Hobart property market data, trends, forecasts

Hobart property market news - key takeaways

• Price movements sluggish: Hobart housing values are on the rise but are lagging behind other capital cities. According to Cotality’s latest figures, values increased by just +0.1 per cent in September, which is significantly below the combined capitals benchmark of +0.9 per cent.
• Supply constraints: Listings in the Hobart property market are trending downwards, with a decrease of 33 per cent year-on-year and 17 per cent below the five-year average, as reported by Cotality. This low supply could potentially lead to stronger growth.
• Selling market dynamics: Hobart’s property market is softer compared to other capital cities, with a cautious outlook in the near term. Homes that are ready to move into, with good lighting and parking, are performing better, while properties requiring more maintenance are seeing discounts.
• Rental market tightness: Hobart is experiencing near record-low vacancy rates, similar to the national trend, with rates dropping further to 0.4 per cent. This scarcity is driving rents up by +8.6 per cent annually, highlighting the limited new supply.
• Stable interest rates: The Reserve Bank of Australia maintained the cash rate at 3.60 per cent during its September 2025 meeting. This decision indicates a pause to reassess incoming data, with financial conditions easing compared to the beginning of the year.

Hobart property price movements

The Hobart property market is on a slow path to recovery. While growth in dwelling values lags behind other capital cities, the limited supply might pave the way for stronger growth in the coming months.

Hobart property prices - September 2025

Hobart's property values have nudged up slightly, with a monthly and quarterly change of +0.1 per cent. Over the past year, values have increased by +2.7 per cent, bringing the median value to $683,390.

^{Source: Cotality}

Despite this growth, the Hobart property market is still 9.5 per cent below its peak in March 2022. Listings have dropped by 33 per cent year-on-year, which could tighten the market and potentially drive stronger price growth in the future.

House prices in Hobart

The Hobart housing market has held steady, with no change in house values over the past month and quarter. However, over the past year, house values have risen by +2.8 per cent, with the median house price now at $729,091.

^{Source: Cotality}

The Hobart housing market faces challenges like affordability constraints and a cautious lending environment. Yet, the stability in Hobart house prices points to a resilient market, with potential for growth as supply remains limited.

Unit prices in Hobart

Unit prices in Hobart have seen more noticeable growth, with a monthly rise of +0.6 per cent and a quarterly rise of +0.4 per cent. Over the past year, unit values have grown by +2.3 per cent, with the median unit price reaching $549,901.

^{Source: Cotality}

Hobart unit prices are benefiting from increased demand, especially as buyers seek more affordable options compared to houses. The limited supply of units, along with rising demand, is likely to continue supporting unit price growth in the Hobart market.

Hobart property market forecasts 2025-26

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

<sup>Source: Westpac Housing Pulse, NAB Residential Property Survey, CBA Economic Update, ANZ Housing Outlook. No prediction data for Canberra or Darwin.
* ANZ estimate for Capital Cities, not national</sup>

Hobart's property market predictions suggest a slower growth rate compared to other capital cities. While the national outlook is positive, Hobart is likely to see more gradual price increases due to its unique market conditions and challenges.

Hobart home price forecasts 2026

Westpac predicts a +2 per cent rise in Hobart property prices in 2026, while NAB anticipates a slightly higher growth of +3.6 per cent. ANZ is more conservative, expecting a +1.8 per cent increase. These forecasts imply that Hobart's market may stabilise rather than accelerate, influenced by affordability constraints and selective buyer interest in move-in-ready homes.

RBA cash rate forecast 2025-2026

The RBA kept the cash rate at 3.60 per cent at its late-September meeting. The focus is now on whether the Board will make a move before the year ends or wait until early 2026. The current discussion revolves around the next CPI print and signs of easing in services inflation and wage growth, despite a tight rental market and strong employment figures. The four major banks have updated their views, with most expecting no further cuts in 2025, except for one notable exception.

• CBA: No further move in 2025; a -0.25 percentage point cut in February 2026 (cash rate to 3.35 per cent by early 2026).
• Westpac: Expects a -0.25 percentage point cut in November 2025, followed by two more in February and May 2026 (cash rate to 2.85 per cent by mid-2026).
• NAB: No further move in 2025; a -0.25 percentage point cut in May 2026 (cash rate to 3.35 per cent by mid-2026).
• ANZ: No further move in 2025; a -0.25 percentage point cut in February 2026 (cash rate to 3.35 per cent by early 2026).

What this means for the Hobart market

Hobart’s affordability advantage has lessened, and it has underperformed since rates increased earlier in the cycle. A continued hold into November likely means stabilisation rather than acceleration for the rest of 2025, with more significant support expected if the next cut occurs in November or early 2026. 

Buyer interest is selective, with move-in-ready houses featuring good light and parking performing better, while higher-maintenance properties face discounts. Cotality’s latest data keeps Hobart at the softer end of the capital-city spectrum, reinforcing a cautious short-term outlook.

Hobart house prices graphs and charts

Hobart's house price growth over the last 5 years has seen a significant rise, a steep downturn, and a gradual recovery. As of October 2025, dwelling values nudged up by +0.1 per cent for the month, +0.1 per cent for the quarter, and +2.7 per cent over the year. However, prices are still -9.5 per cent below their peak in March 2022.

