Sandy Bay is a suburb of the city of Hobart, Tasmania, Australia, located immediately south of the central business district, and adjoins the suburb of Battery Point, and has a long frontage to the River Derwent. The suburb has many large homes, and is known as one of the city's prestigious areas. In the more southern areas of Sandy Bay, close to the water and also high on the slopes of Mt Nelson, are some of Tasmania's most expensive real estate. It is also the site of the Hobart campus of the University of Tasmania, and the private schools, Fahan School, The Hutchins School, and Mount Carmel College, Sandy Bay. There is considerable diversity within the suburb. The area surrounding the University of Tasmania is home to considerable student accommodation.

Sandy Bay has 65 active real estate agents working in the area, they have sold a total of 224 properties in the last 12 months.