What is the average rent in Tasmania?

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

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Tasmania. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the Australian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Hobart, Launceston, and Devonport. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What's the average rent in Tasmania right now by property type?

As of September 2025, Tasmania's rental market shows clear distinctions between property types and their weekly rental rates.

Houses command the highest rents across the state, with median weekly rates of $560 in Hobart, $450 in Launceston, and $450 in regional areas. The statewide average for all house rentals sits at $490 per week, reflecting the strong demand for family homes across Tasmania.

Units and apartments offer more affordable options, with weekly rents ranging from $480 to $508 in Hobart and around $450 in Launceston. These property types particularly appeal to singles, couples, and young professionals seeking central locations without the maintenance responsibilities of a house.

It's something we develop in our Australia property pack.

Coastal and holiday properties present a mixed picture, with weekly rents between $400 and $550 depending on location and seasonal factors. These properties often command premium rates during peak tourist seasons but may experience lower occupancy rates during winter months.

How does rent vary between Hobart, Launceston, smaller towns, and rural areas?

Tasmania's rental market shows significant geographic variation, with Hobart commanding the highest rents as the state capital and economic center.

Hobart leads the market with median house rents at $560 per week and unit rents between $480 and $508 per week. The city's status as Tasmania's largest urban center, combined with its exceptionally tight 0.6% vacancy rate, drives these premium rental rates.

Launceston, as Tasmania's second-largest city, offers more affordable alternatives with median house rents at $450 per week and unit rents around $450 per week. The city provides similar urban amenities to Hobart but at approximately 20% lower rental costs.

Smaller towns and rural areas present the most affordable rental options, with weekly rents typically ranging from $300 to $430 for houses. West Coast mining towns like Queenstown offer exceptional value at around $300 per week for houses, though these locations may have limited amenities and employment opportunities outside of mining and tourism.

Regional Tasmania broadly averages $450 per week for houses, making it an attractive option for those seeking lower living costs while maintaining access to essential services and infrastructure.

What are the average rents for different property sizes and surfaces?

Property Size	Hobart ($/week)	Launceston ($/week)	Regional Areas ($/week)
Studio/1-bedroom	$350-400	$320-370	$280-350
2-bedroom unit	$420-500	$400-450	$350-420
3-bedroom house	$560	$450	$400-450
4+ bedroom house	$600-700	$500-600	$450-550
Coastal holiday unit	$500-600	N/A	$400-550

What's the typical total rent cost when you add management fees, council rates, and other expenses?

Property owners in Tasmania face several additional costs beyond the basic rental income, significantly impacting net returns on investment properties.

Property management fees typically range from 5% to 10% of rental income across Tasmania. For a $560 per week Hobart house, this translates to $28 to $56 weekly in management costs, covering tenant sourcing, rent collection, maintenance coordination, and property inspections.

Council rates represent a substantial fixed cost, with annual charges averaging $410 as a fixed component plus general rates calculated at 0.16 to 0.29 cents per dollar of capital value. Waste, fire, and stormwater charges add another $300 to $400 annually, depending on service levels and bin sizes.

Additional expenses include property insurance ($500 to $1,000 annually), letting fees (typically one week's rent for new tenancies), and ongoing maintenance costs. For a typical $560 per week Hobart rental property, total weekly expenses range from $75 to $110, reducing net rental income to approximately $450 to $485 per week.

These costs vary by location and property type, with regional properties often having lower council rates but potentially higher maintenance costs due to older housing stock and harsh weather conditions.

How do mortgage repayments compare to rental income for an average investment property?

Tasmania's investment property market presents challenging cash flow dynamics when comparing mortgage repayments to rental income.

The average Tasmanian mortgage repayment sits at $672 per week, while typical rental income ranges from $560 per week in Hobart to $450 per week in Launceston. This creates a negative cash flow situation for most standard investment properties, particularly in the capital city.

Owner-occupier loans average $458,641 with typical monthly repayments around $2,830 ($692 per week). When compared to Hobart's median rental income of $560 per week, investors face a weekly shortfall of approximately $132 before considering additional expenses like management fees and maintenance.

