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Hobart's property market is currently experiencing a recovery phase with average house prices sitting at $714,691 as of September 2025. The average price per square meter for houses hovers around $1,087, while apartments and townhouses remain notably more affordable in the mid-$500,000s range. Recent market data shows modest growth after a correction period that began in March 2022, with forecasts suggesting continued upward momentum through 2030.
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Hobart's property market offers opportunities across all price segments, with houses averaging $714,691 and units at $552,352. Premium suburbs like North Hobart command nearly $1 million while budget-friendly areas like Claremont start around $517,000.
The market has shown remarkable resilience with 39% growth over five years, and forecasts suggest continued appreciation through 2030, making it an attractive destination for both investors and owner-occupiers.
| Property Type | Average Price (Sept 2025) | 5-Year Growth |
|---|---|---|
| Houses | $714,691 | +39% |
| Apartments/Units | $552,352 | +35% |
| Townhouses | $555,609 | +37% |
| Premium Suburbs (North Hobart) | $978,000 | +45% |
| Budget Areas (Claremont) | $517,000 | +40% |
| Emerging Areas (Kingston) | $743,000 | +42% |
| Hobart vs National Average | 15% below | Above average growth |
What's the current average price per square meter in Hobart?
The current average price per square meter in Hobart sits at approximately $1,087 for houses as of September 2025.
This figure represents comprehensive market data across the greater Hobart area and has remained relatively stable compared to recent years. New build costs show much wider variation, ranging from $620 to $3,900 per square meter depending on materials, finishes, and location specifics.
The $1,087 per square meter average reflects established housing stock across various suburbs, from budget-friendly areas to premium waterfront locations. This pricing places Hobart competitively within the Australian market, sitting well below Sydney's $2,466 per square meter and Melbourne's $1,811 per square meter.
For context, this square meter pricing translates to median house values around $714,691 when considering typical Hobart property sizes. The consistency in per-square-meter pricing over recent periods indicates market stability despite broader economic fluctuations.
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How do prices differ between houses, apartments, and townhouses?
Houses command the highest prices in Hobart's market, with apartments and townhouses offering more affordable entry points.
| Property Type | Average Price (Sept 2025) | Typical Features |
|---|---|---|
| Houses | $714,691 | 3-4 bedrooms, yard, garage |
| Apartments/Units | $552,352 | 1-2 bedrooms, balcony, amenities |
| Townhouses | $555,609 | 2-3 bedrooms, small yard, garage |
| Luxury Houses (premium suburbs) | $900,000+ | 4+ bedrooms, views, heritage features |
| Budget Units | $425,000+ | 1 bedroom, older buildings |
| New Townhouses | $650,000+ | Modern design, energy efficient |
| Waterfront Properties | $1,200,000+ | River/ocean views, premium locations |
What are the most expensive suburbs and what makes them so costly?
North Hobart leads Hobart's premium market with median house prices reaching $978,000 and impressive annual growth of 22.2% in 2024.
Battery Point and Sandy Bay represent the traditional high-end markets, commanding premium prices due to their historic architecture, waterfront positions, and proximity to Salamanca Place. These suburbs attract buyers seeking heritage charm combined with urban convenience, featuring heritage buildings, boutique cafes, and easy CBD access.
Bellerive has emerged as another premium location with median prices at $841,250, driven by its river views, beach access, and ferry connections to the city. Recent stadium upgrades and infrastructure investments have increased attention and demand in this area.
Several factors drive these premium prices: scenic water or mountain views provide lifestyle appeal that commands significant premiums. Proximity to entertainment districts, quality dining, and top schools creates convenience value. Heritage buildings and ongoing gentrification add character and investment appeal. Finally, lifestyle infrastructure investments like ferry services and recreational facilities enhance long-term desirability.
Which neighborhoods are upcoming and expected to grow in value soon?
Kingston stands out as Hobart's most promising emerging area with current median prices at $743,000 and strong development momentum.
