Hobart property market data, trends, forecasts

Hobart property market news - key takeaways

• Price movements show growth: Hobart home values edged up by 0.1 per cent in July, marking a +1.6 per cent increase over the first seven months of the year. Despite this, values are still -10.4 per cent below their peak from March 2022, according to Cotality’s latest figures.
• Supply constraints persist: Cotality’s research highlights a consistent drop in advertised supply levels, with listings nearly 30 per cent lower than a year ago in July. This has supported the subtle rise in values.
• Selling market sees recovery: The Hobart property market is on a recovery path, with days on market expected to shorten as borrowing power improves. The recovery is anticipated to be steady.
• Rental market remains tight: SQM data shows Hobart’s vacancy rate at a low 0.6 per cent in July 2025, down from 1.2 per cent a year ago, indicating a landlord-favoured market. Cotality reports a +2.0 per cent increase in house rents over the past three months.
• Interest rates expected to ease: With anticipated rate cuts by the RBA, interest rates are likely to decrease, potentially improving affordability and supporting market activity in the Hobart property market.

Hobart property price movements

The Hobart property market is slowly bouncing back. While dwelling values are inching up, they are still a fair way off their peak from March 2022.

Hobart property prices - July 2025

In Hobart, property prices have seen a slight uptick. The monthly change in dwelling values was +0.1 per cent, with the same +0.1 per cent change quarterly, and a +1.9 per cent increase over the year. As of July 2025, the median value for Hobart properties was $673,383.

^{Source: Cotality}

This gradual rise in property values is partly due to a significant drop in advertised supply, which is nearly 30 per cent lower than last year. This reduced supply is helping to keep prices steady, even though they are still 10.4 per cent below their peak.

House prices in Hobart

Hobart house prices dipped slightly last month, with a -0.1 per cent change. However, they held steady over the quarter and have grown by +2.2 per cent over the year. The median value for Hobart houses in July 2025 was $714,691.

^{Source: Cotality}

The Hobart housing market is still finding its footing, with house prices gradually recovering from earlier declines. Despite the recent monthly drop, the yearly growth shows some resilience. The Hobart housing market is shaped by ongoing low supply and affordability challenges.

Unit prices in Hobart

Unit prices in Hobart are on a more positive trajectory, with a monthly rise of +0.9 per cent. They also increased by +0.9 per cent over the quarter, and the annual change was +0.4 per cent. The median value for Hobart units in July 2025 was $552,352.

^{Source: Cotality}

Hobart unit prices have shown more resilience compared to houses, with steady growth in recent months. Units are becoming more appealing due to their lower price points, making them a viable option for buyers facing affordability issues. The tight supply and rental market conditions are also pushing Hobart unit prices upward.

Hobart property market forecasts 2025-26

Australia's big four banks regularly release house price forecasts as part of their economic research. This helps them make informed mortgage-lending decisions, manage risk, and demonstrate their market expertise. Here's what they expect for 2025 and 2026.

^{Sources: Westpac Housing Pulse, NAB Residential Property Survey, ANZ Australian Housing Chartpack, Commonwealth Bank Economic Insights}

Hobart is predicted to experience slower growth compared to some other capital cities. These Hobart property market predictions suggest a steady, albeit slow, increase in house prices. This reflects the city's smaller and more volatile market dynamics.

Hobart home price forecasts 2025

Westpac anticipates a +2.0 per cent rise in Hobart property prices for 2025, while NAB forecasts a slightly higher growth of +2.5 per cent. ANZ is more conservative, expecting a +2.4 per cent increase. 

These forecasts indicate that although Hobart's growth may be slow, it remains positive. This is supported by a consistent reduction in advertised supply levels. Due to the city's smaller market size and earlier affordability challenges, any gains are likely to be gradual unless new supply remains limited for a long period.

RBA cash rate forecast 2025

On 12 August 2025, the RBA reduced the cash rate by -0.25 percentage points to 3.60 per cent. The Bank cited inflation returning to the 2–3 per cent target range, softer labour-market readings, and a subdued demand backdrop as key reasons for easing. However, they noted that uncertainty remains high. Here's where the major banks think the cash rate is heading next:

• CBA: Two more cuts in 2025 (September and December), ending 2025 at 3.35 per cent, then two cuts in Q1 2026 to 2.85 per cent.
• Westpac: No September cut; two cuts by early 2026 (November 2025 and February 2026), to 3.10 per cent.
• NAB: One cut in September 2025 and another in February 2026, to 3.10 per cent.
• ANZ: Two cuts in 2025 (September and November), then two in Q1 2026, to 3.10 per cent.

What this means for the Hobart market

Hobart's smaller and more volatile market means that while rate cuts can help, the response might be uneven. Expect sentiment to improve and days-on-market to gradually decrease as borrowing power increases. However, the recovery is likely to be gradual due to earlier affordability challenges. In past easing phases, Hobart has benefited, but gains tend to be limited unless new supply remains restricted for an extended period.

Hobart house prices graphs and charts

Hobart's house price growth over the last 5 years has seen its ups and downs. Recent data shows a +0.1 per cent rise in July 2025, a +0.1 per cent increase over the last three months, and a +1.9 per cent change over the past year. Despite these gains, values are still -10.4 per cent below the peak in March 2022.

Cotality’s latest figures reveal that Hobart's five-year chart shows a significant rise during 2020-2021, followed by a sharp downturn through 2022-2023. The market found some stability in 2024, with only minor negative movements, and has started a slow recovery in 2025. However, this recovery is held back by factors like slower population growth and a more balanced market compared to other capitals.

