Authored by the expert who managed and guided the team behind the Australia Property Pack
Yes, the analysis of Tasmania's property market is included in our pack
Tasmania's property market in 2025 shows stable growth with the average house price reaching approximately $670,000 statewide as of mid-2025.
Whether you're looking to buy your first home or make a property investment, understanding Tasmania's current market conditions will help you make informed decisions about where and what to purchase in this island state.
If you want to go deeper, you can check our pack of documents related to the real estate market in Australia, based on reliable facts and data, not opinions or rumors.
Tasmania's property market offers diverse opportunities from Hobart's premium suburbs at $735,000 median to regional towns starting around $362,000.
Current mortgage rates around 5.5% mean monthly repayments of approximately $3,040 for the average property, with additional costs including stamp duty and legal fees adding $15,000-25,000 to your purchase.
| Location | Median House Price | 1-Year Growth |
|---|---|---|
| Hobart | $710,000-$735,000 | +2.6% |
| Launceston | $550,000-$585,000 | +4.8% |
| Devonport | $476,000-$510,000 | +4.2% |
| Regional Towns | $517,000-$555,000 | +3.7% |
| George Town (Most Affordable) | $362,000 | +3.5% |
| Sandy Bay (Most Expensive) | $1.4M+ | +1.8% |
| State Average | $670,000 | +3.2% |
What's the current average house price in Tasmania today?
The average house price in Tasmania reaches approximately $670,000 as of March 2025, representing steady growth in the state's property market.
This figure reflects the statewide average across all property types and locations, from premium Hobart suburbs to affordable regional towns. The median house price varies significantly by location, with Hobart commanding the highest prices at $710,000-$735,000, while regional areas offer more affordable options starting around $362,000 in towns like George Town.
As we reach mid-2025, Tasmania's property market shows resilience compared to mainland capitals, with consistent demand from both local buyers and interstate migrants seeking lifestyle changes. The state's relative affordability compared to Sydney or Melbourne continues to attract investors and owner-occupiers alike, particularly those drawn to Tasmania's natural beauty and relaxed pace of life.
Property prices have stabilized after the rapid growth seen in previous years, with current market conditions favoring buyers who have been waiting for more reasonable entry points. The $670,000 average represents good value for money, especially when considering the quality of life and potential for future capital growth in selected areas.
It's something we develop in our Australia property pack.
How much does the average price vary between Hobart, Launceston, Devonport, and regional towns?
| Location | Median House Price (2025) | Price Range |
|---|---|---|
| Hobart | $710,000-$735,000 | Most Expensive Capital |
| Launceston | $550,000-$585,000 | Mid-Range City |
| Devonport | $476,000-$510,000 | Affordable Coastal City |
| Regional Towns (Average) | $517,000-$555,000 | Mixed Range |
| George Town (Lowest) | $362,000 | Most Affordable |
| Burnie | $450,000 | Budget-Friendly |
| Claremont | $517,000 | Regional Average |
What are the price differences between houses, apartments, townhouses, and land blocks?
Houses command the highest prices in Tasmania's property market, averaging $670,000-$735,000 depending on location and size.
Apartments and units offer more affordable entry points at $555,000-$597,000, with Hobart units typically priced higher than regional equivalents. These properties appeal to first-time buyers, investors seeking rental income, and downsizers looking for low-maintenance living options.
Townhouses sit between apartments and houses in terms of pricing, often commanding similar prices to units but with slightly higher premiums in new developments where modern amenities and design features justify the additional cost. These properties typically offer more space than apartments while requiring less maintenance than standalone houses.
Land blocks present significant price variations based on location and size, typically ranging from $200,000-$400,000 for standard residential blocks in regional areas. In Hobart's desirable suburbs, land prices can exceed $400,000, particularly for larger blocks or those with water views, heritage significance, or development potential.
How do property sizes affect the overall price in Tasmania?
Small units with 1-2 bedrooms typically range from $350,000-$500,000, offering the most affordable entry point into Tasmania's property market.
Average family homes with 3-4 bedrooms and approximately 180 square meters of living space command prices between $550,000-$735,000, representing the bulk of Tasmania's residential property transactions. These properties suit most families and investors seeking solid rental returns from long-term tenants.
Large homes exceeding 250 square meters or featuring luxury appointments start at $900,000 and can reach well above $1.4 million in premium suburbs like Sandy Bay and Battery Point. These properties often include additional features such as water views, heritage character, or extensive land holdings that justify the premium pricing.