- Kingston: Benefits from steady growth trajectory, upcoming development projects, and potential sports infrastructure investments that will drive long-term appreciation
- Lenah Valley: Attracts families and retirees seeking leafy, established suburb characteristics while maintaining close city proximity
- Brighton: Offers family-friendly environment with good infrastructure at relatively affordable entry points, showing consistent long-term growth patterns
- Moonah: Provides excellent infrastructure access and family amenities while remaining below premium suburb pricing, indicating strong upside potential
- Howrah: Eastern shore location with improving ferry connections and lifestyle appeal that's attracting increased buyer interest
Where are the most budget-friendly areas to buy right now?
Claremont offers the most accessible entry point with median prices at $517,000, despite impressive 40.1% growth over five years.
Brighton provides another budget-friendly option at $552,500 median price, showing exceptional 55.4% growth over five years, indicating strong value recognition in previously overlooked areas. Glenorchy, Rokeby, Risdon Vale, and Mornington consistently trade below Hobart metro averages while maintaining strong demand fundamentals.
These areas appeal to first-home buyers and investors due to their combination of affordability and growth potential. Many feature good public transport links, developing infrastructure, and increasing amenities that support long-term value appreciation.
Budget-friendly doesn't mean poor investment potential in Hobart's case - these suburbs have delivered some of the strongest percentage gains over recent years, suggesting smart money recognizes their value proposition before broader market appreciation occurs.
How have prices changed compared to five years ago?
Hobart's property market has delivered exceptional performance over the past five years, with median house prices surging from approximately $514,000 in 2020 to $714,691 in 2025.
This represents an impressive 39% gain over the five-year period, significantly outperforming most Australian capital cities. The growth reflects Hobart's transition from an overlooked market to a recognized investment destination, driven by lifestyle migration, infrastructure development, and relative affordability compared to mainland capitals.
Different property types have shown varying appreciation rates: houses led with the strongest gains, while apartments and townhouses delivered solid but slightly lower returns. Even budget suburbs like Claremont and Brighton achieved 40%+ appreciation, demonstrating broad-based market strength rather than isolated premium area gains.
This five-year performance period included the COVID-19 pandemic boost, record low interest rates, and increased interstate migration to Tasmania. The sustained nature of gains across all price segments indicates fundamental demand-supply dynamics rather than speculative bubbles.
How have prices changed compared to one year ago?
Hobart's property market has shown modest but positive movement over the past 12 months, with house prices gaining approximately 1.0-2.2%.
Units have remained relatively flat or slightly declined, reflecting broader apartment market challenges across Australia. This moderate growth represents a stabilization phase following the market peak in March 2022 and subsequent 10-12% correction period.
The recent performance indicates market maturity and buyer confidence returning after the correction period. Interest rate stabilization and improving economic conditions have supported this modest recovery, while avoiding the overheated conditions that led to the 2022 peak.
Current growth rates suggest sustainable appreciation rather than speculative momentum, providing a healthier foundation for continued long-term gains. This measured pace appeals to both owner-occupiers and investors seeking stable market conditions.
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What's the forecast for property prices in one year, five years, and ten years?
Hobart's property market forecasts suggest continued appreciation across all timeframes, with 2026 median house prices expected between $759,000 and $818,000.
This represents 3-7% annual growth for the next year, driven by anticipated interest rate cuts, infrastructure investments, and continued lifestyle migration to Tasmania. The moderate growth rate reflects market maturity while maintaining upward momentum.
Five-year forecasts project median house prices reaching $1.01 million to $1.26 million by 2030, representing substantial 80%+ growth from current levels. This optimistic outlook assumes continued population growth, supply constraints, and Hobart's increasing recognition as a lifestyle destination.
Long-term drivers supporting these forecasts include ongoing infrastructure development, limited land supply in desirable areas, continued interstate migration seeking lifestyle and affordability, and Hobart's unique position as Australia's second-oldest capital with increasing tourism and cultural appeal.
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What are some concrete examples of recent purchase prices for different property types?
Recent Hobart sales data from August 2025 provides clear pricing benchmarks across different property categories.
| Property Type | Location | Recent Sale Price |
|---|---|---|
| 4-bedroom house | Prospect | $945,000+ |
| Townhouse | Kings Meadows | $650,000+ |
| 1-bedroom unit | Molle Street | $425,000+ |
| 2-bedroom apartment | Bathurst Street | $795,000+ |
| Family home | Kingston | $743,000 (median) |
| Premium house | North Hobart | $978,000 (median) |
| Budget house | Claremont | $517,000 (median) |
What is the total cost of buying when you include fees, taxes, and stamp duty?
