Hobart property market data, trends, forecasts

Hobart property market news - key takeaways

• Prices rising across the board: The Hobart property market posted a +0.9 per cent monthly gain in May 2026, with both houses and units contributing to an annual growth rate of +9.3 per cent.
• Stock vanishing as fast as it arrives: Total listings fell -20.1 per cent year on year even as new listings grew +4.2 per cent, telling buyers that available stock is being absorbed almost the moment it hits the market.
• Properties selling faster than last year: Hobart's median days on market dropped to 28 days from 30 a year ago, with vendor discounts holding near -3.8 per cent, meaning sellers are conceding very little from their asking price.
• Rents surging, vacancies critically low: Annual rent growth of +8.0 per cent and a vacancy rate of just 0.6 per cent place Hobart among the tightest rental markets in the country, with only 161 properties vacant across the entire city.
• Rate relief still a long way off: The RBA cash rate sits at 4.35 per cent with cuts unlikely until well into 2027, and with Westpac forecasting further rises, the borrowing cost outlook remains a genuine constraint on buyer capacity.

Hobart property price movements

The Hobart property market continued to track in a different direction to the larger capitals in May 2026, with values rising across all property types. While Sydney and Melbourne recorded quarterly falls, Hobart added to gains made earlier in the year.

Hobart property prices - May 2026

Hobart's property values moved higher in May 2026, rising +0.9 per cent over the month. The annual growth rate of +9.3 per cent puts Hobart among the stronger-performing capitals in the country.

^{Source: Cotality}

The median home value in Hobart now sits at $752,398, up around $6,733 from the prior month. The quarterly gain of +2.4 per cent suggests momentum has been building steadily through the first half of 2026, not just spiking in a single month.

House prices in Hobart

Hobart house prices rose +0.8 per cent in May 2026, with the annual rate of +9.7 per cent among the strongest of any capital city. The Hobart housing market is recording annual gains that would have seemed ambitious even at the start of the year.

^{Source: Cotality}

The median house value reached $807,533, a gain of approximately $6,403 over the month. At nearly double the quarterly growth rate seen across combined capitals, Hobart's house segment is clearly running on a different trajectory to the major east-coast markets.

Unit prices in Hobart

Hobart unit prices put in the strongest monthly performance of any property type in May 2026, rising +1.3 per cent over the month. On an annual basis, Hobart unit prices are up +7.2 per cent, a solid result even if slightly behind the pace set by houses.

^{Source: Cotality}

The median unit value now stands at $580,265, up around $7,451 from the prior month. Units in Hobart remain considerably more accessible than houses, sitting roughly $227,000 below the house median, which may be drawing buyers who have been priced out of the detached market.

Hobart property market forecasts 2026

Australia's Big Four banks publish annual dwelling price forecasts as part of their economic research teams' broader outlooks. Views on the Hobart house price forecast for 2026 vary across the four banks, with a spread of just over two percentage points from the most conservative to the most optimistic.

• CBA predicts Hobart property prices to rise +5.0 per cent over 2026.
• Westpac predicts Hobart property prices to rise +3.0 per cent over 2026.
• NAB's published forecast is at the Tasmania state level; it predicts dwelling prices to rise +3.4 per cent over the next 12 months across Tasmania.
• ANZ predicts Hobart property prices to rise +3.7 per cent over 2026.

CBA sits as the most optimistic of the group at +5.0 per cent, while Westpac's +3.0 per cent is the most cautious view. The tight clustering of NAB, ANZ and Westpac between +3.0 and +3.7 per cent suggests a broad consensus around moderate growth, making CBA's call the clear outlier. For buyers tracking Hobart property market predictions, the range of forecasts points to a market expected to keep moving forward, but at a measured rather than rapid pace.

RBA cash rate forecast 2026

The RBA held the cash rate at 4.35 per cent in its most recent decision, following three consecutive rises that lifted the rate from 4.10 per cent. Persistent inflation has kept the board on hold, with the RBA's own forward guidance indicating that cuts are unlikely until well into 2027. The Big Four banks diverge sharply on what comes next.

• ANZ predicts a hold at the RBA's next meeting, with two further cuts in September and December 2027, bringing the cash rate to 3.85 per cent.
• CBA predicts a hold at the RBA's next meeting, with two further cuts in May and September 2027, bringing the cash rate to 3.85 per cent.
• NAB predicts a hold at the RBA's next meeting, with three further cuts in June, September and December 2027, bringing the cash rate to 3.60 per cent.
• Westpac predicts a 25 basis point rise at the RBA's August meeting, with another 25 basis point rise in September, bringing the cash rate to 4.85 per cent.