The situation improves significantly in high-yield regional areas like Queenstown, where $300 weekly rent on properties purchased at lower prices can generate positive cash flow. However, these locations require careful consideration of capital growth prospects and tenant demand sustainability.

Successful investment strategies in Tasmania typically require either substantial deposits to reduce borrowing costs, purchase of below-median-priced properties, or focus on high-yield regional markets where rental returns can cover or exceed mortgage repayments.

What are the differences in returns and risks when renting short-term versus long-term?

Tasmania's rental market offers distinct pathways through short-term and long-term rental strategies, each with specific return profiles and risk considerations.

Short-term rentals through platforms like Airbnb can generate higher daily rates, particularly in tourist areas during peak seasons. Coastal properties may achieve $150 to $250 per night during summer months, potentially exceeding long-term rental returns by 20% to 40% annually when occupancy rates remain strong.

However, short-term rentals involve significant operational complexities including frequent cleaning, guest management, seasonal occupancy fluctuations, and potential regulatory restrictions. Management costs typically range from 15% to 25% of gross income, compared to 5% to 10% for long-term rentals.

Long-term rentals provide steady, predictable income with minimal vacancy risk in Tasmania's tight rental market. Gross yields typically range from 4% to 7% across the state, with lower management intensity and more straightforward tax treatment for investors.

It's something we develop in our Australia property pack.

The choice between strategies depends on location, property type, and investor preferences for hands-on management versus passive income generation.

Can you give example rental prices for different types of properties?

Tasmania's diverse property market offers rental opportunities across various price points and locations, reflecting the island's geographic and economic diversity.

A central Hobart apartment, typically a modern 2-bedroom unit near the waterfront or CBD, commands $450 to $520 per week. These properties appeal to professionals and couples seeking urban convenience, with premium locations like Battery Point or Salamanca achieving the higher end of this range.

Suburban Hobart houses, particularly 3-bedroom detached homes in established neighborhoods like Glenorchy or Moonah, rent for the median rate of $560 per week. These properties attract families seeking more space while maintaining reasonable commuting distance to the city center.

Coastal holiday units in popular destinations like Bicheno or Coles Bay range from $400 to $550 per week for long-term rentals, though short-term holiday rates can significantly exceed these figures during peak summer months.

Rural properties in mining towns like Queenstown or Zeehan offer exceptional value at $250 to $300 per week for houses, though these markets require careful consideration of employment stability and long-term demand prospects.

Regional centers like Devonport or Burnie typically see house rentals between $400 and $480 per week, offering a middle ground between urban amenities and rural affordability.

What kind of renters are most common in Tasmania and what do they usually look for?

1. **Singles and Couples Under 35**: Form the largest rental demographic, typically seeking 1-bedroom apartments or small units in central locations. They prioritize affordability, proximity to employment, and access to social amenities.2. **Young Families**: Look for 3-bedroom suburban houses with yards, parking, and access to schools. They often value pet-friendly properties and prefer established neighborhoods with community infrastructure.3. **Professionals and Government Workers**: Seek quality apartments or townhouses near employment centers, particularly in Hobart's government district. They typically have stable incomes and prefer modern amenities and reliable heating systems.4. **Students**: Concentrate around University of Tasmania campuses, seeking affordable shared accommodation or studio apartments. They prioritize proximity to campus and public transport connectivity.5. **Retirees and Downsizers**: Often transition from larger family homes to smaller units or apartments, seeking low-maintenance properties in quiet areas with good healthcare access and community services.

What are the current vacancy rates in different areas and property types?

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.

Tasmania's rental market operates under extremely tight vacancy conditions, creating favorable circumstances for property investors and challenging conditions for tenants.

Hobart records an exceptionally low vacancy rate of 0.6% as of September 2025, well below the national average of 1.2% and significantly tighter than the 3% rate typically considered balanced. This scarcity drives competitive rental applications and consistent upward pressure on rental prices.

Launceston maintains a slightly higher but still tight vacancy rate of approximately 1.3%, providing marginally more options for tenants while still favoring landlords. The city's vacancy rate reflects its smaller scale and somewhat more diverse housing stock compared to Hobart.

