Hobart property market data, trends, forecasts

Hobart property market news - key takeaways

• Prices starting to grow: Hobart home values climbed by +0.6 per cent in May, building on a +0.7 per cent rise in April. This results in a positive annual change of +1 per cent, the strongest since September 2022.
• Supply remains constrained: According to CoreLogic, Hobart is still grappling with limited supply, as the market recovers from a significant drop in listings.
• Selling market dynamics: The Hobart property market remains active, with homes selling faster than 12 months ago. This reflects ongoing demand despite slower market conditions long-term.
• Rental market tightness persists: Hobart’s rental market is extremely tight, with a vacancy rate of just 0.6 per cent. Rents jumped by +3.6 per cent over the month and +7.6 per cent annually, highlighting a severe undersupply.
• Interest rate cuts expected: The RBA's recent rate cuts are expected to positively influence the Hobart property market, potentially boosting $ buyer confidence and affordability.

Hobart property price movements

After a number of sluggish years, the Hobart property market is beginning to show some positive signs with a recent uptick in home values. However, it is still sitting below previous highs, indicating a slow recovery phase.

Hobart property prices - May 2025

In May 2025, Hobart's property values rose by +0.6 per cent for the month, +0.9 per cent for the quarter, and +1.0 per cent over the past year. The median property value in Hobart now stands at $673,858.

^{Source: Cotality}

This growth is encouraging, but the market is still climbing back from a significant drop since its peak in March 2022. The current median value shows gradual improvement, though challenges like affordability and supply constraints continue to affect the market.

House prices in Hobart

Hobart house prices increased by +0.7 per cent over the month, +1.0 per cent for the quarter, and +1.4 per cent over the past year, with the median house price now at $715,165.

^{Source: Cotality}

The Hobart housing market is on a modest recovery path, with house prices showing steady growth. However, the market is still adjusting from previous highs, and affordability remains a concern for potential buyers. The Hobart housing market is gradually stabilising, but broader economic factors are slowing the pace of growth.

Unit prices in Hobart

Unit prices in Hobart saw a slight decrease of -0.1 per cent over the month but increased by +0.6 per cent over the quarter. Over the past year, unit values have decreased by -1.0 per cent, with the median unit price at $537,100.

^{Source: Cotality}

The Hobart unit market is facing some challenges, with values slightly declining over the past month. Despite this, there is a quarterly improvement, indicating some resilience in the market. Demand for units is influenced by factors such as rental yields and affordability compared to houses.

Hobart property market forecasts 2025-26

Australia’s big four banks regularly release house price forecasts. These reports are part of their economic research to support mortgage-lending decisions, manage risk, and demonstrate their market expertise.

Here's what's expected around the country in 2025.

^{Source: Westpac Housing Pulse, NAB Residential Property Survey.}

Hobart is expected to see slightly slower growth compared to other capital cities. The Hobart property market predictions indicate a stable environment, with potential for gradual price increases as economic conditions improve.

Hobart home price forecasts 2025

Westpac predicts a +3.0 per cent increase in Hobart property prices for 2025, while NAB expects a +3.3 per cent rise. 

These forecasts are shaped by the anticipation of further rate cuts by the RBA, which could boost borrowing capacity and stimulate demand. However, high household debt levels in Tasmania might slow the pace of growth, as it may take more than a few rate cuts to significantly enhance buyer confidence.

RBA cash rate forecast 2025

Recent quarterly inflation data was lower than expected, suggesting easing price pressures and paving the way for rate cuts. However, banks remain cautious due to global uncertainties like trade tensions and commodity price fluctuations.

• CBA: Anticipates three 25 basis point cuts at the May, August, and November 2024 meetings, reducing the cash rate from 4.10 per cent to 3.35 per cent by November 2025.
• Westpac: Expects two 25 basis point cuts in May and July 2025, with the cash rate reaching 3.35 per cent by the end of 2025.
• NAB: Forecasts a 50 bps cut at the May 2024 meeting, followed by 25 bps reductions in July, August, and November 2024, and another 25 bps in February 2025, bringing the cash rate to 2.60 per cent by February 2025.
• ANZ: Predicts three more 25 bps cuts—in May, July, and August 2025—lowering the cash rate to 3.35 per cent by August 2025.

What this means for the Hobart market

After a significant rise during the pandemic, Hobart’s market cooled in 2024. Lower interest rates could help stabilise the market, especially for first-home buyers who’ve been affected by higher repayments. However, household debt levels in Tasmania are high compared to incomes, so it may take more than one or two cuts to meaningfully boost buyer confidence. We’re only weeks away from the RBA’s last decision, so it’ll take time before we see a clear shift in momentum.

Hobart house prices graphs and charts

Hobart's house price growth over the last 5 years has seen ups and downs, with a recent uptick. As of May 2025, dwelling values increased by +0.6 per cent for the month, +0.9 per cent for the quarter, and +1.0 per cent for the year. Despite this, prices are still -10.5 per cent below their peak in March 2022.

The five-year chart reveals that after a strong COVID boom, Hobart's market took a sharp downturn and has struggled to regain its footing. CoreLogic data shows that all price points grew at a similar rate, which is unexpected given the overall market's challenges.

