Hobart property market data, trends, forecasts

Hobart property market news - key takeaways

• Price movement: Hobart property market values rose by +7 per cent over the past 12 months and remain about -5.1 per cent below their March 2022 peak.
• Supply and demand: Advertised listings are around -31 per cent year-on-year, keeping supply tight and supporting recent price gains, while rolling quarterly sales activity was slightly higher, showing demand is still present.
• Selling speed: Median days on market have shortened as low listings and stronger quarterly sales mean homes are moving faster, giving sellers an advantage in many segments.
• Rental conditions: Vacancy remains very tight and rents are rising, with house rents up +6.8 per cent and unit rents up +7.6 per cent over the year, keeping pressure on renters and supporting investor interest.
• Interest-rate outlook: A 25 basis-point cash rate rise in February 2026 has reintroduced affordability pressure, and further rate moves or tighter lending rules would likely cool activity and borrowing capacity in the near term.

Hobart property price movements

The Hobart property market continued to record modest gains at the start of 2026, supported by very low advertised stock and strong competition at lower price points. This tight supply backdrop has helped values rise despite growing affordability pressures and a recent RBA rate rise. 

Hobart property prices - January 2026

In January 2026, Hobart properties recorded a monthly lift of +0.5 per cent, quarterly growth of +2.6 per cent and annual growth of +7.0 per cent, with the median property value at $722,339.

^{Source: Cotality}

Compared with December, monthly growth slowed from +0.9 per cent to +0.5 per cent while annual growth edged higher, reflecting that recent strength has been sustained, but the pace of short‑term gains eased. The tighter listing conditions that have underpinned the upswing remain a key theme for Hobart.

House prices in Hobart

Hobart house values rose by +0.4 per cent over the month, were up +2.5 per cent over the quarter and climbed +7.2 per cent over the year, with a median house value of $766,602.

^{Source: Cotality}

Although houses have delivered solid annual gains, monthly momentum slowed from +1.1 per cent in December to +0.4 per cent in January, suggesting the Hobart housing market may be moving from a catch‑up phase into a steadier period. Continued low stock is supporting prices, but rising borrowing costs are a clear headwind to watch for Hobart house prices.

Unit prices in Hobart

Hobart unit values rose by +1.0 per cent over the month, were up +3.4 per cent over the quarter and increased +6.3 per cent over the year, with a median unit value of $576,832.

^{Source: Cotality}

Units showed a stronger monthly rebound after a small fall in December, indicating renewed buyer interest in more affordable product and helping lift Hobart unit prices. Rental strength in Hobart has also been notable and is likely supporting investor demand for apartments alongside tight for‑sale stock.

Hobart property market forecasts 2026

Australia's major banks regularly release house price forecasts to guide mortgage-lending decisions, manage risk, and demonstrate their market expertise. Here's what they predict for 2026.

^{Source: Westpac Housing Pulse, NAB Residential Property Survey, CBA Economic Update, ANZ Housing Outlook.} 

Hobart’s forecasts sit somewhere between the stronger mid‑sized capital rebounds and the slower large‑city recoveries, suggesting moderate gains rather than a sharp surge; these Hobart house price forecast signals that the city is expected to perform solidly but not lead the nation. 

Hobart home price forecasts 2026

ANZ’s most recent view points to Hobart rising by +3.8 per cent, NAB expects around +3.6 per cent, Westpac’s forecast is about +4.0 per cent, and CBA’s projection is +2.0 per cent for 2026. These bank forecasts reflect expectations that tighter listings and continued rental strength will support prices, while higher borrowing costs and affordability limits will keep gains moderate rather than rapid. The Openagent market research notes that Hobart’s recent upswing has been driven by falling advertised stock and strong rent growth, which helps explain why some banks are more optimistic for Hobart than for the largest capitals.   