Cotality's data shows that after leading the gains in 2020–2021, Hobart faced the deepest and longest downturn of any capital city starting mid-2022. The market began to stabilise in 2024, with quarterly figures hovering around zero. By 2025, monthly changes turned slightly positive.

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 October 2025 is navigating through a mix of influences. Sales volumes have shown some resilience, yet the longer time properties spend on the market hints at cautious buyer sentiment. Vendor discount rates reveal that sellers are still open to negotiation, though slightly less than in previous months.

Hobart sales volume and days on market

In October 2025, Hobart saw a +5.5 per cent rise in sales volume compared to the previous year. However, properties are taking longer to sell, with a median time on market of 36 days, up from 35 days in September 2024.

^{Source: Cotality}

The extended days on market in Hobart, compared to the national median of 30 days, suggest that while there is buyer interest, decisions are taking longer. This could be due to buyers being more selective or waiting for better opportunities. Compared to other capitals, Hobart's market is slower, reflecting a more cautious approach from buyers.

Hobart new and total listings

Hobart experienced a -10.8 per cent decrease in new listings and a significant -32.9 per cent decrease in total listings from September 2024 to September 2025.

^{Source: Cotality}

The sharp drop in total listings indicates a tighter market, with fewer properties available for sale. This scarcity could drive up competition among buyers, although the extended days on market suggest that this hasn't yet translated into quicker sales. The decrease in new listings may also reflect potential sellers' reluctance to enter the market amid uncertain conditions.

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 vendor discount rate in the three months to September 2025 was -3.9 per cent, slightly tighter than the national median of -3.2 per cent. This indicates that sellers in Hobart are conceding less on their asking prices compared to the previous year. The narrowing of discounts suggests that while buyers are cautious, sellers are confident in the value of their properties, possibly due to the reduced supply of listings.

Hobart property investing

Hobart's rental market is undergoing notable shifts. Rental rates are climbing, while vacancy rates are dropping. This combination points to a market with limited supply, affecting both renters and investors. Let's explore the statistics on rental rates, yields, and vacancy trends to understand what's shaping the conditions in Hobart.

Hobart rental market

Rental rates in Hobart have surged over the past year due to strong demand and limited supply. Gross rental yields in Hobart are among the highest in the capitals, making it an appealing market for investors. These trends provide the backdrop for the detailed metrics below.

^{Source: Cotality}

Despite the attractive rental yields, Hobart's market is marked by a significant shortage of available properties, pushing rents higher. The annual increase in rents for both houses and units has been considerable, highlighting the pressure on the rental market. This is partly due to fewer total listings, limiting options for potential tenants.

Hobart vacancy rates

Vacancy rates are crucial for understanding the balance between supply and demand, showing how easily tenants can find properties and negotiate rents. Nationally, vacancy rates have eased slightly, but Hobart remains one of the tightest markets. The scarcity of available rentals continues to drive rent increases, with Hobart recording one of the lowest vacancy rates among the capitals.

^{Source: SQM Research}

Hobart’s current vacancy rate is 0.4 per cent, well below the national average, underscoring the severe shortage of rental properties. This is a drop from 0.8 per cent a year ago, indicating a tightening market. Compared to other cities, Hobart's vacancy rate is exceptionally low, which continues to support strong rental growth.

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

“The national vacancy rate holding at 1.2% suggests the rental market remains very tight, with little sign of meaningful supply increases. Sydney and Brisbane continue to see strong tenant demand, while Hobart remains at near record-low vacancy levels. Rents are still rising in most capitals, particularly for houses, despite a slight easing in rental growth rates compared to last year. Overall, we are still seeing an undersupplied rental market, although conditions appear to be stabilising in some cities such as Melbourne and Canberra.”

Hobart mirrors Louis’s reference to near record-low vacancy, having fallen further to 0.4%. That scarcity continues to underpin rents despite occasional monthly softness. Combined rents eased 0.2% over the month but are up 8.6% annually, reflecting limited new supply. With the lowest vacancy of any capital, tenants have very few options and pricing remains sensitive to small demand changes.

Top growth areas in Hobart

^{Source: Cotality}

Highlights for Hobart’s top growth areas

• Hobart - North West takes the top spot in October 2025 with a median value of $560,230, showing a +5.1 per cent annual growth. The new Bridgewater Bridge has improved access, drawing in young families and migrants.
• Hobart - North East is in second place with a median value of $723,478 and a +4.3 per cent growth. Its coastal amenities and quick access to the CBD, along with ongoing traffic infrastructure upgrades, enhance its appeal. (Suburbs to watch: Sandford)
• Hobart - South and West ranks third, with a median value of $791,562 and a +3.4 per cent annual growth. Its proximity to schools and health services, along with improved transport links, makes it attractive to families and professionals. Suburbs to watch include South Hobart, West Hobart, and Sandy Bay.
• Brighton has a median value of $557,930 with a +3.4 per cent annual growth. It is a key family area now more accessible thanks to the Bridgewater Bridge. Its ongoing development and closeness to amenities keep it in high demand among homebuyers and renters.
• Sorell - Dodges Ferry has a median value of $634,006 and a +1.7 per cent annual growth. It attracts families looking for a coastal lifestyle with developing transport links to Hobart, ensuring steady demand and tight rental conditions. Suburbs to watch are Sorell and Dodges Ferry.