What this means for the Hobart market

At 4.35 per cent, the cash rate is feeding through to variable mortgage rates well above 5.5 per cent for most borrowers. For Hobart buyers, where the median dwelling value sits at $752,398, that rate environment meaningfully reduces borrowing capacity compared with the low-rate years, and it remains the single largest brake on purchasing activity in the city.

The sharpest fault line in the forecasts is between Westpac, which sees two further rises ahead, and NAB, which expects the cash rate to fall all the way to 3.60 per cent by end-2027. If Westpac's path proves correct, affordability for Hobart's entry-level and first-home buyer segments would tighten further. If NAB or CBA's easing scenario plays out, the modest price growth consensus of the Big Four could prove conservative.

Several of the Big Four forecasts were finalised before the RBA's most recent decision, so the full effect of the current cash rate setting may not yet be reflected in their modelling. Bank views on both the rate path and dwelling price growth are likely to be revised in coming months as inflation data and RBA communications clarify the timing of any policy shift.

Hobart house prices graphs and charts

Hobart's house price growth over the last 5 years has continued into 2026, with Cotality's latest figures showing dwelling values rose +0.9 per cent over the month, +2.4 per cent over the quarter, and +9.3 per cent over the past year, bringing the current dwelling median to $752,398. That annual gain puts Hobart well ahead of the national pace and marks it as one of the stronger-performing capitals heading into the middle of the year.

While Sydney and Melbourne have been dragged back by rising supply and softer buyer demand, Hobart's growth has been underpinned by the opposite conditions: total listings have fallen sharply, down -20.1 per cent year on year, and the rental market remains under acute pressure with a vacancy rate of just 0.6 per cent. With the cash rate holding at 4.35 per cent and meaningful rate relief still some way off, the tight supply picture has been doing most of the heavy lifting in keeping Hobart values moving forward.

Hobart property 30 year property price graph

Hobart property prices growth over the last 10 years has been strong, fuelled by interstate migration, tight housing supply and rising demand for lifestyle locations—factors that powered the big gains through 2015–2021 and set the scene for the recent cycle. That decade of substantial gains means the current bounce reads as a recovery toward long‑term trends rather than a new, outsized breakout, as shown by the 30‑year indexed chart and local market history.

Over the past 30 years, Hobart’s market has moved in bursts—big gains when credit was cheap and pauses when rates rose, or supply improved—so long‑term holders have generally been rewarded despite short-term swings. Today, homeowners are cautiously optimistic as values recover and rental tightness remains, while buyers are more price‑sensitive because borrowing rules and higher mortgage costs limit budgets; that mix points to steadier, moderate growth ahead rather than a return to the extreme gains of 2021.

Hobart selling statistics

Hobart's selling conditions in May 2026 tell a clear story: demand is running ahead of supply, properties are moving quickly, and sellers are holding firm on price. The combination of rising sales volumes, shrinking total stock and tight vendor discounts points to a market where buyers still need to act with conviction.

Hobart sales volume and days on market

Sales volumes in Hobart rose +6.8 per cent year on year, well ahead of both the combined capitals figure of +1.8 per cent and the national figure of +4.1 per cent. Properties sold in 28 days on average, compared with 30 days a year ago, a modest but meaningful improvement in selling speed.

^{Source: Cotality}

Hobart's days on market of 28 is essentially in line with the combined capitals average of 27 and matches the national figure exactly. For buyers, that means similar competitive urgency to the major capitals, despite Hobart's smaller market size.

Hobart new and total listings

New listings grew +4.2 per cent year on year, suggesting more sellers are testing the market than 12 months ago. Yet total listings collapsed -20.1 per cent over the same period, meaning new stock is being absorbed far faster than it is accumulating.

^{Source: Cotality}

When new listings rise and total listings fall sharply, it tells you buyers are clearing stock almost as soon as it arrives. Choice remains genuinely constrained for buyers, and that ongoing scarcity is a key reason prices in Hobart have continued to rise even as the larger capitals soften.

Hobart vendor discount and auction clearance rates

Vendor discount measures the percentage gap between a property's initial asking price and its final sale price. A narrower discount means sellers are conceding less ground to achieve a deal. We do not include weekly auction clearance rates for Hobart because auction volumes are too low to be statistically meaningful.

^{Source: Cotality}

Hobart's median vendor discount sits at -3.8 per cent, a slight widening from -3.7 per cent a year ago. The change is marginal and does not signal any meaningful shift in seller leverage. Vendors are still achieving close to their asking price, consistent with a market where buyer demand remains steady and stock is thin.