Stamp duty represents the largest additional cost when buying property in Hobart, calculated at $27,810 plus $4.50 per $100 for homes over $725,000.
For a typical $600,000 property, buyers pay approximately $22,000 in stamp duty, while a $700,000 property incurs around $27,000. Additional costs include conveyancing fees ($1,800-$3,000), loan application fees ($400-$1,000), building inspections ($500-$800), and various government fees.
First-home buyers receive significant advantages with full stamp duty exemption for properties under $750,000. Downsizers and pensioners may qualify for up to 50% stamp duty concessions, making Hobart particularly attractive for these buyer segments.
Total buying costs typically add 4-6% to the purchase price for most buyers, though first-home buyer concessions can reduce this significantly. Budgeting for these additional costs is essential for accurate financial planning and avoiding purchase delays.
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How much would a typical mortgage cost for an average property in Hobart?
A standard mortgage for Hobart's median house price of $714,691 costs approximately $4,100-$4,200 per month based on current market conditions.
This calculation assumes a 30-year loan term with 80% loan-to-value ratio and variable interest rate around 5.3% as of September 2025. The monthly payment includes principal and interest but excludes property insurance, council rates, and maintenance costs that owners must budget separately.
Actual mortgage costs vary significantly based on deposit size, lender choice, credit profile, and fixed versus variable rate selection. Buyers with larger deposits or excellent credit histories may secure more favorable rates, reducing monthly payments.
For investment properties, rental income typically covers 60-80% of mortgage payments in Hobart's market, requiring investors to budget for negative gearing or additional cash flow to cover shortfalls and expenses.
What are the smartest choices today if you want to live there, rent out short term, rent out long term, or buy to resell later?
Different investment strategies require different suburb selections in Hobart's diverse market landscape.
- Owner-occupiers should focus on Kingston, Lenah Valley, Bellerive, and Howrah for their family-friendly environments, quality services, and lifestyle amenities that enhance daily living
- Short-term rental investors achieve best returns in Battery Point, Salamanca, and Sandy Bay due to their tourist appeal, heritage character, and proximity to major attractions
- Long-term rental investors find consistent tenant demand in Moonah, Glenorchy, Brighton, and Kingston, offering higher rental yields and stable tenant populations
- Renovation and resale investors should target emerging areas like Kingston, Brighton, and Moonah where planned infrastructure improvements will drive future value appreciation
- Luxury investors can focus on established premium areas like North Hobart and Battery Point for capital growth potential and prestige positioning
How does the Hobart market compare with other similar-sized cities in Australia?
Hobart's property market performance significantly outpaces most comparable Australian cities, particularly in growth trajectory and affordability metrics.
| City | Median House Price | 5-Year Growth |
|---|---|---|
| Hobart | $714,691 | +39% |
| Darwin | $641,997 | +3.1% |
| Adelaide | $783,705 | +25% |
| Brisbane | $801,449 | +22% |
| Perth | $712,000 | +18% |
| Canberra | $946,000 | +15% |
| Melbourne | $1,032,903 | +12% |
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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.
Hobart's property market presents compelling opportunities across all buyer segments, from first-home buyers to seasoned investors seeking portfolio diversification.
With median house prices at $714,691 and forecasts suggesting continued appreciation through 2030, the market offers both affordability compared to mainland capitals and strong growth potential driven by lifestyle migration and infrastructure development.
Sources
- Domain - Housing Affordability Report
- RealEstate.com.au - Building Costs
- Property Update - Median Property Prices
- Your Mortgage - House Prices Australia
- OpenAgent - Hobart Property Market
- Domain - House Price Report March 2025
- OpenAgent - Best Suburbs Hobart
- Canstar - Best Suburbs Hobart
- BambooRoutes - Hobart Price Forecasts
- Stryve - Stamp Duty Australia 2025