental yield of 4.1 per cent.

Domain’s End of Year ‘23 report highlights some useful data for outperforming Hobart suburbs, including: 

  • Rosny, the suburb with the shortest days on market (22 days) over ‘23. Houses have advanced +12.1 per cent over the past year, for a median of $989,050. Asking rents are $670 per week with an annual rental yield of 3.8 per cent.
  • Mount Nelson, the suburb with the second shortest day on market (28) over ‘23. Houses have a median value of $930,000 and are down -11.4 per cent over the past year. Asking rents are $567 per week here, with an annual rental yield of 3.7 per cent. 
  • New Norfolk, just out of town, is the cheapest suburb in Hobart, with a median house price of $480,000. They have grown +4.3 per cent over the past year, with asking rents of $450 per week and a healthy annual rental yield of 5.1 per cent. 

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.