RBA cash rate forecast 2026

On 3 February 2026, the Reserve Bank of Australia (RBA) raised the cash rate by 0.25 percentage points to 3.85 per cent, noting that inflationary pressures had resurged (CPI was around +3.8 per cent) and demand was running strong. Most analysts had anticipated a hike given the recent uptick in inflation, although some saw it as a cautious first step pending further data. Below are the major banks’ updated forecasts (based on their latest published views heading into 2026): 

• CBA: Forecasts no further hikes for 2026, holding at 3.85 per cent.
• Westpac: Forecasts no further hikes for 2026, holding at 3.85 per cent.
• NAB: Forecasts one more hike in May, taking the cash rate to 4.10 per cent.
• ANZ: Forecasts no further hikes for 2026, holding at 3.85 per cent.

What this means for the Hobart market

Hobart cooled off last year after a very strong run-up when low rates drove a boom. Now, with this rate rise, Hobart’s market is likely to flatten. Buyers in Hobart already face stretched budgets; higher rates make home loans more expensive, which tends to dampen demand more here. Historically, when rates rise, Hobart’s growth slows or stalls entirely because its boom is sensitive to financing costs. We expect only very modest growth or stabilisation in Hobart prices. In short, this hike may simply set a new floor for Hobart values rather than sparking renewed growth.

Hobart house prices graphs and charts

Hobart house price growth over the last 5 years has moved from a sharp COVID-era boom into a correction and is now in a measured recovery. As of February 2026, Cotality’s dataset shows dwelling values rose by +0.5 per cent over the month, +2.6 per cent over the quarter and +7.0 per cent over the year, leaving values -5.1 per cent below the March 2022 peak, according to Cotality’s analysis.

The five-year chart highlights a big surge in 2021, a clear downturn through 2022 into early 2023, then slow stabilisation and small positive quarters through 2024–26. Cotality’s findings underline that Hobart’s cycle has been more sensitive to interest rate rises than some larger capitals, which helps explain the deeper correction and the measured nature of the rebound.

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 data for the reporting month points to a market where activity has picked up, but stock remains tight, and homes are changing hands at a broadly similar pace to recent months. The following paragraphs set out what the data is showing and what that means for buyers and sellers in plain terms.

Hobart sales volume and days on market

Hobart recorded a strong lift in sales activity in the month of January 2026, with sales volume up 10.4 per cent year‑on‑year, outpacing growth in many other capitals and the national average. At the same time, the median time a Hobart property spent on the market over the three months to January was 28 days, a little slower than a year earlier but generally in line with most capital cities’ selling times. 

^{Source: Cotality}

That jump in sales shows there were more completed transactions than a year earlier, which is notable given how small the Tasmanian market is compared with the mainland capitals. The days‑on‑market reading tells us properties are still turning over reasonably quickly in Hobart, so while buyers have some time to consider options, they still need to act if they want a particular property. Compared with faster markets (where homes clear in under a month), Hobart sits in the middle — not rushed, but certainly not slow. 

Hobart new and total listings

Fresh listings into the Hobart market were lower over the year to January 2026, with new listings down about 5.4 per cent and total advertised supply down around 30.7 per cent compared with the same time last year. Nationally and across the capitals, overall new and total listings were also lower, which is a key driver of price support.

^{Source: Cotality}

That fall in total listings means buyers have fewer homes to choose from, even if there are more sales taking place — a combination that keeps upward pressure on prices. For vendors, it’s a helpful backdrop because less competition from other sellers usually makes it easier to achieve a sale close to the asking price. For buyers, it means patience and quick decision‑making are often required when suitable stock appears.

Hobart vendor discount

Vendor discount refers to the percentage difference between the initial asking price and the actual sale price, offering insight into the bargaining power buyers enjoy. It’s a key indicator because tighter discounts imply that sellers are standing firm on price, whereas wider discounts suggest a softer market and potentially more aggressive bargaining.

^{Source: Cotality}

Across 2025, Hobart tended to sit toward the higher end of vendor discounts among the capitals, with median discounts commonly around the mid‑to‑high single digits in tenths (for example, readings near ‑4.4 per cent in some months), showing buyers have had scope to negotiate. That said, the tighter overall stock levels seen into January mean vendors are less likely to need large discounts to secure a buyer compared with earlier in the cycle.