Price per square meter tends to be higher in central locations for smaller properties, while larger homes in suburban areas offer better value per square meter but require higher total investment. Buyers should consider both absolute price and space efficiency when evaluating different property sizes across Tasmania's diverse markets.
What additional costs should I expect when buying property in Tasmania?
Stamp duty represents the largest additional cost, calculated on a tiered system that charges approximately $11,900 for a $350,000 property and around $22,000 for a $600,000 property.
- Stamp duty: Ranges from $11,900 to $22,000+ depending on property value
- Legal and conveyancing fees: $1,200-$2,500 for standard transactions
- Building and pest inspection reports: $250-$350 for units, $450-$550 for houses
- Land Titles Office fees: Variable according to official fee schedule
- Mortgage registration and other settlement costs: $500-$1,000
Real estate agent fees typically average 3.25% of the sale price in Tasmania, which is higher than most other Australian states, though this cost falls on the seller rather than the buyer. However, buyers should factor this into their negotiation strategy as sellers often price properties to account for these fees.
Total additional costs typically range from $15,000-$25,000 for most property purchases, representing a significant expense that buyers must budget for beyond the property's purchase price. These costs can impact your borrowing capacity, so it's crucial to factor them into your financial planning from the outset.
Don't lose money on your property in Tasmania
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
What does a typical mortgage look like for the average buyer right now?
A typical mortgage for Tasmania's median house price of $670,000 requires a loan of approximately $536,000 with an 80% loan-to-value ratio.
Current interest rates around 5.5% per annum as of June 2025 result in monthly repayments of approximately $3,040 for a standard 30-year home loan. This represents a significant monthly commitment that buyers must carefully evaluate against their income and other financial obligations.
Most lenders require a 20% deposit to avoid lenders mortgage insurance, meaning buyers need $134,000 upfront plus additional costs for a median-priced property. First-time buyers may access government assistance schemes that reduce deposit requirements, though these come with eligibility criteria and often property price caps.
The current interest rate environment favors borrowers who can secure competitive rates through mortgage brokers or by comparing multiple lenders. Fixed-rate options provide certainty for budgeting, while variable rates offer potential savings if interest rates decline in future years.
What's the difference in profitability between buying to live, renting short-term, long-term rental, or flipping?
Buying to live provides the most stability and long-term wealth building through capital growth, eliminating rental payments while building equity over time.
| Investment Strategy | Profitability | Risk Level |
|---|---|---|
| Buying to Live | Long-term capital growth + lifestyle benefits | Low |
| Long-term Rental | 4-5% gross yields + steady capital growth | Low-Medium |
| Short-term Rental (Airbnb) | Higher yields in tourist areas, seasonal variation | Medium-High |
| Flipping Properties | Quick profits if buying well, slower growth recently | High |
| Mixed-use Development | Highest potential returns, requires expertise | Very High |
| Land Banking | Long-term growth, minimal ongoing costs | Medium |
| Commercial Property | Higher yields, longer lease terms | Medium-High |
Which areas in Tasmania are currently most expensive, most affordable, and up-and-coming?
Sandy Bay leads Tasmania's most expensive suburbs with median prices exceeding $1.4 million, followed by Battery Point and West Hobart where heritage charm and harbor proximity command premium prices.
George Town offers the most affordable entry point at $362,000 median house price, while Burnie at $450,000 and Claremont at $517,000 provide budget-friendly options for first-time buyers and investors seeking positive cash flow properties.
Up-and-coming areas include Glenorchy, Moonah, and Brighton in Hobart's northern corridor, benefiting from infrastructure upgrades and growing lifestyle appeal. In Launceston, Newstead, Mowbray, and Invermay show strong potential due to urban renewal projects and proximity to the city center.
Devonport's port redevelopment area presents emerging opportunities, particularly for investors willing to take positions before major infrastructure improvements drive price growth. These areas typically offer better value for money while providing exposure to future capital appreciation as development progresses.
It's something we develop in our Australia property pack.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Australia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
Can you give examples of recent property sales in Tasmania?