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.

Hobart sales volume and days on market

In May 2025, Hobart's sales volume increased by +0.6 per cent compared to the previous year. The median days on market for properties in Hobart over the last three months was 47 days, up from 40 days in May 2024.

The increase in days on market means properties are selling slower than last year, suggesting a decline in buyer urgency. This may be influenced by Hobart's slow price growth, reducing buyer fears of missing out before the market rises.

Hobart new and total listings

Leading up to June 2025, Hobart saw a -5.0 per cent decrease in new listings and a notable -15.7 per cent drop in total listings compared to the same period last year.

The fall in both new and total listings indicates fewer properties are available for sale, which might heighten competition among buyers. If demand stays steady or rises, this scarcity could push prices up, creating more of a seller's market.

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.

Hobart vendor discount over time

^{Source: Cotality}

In Hobart, the median vendor discount over the last three months was -3.6 per cent, slightly higher than the national median of -3.4 per cent. 

This indicates that sellers in Hobart are offering slightly larger discounts compared to the national average, which might reflect a need to attract buyers in a market with reduced listing volumes. However, the discount is still relatively moderate, suggesting that while sellers are willing to negotiate, they are not under significant pressure to lower prices drastically.

Hobart property investing

Hobart's rental market is in a lively phase, marked by a tight supply and shifting demand. Let's dive into the rental rates, yields, and vacancy trends that are shaping Hobart's current market scene.

Hobart rental market

Rental rates in Hobart have surged, highlighting the ongoing demand in the city. Over the past year, rents for houses have increased by 4.6 per cent, while units have seen a 7.1 per cent rise. This reflects a strong growth path for Hobart's rental market.

^{Source: Cotality}

Hobart's rental yield is at 4.4 per cent, which is quite high compared to other capital cities. This suggests a solid return on investment for property owners. 

The limited supply of rental properties has kept vacancy rates low and rents high, making the market competitive. Tenants face limited choices, while landlords benefit from the high demand.

Hobart vacancy rates

Vacancy rates are key to understanding the rental market's health, showing the balance between supply and demand. 

Nationally, vacancy rates have slightly increased, hinting at a small easing of rental pressures. However, Hobart and most other capital cities still have historically low vacancy rates, indicating a tight rental market.

^{Source: SQM Research}

In Hobart, the vacancy rate has dropped significantly from 1.4 per cent in May 2024 to just 0.6 per cent in May 2025. This sharp decline highlights the severe shortage of available rental properties, making Hobart one of the tightest rental markets in Australia. 

Compared to other cities, Hobart's vacancy rate is among the lowest, showing the intense competition among tenants. The limited availability continues to drive up rents, maintaining a market that favours landlords.

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

“The rise in national vacancy rates to 1.3% reflects a shift toward a slightly eased rental market, particularly in Melbourne and Sydney, where increased supply is providing tenants with more options. However, tight markets in Hobart, Darwin, and Perth continue to favour landlords, potentially triggering further rental price growth in those regions. 

It is typical that over the winter period, the rental market goes into somewhat of a lull with rental vacancy rates rising a notch. This winter might prove to be a good time for tenants looking for rental properties, keeping in mind we don’t expect this lull to last any more than a few months.”

Hobart’s vacancy rate remains steady at 0.6 per cent, underscoring the entrenched shortage Louis mentions. Rents have surged by 3.6 per cent over the month and 7.6 per cent annually, showing how severe undersupply can push rents higher even when vacancies don’t tighten further. 

With vacancies barely at half a per cent, Hobart is Australia’s second-tightest capital market, leaving little room for tenant negotiation. Significant new supply or a slowdown in population growth is needed before any meaningful relief emerges.

Top growth areas in Hobart

^{Source: Cotality}

Highlights for Hobart’s top growth areas

• Hobart - North East is leading the charge in May 2025, sitting at #1 with a median value of $727,277. Annual growth has reached +4.7 per cent, up from +4.1 per cent last month. This boost is largely due to infrastructure upgrades and strong interstate migration. Suburbs to keep an eye on include Sandford.
• Brighton holds the #2 position with a median value of $554,139. Growth has climbed to +3.5 per cent, up from $537,092 and +3 per cent in May. Affordability and new estate developments are keeping buyer interest steady.
• Hobart - North West ranks #3, showing a rapid increase to +3.3 per cent growth with a median of $555,152. This is a significant jump from +1.5 per cent in May, driven by the $54 million Rapid Bus Network plan and improved retail connectivity.
• Sorell - Dodges Ferry at #5, with a median of $626,275, has seen a decrease of -1.3 per cent. Similarly, Hobart Inner at #6, with a median of $835,165, has decreased by -3.5 per cent. These areas are experiencing a cooling effect due to high prices and tight vacancies, although upcoming infrastructure projects may boost demand.
• Hobart - South and West moves up to #4 with a median of $768,926 and a growth of +0.7 per cent, up from +0.3 per cent in May. This reflects steady investor interest, driven by the area's coastal appeal and heritage streetscapes.