Hobart property investing

Hobart's rental market is delivering strong returns for investors while keeping pressure on renters. Tight supply and rising demand are pushing rents higher across both houses and units, making Hobart one of the more compelling stories in the national market right now.

Hobart rental market

The table below compares Hobart's rental conditions with other capital cities and national benchmarks, covering annual rent growth for houses and units, and gross rental yields across each market.

^{Source: Cotality}

Hobart recorded annual rent growth of +8.0 per cent, the second-fastest pace of any capital behind Darwin and well above the national figure of +5.9 per cent. House rents led the charge at +8.5 per cent annually, with unit rents growing at a more modest +5.9 per cent. Hobart's gross yield of 4.3 per cent is the third-highest among capitals, sitting above the combined regionals benchmark and well ahead of the larger east-coast cities, reflecting a market where rents have risen strongly relative to property values.

Hobart vacancy rates

Vacancy rates measure the share of rental properties sitting empty at any given time, making them one of the clearest signals of rental market pressure. SQM Research data shows Hobart's vacancy rate held at 0.6 per cent in May 2026, unchanged from a year earlier even as the raw number of vacant properties edged lower.

^{Source: SQM Research}

Hobart's 0.6 per cent vacancy rate sits half the national figure of 1.2 per cent, putting it among the tightest rental markets in the country alongside Adelaide and Perth. Only 161 rental properties were vacant in May 2026, down from 177 a year earlier, meaning there is genuinely less choice available to renters now than there was twelve months ago. That combination of near-zero vacancy and strong rent growth tells a consistent story: demand is outpacing supply, and there is little near-term relief in sight.

Louis Christopher, Managing Director at SQM Research said in the latest SQM rental market report:

"The national vacancy rate held steady at 1.2% in May. Where vacancies did rise across a number of cities, that largely reflects normal seasonal patterns — May and June are typically among the higher-vacancy months of the year, outside the December peak, as leasing slows over the cooler months. On a year-on-year basis the market is unchanged, sitting at the same 1.2% as it did in May last year."

The seasonal softening Christopher describes has barely registered in Hobart, where vacancies remain near historic lows and the rate held firm at 0.6 per cent year on year. For investors, that insulation from seasonal slack means rental income is less likely to be interrupted by vacant periods between tenancies. For renters, it means competition for available properties remains intense regardless of the time of year.

Top growth areas in Hobart

The table below covers all six Statistical Area Level 3 (SA3) regions available for Greater Hobart, ranked by annual percentage change in dwelling values to May 2026. An SA3 is an Australian Bureau of Statistics geographic classification that typically groups several adjacent suburbs into a single statistical unit, giving a more reliable picture of price trends than individual suburb data.

^{Source: Cotality}

Highlights for Hobart’s top growth areas

• Hobart - North West: Ranked #1 across Greater Hobart with annual growth of +14.9 per cent and a median value of $659,064, Hobart - North West is the city's most affordable major corridor and has been drawing buyers who want proximity to the CBD without the inner-suburb price tag. Sustained demand from first-home buyers and investors seeking relatively accessible entry points has kept upward pressure on values here.
• Sorell - Dodges Ferry: Ranked #2 with +11.6 per cent annual growth and a median of $702,576, this coastal corridor to Hobart's south-east continues to attract buyers looking for a lifestyle change within commuting distance of the city. Growing interest in the broader Tasman Peninsula region has supported demand across this SA3.
• Hobart - South and West: Ranked #3 with +10.8 per cent annual growth and a median of $844,599, Hobart - South and West carries the highest median of the top three, reflecting its established residential character and proximity to key services and employment. Price growth here suggests buyers are still willing to pay a premium for well-located stock in the city's southern suburbs.
• Brighton and Hobart - North East: Ranks #4 and #5, Brighton (+10.1 per cent, $641,358) and Hobart - North East (+8.4 per cent, $804,161), represent opposite ends of the value spectrum but both recorded growth comfortably above Hobart's city-wide average. Brighton's appeal rests largely on its relative affordability as the cheapest SA3 in this table, while Hobart - North East benefits from its established suburban amenity at a mid-range price point.
• Hobart Inner: Ranked #6 with +4.4 per cent annual growth and a median of $888,488, Hobart Inner is the city's most expensive SA3 and its slowest growing over the past year. The gap between this result and the rest of the table suggests that at the top end of the market, higher values are placing a natural ceiling on the pace of further gains.