Hobart property investing

Hobart’s rental market remains very tight, with limited available stock and rents that have been rising faster than many other capitals. Below we set out the latest rental rate, yield and vacancy information and explain what’s driving conditions in Hobart right now.

Hobart rental market

This section looks at rental rates, yields and how quickly rents have been changing across houses and units. The table below contains the detailed figures for Hobart alongside national and other capital city metrics from the latest monthly housing data. These numbers show how rental income compares with dwelling values and how rents have moved over the year.

^{Source: Cotality}

Hobart has been one of the stronger rental growth markets, supported by a small supply base and strong demand, which helps explain why annual rents have risen faster here than the national average. Cotality’s data show Hobart’s rental yields remain above the combined capitals’ average while its annual rent increases for houses and units are among the largest recorded in the smaller capitals, reflecting both stronger weekly rents and a relatively constrained rental stock.  

Hobart vacancy rates

Vacancy rates show how easy it is for tenants to find a home and how much bargaining power tenants or landlords have—low vacancy usually means tenants face more competition and rents can rise. Nationally, vacancy rates remain well below long-run averages, and most capitals are still operating with very little spare rental stock according to the latest SQM release.

^{Source: SQM Research}

What stands out for Hobart is how low its vacancy rate remains compared with the national level and most other capitals. SQM’s monthly data show Hobart’s vacancy was very small and steady month-to-month, which helps explain why Hobart’s combined asking rents have recorded double-digit annual growth and why rent pressures are likely to persist until more supply arrives or demand eases. Cotality’s commentary also highlights Hobart as one of the smallest capitals recording some of the strongest rental growth, reinforcing the picture of tight local conditions.  

Sam Tate, Head of Property at SQM Research said in the latest SQM rental market report

“The decline in the national vacancy rate to 1.2% in January highlights how quickly seasonal increases in rental supply can be absorbed in Australia’s current market. Most capital cities recorded tightening conditions, particularly Brisbane, Perth and Darwin, where vacancy rates are again sitting below 1%. With advertised rents rising in many markets early in the year, it suggests tenant demand remains strong. Unless we see a meaningful increase in new rental supply, upward pressure on rents is likely to persist through the first half of 2026.” 

Hobart reinforces the “structurally tight” theme, with vacancy holding at 0.4% in both December 2025 and January 2026, while vacancies edged down from 124 to 112. Compared with January 2025, conditions remain extremely tight, with very little slack even when the headline national market moves around seasonally. 

Combined asking rents are $573.31 per week and up 10.1% over the year, which is the clearest signal of sustained affordability pressure despite vacancy not tightening further month-to-month. Even with a slight rolling monthly dip (-0.4%), the annual growth rate suggests Hobart remains highly sensitive to small shifts in demand or stock.

Top growth areas in Hobart

^{Source: Cotality}

Highlights for Hobart’s top growth areas

• Hobart - North West ranked #1 in January 2026 with a median value of $618,219 and annual growth of 11.0 per cent, and it has been a top-two performer in each of the previous six months, indicating sustained buyer demand in more affordable northern corridors.
• Hobart - North East (rank #2, median $763,856, 7.7 per cent) continues to show strong growth supported by eastern shore connectivity upgrades, while Hobart Inner (rank #5, median $880,192, 4.8 per cent) sits at the highest median value on the list, reflecting limited inner-city land and steady demand for apartments and smaller dwellings. Suburbs to watch in Hobart - North East: Sandford 
• Hobart - South and West ranked #3 with a median of $827,332 and annual growth of 7.1 per cent, driven by lifestyle demand and sustained interest from families and downsizers in coastal‑fringe suburbs.
• Brighton (rank #4, median $594,435, 5.8 per cent) and Sorell - Dodges Ferry (rank #6, median $652,350, 3.8 per cent) illustrate the spread between entry-level and commuter coastal markets, with Brighton buoyed by planned lot releases and Sorell linked to road upgrades that improve access to Hobart.
• The same six SA3s featured in December 2025’s top six and remain the January 2026 leaders, showing a stable cluster of high-growth areas where medians range from $594,435 to $880,192 across the list and competition is being sustained by constrained listings and ongoing infrastructure work.