Hobart property prices graph over 30 years

Hobart property prices growth over the last 10 years has been notable, fuelled by low interest rates and a surge in interstate migration. However, recent rate hikes and construction hurdles have reshaped the market. Homeowners are now adapting to a more stable environment, focusing on long-term value rather than quick gains.

Over the past 30 years, Hobart has seen cycles of sharp increases and corrections. The city's limited housing supply and ongoing population growth continue to underpin the market, but sentiment has shifted. Homeowners are now prioritising sustainable improvements and stability, while buyers are cautious, seeking value in a changing economic landscape.

Hobart selling statistics

Hobart's property market in May 2025 is showing a moderate pace, with a small rise in sales volume from the previous year. The market dynamics indicate a slower pace in property transactions, as seen in the days on market data. This suggests a more balanced market where buyers are taking their time to make purchasing decisions.

In August 2025, Hobart's property market showed resilience with a noticeable increase in sales volume compared to the previous year. However, properties are taking longer to sell, indicating a potential cooling in buyer urgency.

Hobart sales volume and days on market

Hobart saw a +3.0 per cent increase in sales volume in July 2025 compared to the same month last year. The median days on market for properties in Hobart rose to 49 days over the three months to July 2025, up from 37 days in July 2024.

^{Source: Cotality}

The increase in sales volume suggests steady demand for properties, yet the longer time on market indicates that buyers are taking more time to make purchasing decisions. Compared to other capitals, Hobart's days on market is significantly higher, suggesting a slower market pace. Nationally, the median days on market is 35 days, highlighting Hobart's relatively sluggish market conditions.

Hobart new and total listings

New listings in Hobart saw a decrease of -20.5 per cent from July 2024 to July 2025, while total listings decreased by -31.0 per cent over the same period.

^{Source: Cotality}

The major decrease in both new and total listings indicates a tightening supply in the Hobart market. This could be due to sellers holding off on listing their properties, possibly waiting for more favourable market conditions. Compared to other capitals, Hobart's reduction in listings is more pronounced, which could contribute to the longer days on market as buyers have fewer options to choose from.

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}

Hobart's median vendor discount over the last three months to July 2025 was 4.7 per cent, which is higher than the national median of 3.4 per cent. This wider discount suggests that sellers in Hobart are more willing to negotiate on price compared to other cities, reflecting a softer market. This aligns with the longer days on market, indicating that buyers may have more negotiating power in Hobart compared to other capitals.

Hobart property investing

Hobart’s rental market is one of the tightest in Australia. Low vacancy rates are pushing rents higher, and the city is grappling with a persistent undersupply of rental properties. Below, we delve into the statistics on rental rates, yields, and vacancy trends to give you a clear picture of Hobart's current rental conditions.

Hobart rental market

Rental rates in Hobart have surged, highlighting the city's ongoing supply issues. Both houses and units have seen notable annual rent increases. Gross rental yields have inched up, showing a strong rental market despite the challenges tenants face.

^{Source: Cotality}

Hobart's rental market is heavily influenced by its low vacancy rate, one of the lowest among Australian capitals. This supply shortage has led to a +5.6 per cent rise in rental rates over the past year. Rental yields have also shown resilience, with a slight increase to 4.4 per cent, indicating that despite rising rents, the market remains appealing for investors.

Hobart vacancy rates

Vacancy rates are key to understanding the supply-demand balance in the rental market. Nationally, vacancy rates have eased slightly, but cities like Hobart remain historically tight. This tightness continues to drive rents up, making it tough for tenants to find affordable housing.

^{Source: SQM Research}

Hobart's vacancy rate is critically low at 0.6 per cent, down from 1.2 per cent a year ago. This highlights the severe shortage of rental properties, leaving tenants with few options and pushing rental prices higher. Compared to other cities, Hobart's vacancy rate is among the lowest, indicating a market that strongly favours landlords.

Louis Christopher, Managing Director of SQM Research said in his latest rental market report

“Vacancy rates remain tight across most capital cities, and this is continuing to place upward pressure on rents,” said Louis Christopher, Managing Director of SQM Research. “While there are short-term fluctuations—particularly in Perth and Canberra—the broader trend is clear: rental affordability is deteriorating, especially in Sydney, Brisbane, and Hobart. Unless we see a meaningful uplift in rental supply, particularly in the inner and middle rings of our major cities, the market will remain challenging for tenants heading into spring.”

Hobart aligns with Louis’s observations on worsening affordability, with vacancy too low to break the rent-rise cycle. Any seasonal increase in available rentals has been modest. July data shows limited stock, especially for well-located units, keeping rents high. Without new supply, the market is likely to tighten again as spring activity picks up.

Top growth areas in Hobart

^{Source: Cotality}

Highlights for Hobart’s top growth areas

• Sorell takes the top spot with a median value of $450,000 and an impressive annual growth of +14.5 per cent. It has consistently appeared in 5 of the last 6 months’ top 10, showing strong stability. Suburbs to keep an eye on include Sorell and Dodges Ferry.
• Kingston comes in at #2 with a median value of $500,000 and growth of +13.2 per cent. It has climbed 3 positions over the past 6 months, indicating increasing buyer interest. Notable suburbs are Kingston and Blackmans Bay.
• Greater Hobart North is a newcomer at #4, boasting a median value of $530,000 and growth of +12.0 per cent. This marks a swift ascent in the rankings.
• Derwent Valley is ranked #3 with a median value of $480,000 and growth of +12.8 per cent. Its consistent past performances highlight strong demand. Suburbs to watch include New Norfolk and Longley.
• Huon Valley rounds out the top 5 with a median value of $460,000 and growth of +11.5 per cent. It stands out with strong performance despite being in a lower price bracket. Key suburbs are Huonville and Franklin.