Regional and rural areas generally experience vacancy rates under 2%, though specific mining towns and remote locations may see higher rates during economic downturns or seasonal employment fluctuations. These areas often depend on specific industries, making vacancy rates more volatile than urban centers.

The consistently low vacancy rates across property types indicate strong rental demand fundamentals, suggesting minimal risk of extended vacancy periods for well-located and properly priced rental properties throughout Tasmania.

What's the average gross and net rental yield, and how do they break down by property type?

Tasmania's rental yields vary significantly by location and property type, offering attractive returns particularly in regional markets.

Gross rental yields range from 4% to 9% across the state, with metropolitan areas generally delivering lower yields but greater capital growth prospects. Hobart houses and units typically achieve gross yields between 4% and 5%, reflecting higher property values relative to rental income.

Regional and rural properties offer the highest gross yields, with towns like Queenstown achieving up to 9% gross returns on houses. These exceptional yields reflect lower property purchase prices relative to rental income, though investors must consider limited capital growth potential and tenant market depth.

Net yields, calculated after deducting management fees, council rates, insurance, and maintenance costs, typically fall 1% to 1.5% below gross yields. For most properties, expenses consume approximately 15% to 20% of gross rental income, varying by property age, location, and management arrangements.

It's something we develop in our Australia property pack.

Coastal and holiday properties present variable yields between 4.5% and 7%, with performance heavily dependent on location, property quality, and management strategy for capturing seasonal demand premiums.

How have average rents and yields changed over the past five years and past year?

Tasmania's rental market has experienced substantial growth over the past five years, with acceleration continuing through 2025.

Over the five-year period from 2020 to 2025, statewide rents have increased by more than 30%, with Hobart house rents rising from $420 per week in 2020 to $560 per week in 2025, representing a 33% increase. This growth significantly exceeds national averages and reflects Tasmania's transformation from an affordable to a premium rental market.

The most recent 12-month period shows continued strong growth, with Hobart rents increasing 6.4% for houses and 6.8% for units. This growth rate substantially exceeds Australia's long-term average of 3% annual rent growth, indicating sustained demand pressure and supply constraints.

Rental yields have remained relatively stable throughout this period, with gross yields for houses maintaining ranges between 3.9% and 5.5%. While absolute rent increases have been substantial, property value growth has generally kept pace, preventing significant yield expansion in most markets.

Regional areas have experienced the most dramatic yield improvements, with some smaller towns seeing yields increase from 5% to 9% as rental demand strengthened while property prices remained relatively stable compared to metropolitan areas.

What's the forecast for rents and yields over the next one, five, and ten years?

Tasmania's rental market outlook suggests continued strength in the short term with gradual moderation over longer timeframes.

Short-term forecasts through 2026 predict sustained rent growth of 4% to 5% annually, supported by KPMG analysis indicating continued supply shortages and strong demand fundamentals. Hobart's exceptionally tight vacancy rates suggest minimal relief for tenants in the immediate future.

Medium-term projections for 2025 to 2030 anticipate rent growth moderating to 2% to 4% annually as supply constraints gradually ease through new construction and potential policy interventions. However, Tasmania's geographic constraints and planning restrictions may limit the pace of supply response.

Long-term forecasts through 2035 suggest rental growth will align more closely with national averages, assuming successful policy responses to current housing shortages. Yields may compress in metropolitan areas as property values catch up to rental growth, while regional areas could maintain higher yields if supply remains constrained.

Compared to similar regional markets in Australia and New Zealand, Tasmania's rental market shows stronger fundamentals than many mainland regional centers, supported by lifestyle migration, government employment stability, and tourism industry growth. However, yield compression toward national averages appears inevitable as the market matures and attracts increased investment attention.

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.

Sources

1. Real Estate Australia - Rental Prices Rise in Hobart
2. Real Estate Australia - Growth Momentum Builds
3. BambooRoutes - Tasmania Real Estate Market
4. Savings.com.au - Tasmania Rental Yield
5. Rent.com.au - March 2025 Rental Market Snapshot
6. Your Mortgage - Highest Rental Yields
7. Real Estate Australia - Cheaper to Buy Than Rent
8. KPMG - Residential Property Market Outlook
9. CoreLogic - Rental Review Report
10. Domain - Rental Report March 2025