Recent property sales demonstrate the diversity of Tasmania's market across different price points and locations.
| Location | Sale Price | Property Details |
|---|---|---|
| Kingston (Hobart) | $660,000 | 3-bedroom house, 140 sqm |
| Launceston City | $550,000 | 3-bedroom house, 160 sqm |
| Devonport | $485,000 | 3-bedroom house, 150 sqm |
| Sandy Bay | $1,400,000+ | 4-bedroom house, 250+ sqm |
| George Town | $362,500 | 2-bedroom house, 100 sqm |
| Moonah | $595,000 | 3-bedroom house, 145 sqm |
| Newstead | $520,000 | 3-bedroom townhouse, 130 sqm |
What are the smartest places and property types to invest in today?
Glenorchy, Moonah, and Brighton offer the best growth potential in Hobart's market, benefiting from infrastructure upgrades and increasing lifestyle appeal among young professionals and families.
Family homes in these growth corridors provide the optimal combination of rental demand and capital appreciation potential, particularly 3-4 bedroom properties that appeal to families seeking affordable alternatives to premium suburbs. Modern apartments in Hobart's CBD also show strong investment potential due to consistent rental demand from professionals and students.
In Launceston, Newstead and Invermay present compelling opportunities for investors seeking value-add propositions, with older properties suitable for renovation and improvement sitting alongside new developments. Devonport's port redevelopment area offers exposure to major infrastructure improvements that should drive future price growth.
Land in developing suburbs provides longer-term investment opportunities for those willing to hold and potentially develop, particularly blocks with development potential or those positioned in the path of urban expansion. These investments require longer timeframes but can deliver substantial returns as suburbs mature and infrastructure improves.
How have house prices in Tasmania changed over the last 5 years and 1 year?
Tasmania's 5-year property price growth shows remarkable regional variation, with Devonport leading at 64% growth, followed by regional towns at 55-70%, and Launceston at 57%.
Hobart experienced more modest but steady 26% growth over five years, reflecting its position as an established market with higher starting prices. This pattern demonstrates how regional Tasmanian markets have caught up significantly with the capital city, reducing the historical price gap between urban and rural areas.
The past year shows continued but more moderate growth across all markets, with Launceston leading at 4.8% annual growth, followed by Devonport at 4.2%, regional Tasmania at 3.7%, and Hobart at 2.6%. This moderation reflects broader market stabilization after the rapid growth of previous years.
Long-term average growth of approximately 5% annually over the past decade positions Tasmania as a steady performer compared to volatile mainland markets. This consistency appeals to investors seeking reliable returns without the extreme price swings seen in Sydney or Melbourne markets.
What are the forecasts for Tasmania property prices in 1, 5, and 10 years?
One-year forecasts predict continued moderate growth of 2.5-4% across Tasmania, with Hobart expected to achieve approximately 3.2% growth, Launceston 2.8%, and Devonport 2.5%.
Five-year outlook suggests 10-20% cumulative price increases across most markets, barring major economic disruptions such as significant interest rate changes or economic recession. This growth trajectory reflects Tasmania's underlying fundamentals including population growth, infrastructure investment, and lifestyle migration trends.
Ten-year projections depend heavily on migration patterns, infrastructure development, and national economic trends, but Tasmania will likely lag behind Sydney and Melbourne while outperforming many regional mainland markets. The state's relative affordability and lifestyle appeal should continue attracting interstate migrants seeking better value for money.
Compared to regional Victoria or coastal South Australia, Tasmania's growth may be steadier but potentially slower, though the state's unique island location and natural beauty provide distinct advantages for lifestyle buyers and tourism-focused investors. Climate change concerns may also favor Tasmania's temperate conditions over hotter mainland locations.
It's something we develop in our Australia property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Tasmania's property market in 2025 offers diverse opportunities for both owner-occupiers and investors, with stable growth and reasonable affordability compared to mainland capitals.
Whether you're drawn to Hobart's premium suburbs, Launceston's growth potential, or regional towns' affordability, understanding local market dynamics and future growth drivers will help you make informed property decisions in this unique island state.
Sources
- Australian Bureau of Statistics - Total Value of Dwellings
- BambooRoutes - Tasmania Real Estate Market
- Mortgage Choice - Tasmania Property Values
- Deltos Finance - Tasmania 2025 Projections
- Domain - House Price Report March 2025
- Your Mortgage - Median House Prices Australia
- RealEstate.com.au - Tasmania Growth Picks 2025
- 4one4 - Tasmania 2025 Real Estate Market
- Unconditional Finance - Tasmania Stamp Duty
- Which Real Estate Agent - Tasmania Fees