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Yes, the analysis of Hobart's property market is included in our pack
Property prices in Hobart are experiencing a modest recovery after a challenging period.
As we reach mid-2025, Hobart's property market is showing signs of life following a 12% decline from its March 2022 peak. The market has stabilized and begun to turn positive, with annual growth now sitting at 0.5% to 1.0% as of June 2025.
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Property prices in Hobart are starting to rise again after hitting bottom, with median house prices now at $715,000 and showing 2.58% annual growth.
Interest rate cuts in 2025 and tight housing supply are expected to push prices up by 3% to 7% through the remainder of the year.
| Key Metric | Current Value (June 2025) | Annual Change |
|---|---|---|
| Median House Price | $715,000 | +2.58% |
| Median Unit Price | $560,000 | +0.08% |
| Days on Market | 52 days | Up from 32 days |
| Rental Vacancy Rate | 0.6-0.9% | Record lows |
| Price from 2022 Peak | -11.1% | Recovery underway |
| 5-Year Growth | +29% | Strong long-term gains |
| 2025 Forecast | 3-7% growth | Positive outlook |
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.
What are the current property prices in Hobart as of June 2025?
Hobart's property prices have stabilized and begun to recover from their earlier decline.
The median house price in Hobart sits at approximately $715,000 as of June 2025, reflecting a 2.58% increase from the same time last year. This represents a recovery from the trough experienced in 2023, when prices had fallen significantly from their March 2022 peak of around $748,000.
Unit prices in Hobart are currently at a median of $560,000, showing minimal growth of just 0.08% over the past year. The combined median dwelling price for all property types is approximately $670,000, making Hobart the second most affordable capital city in Australia after Darwin.
Different sources report slightly varying figures, with some showing the median dwelling value at $664,462 and others at $672,000, but all confirm that Hobart remains substantially more affordable than Sydney, Melbourne, and Brisbane. The market is characterized by a relatively small gap between house and unit prices compared to other capitals.
Despite current prices being 11.1% below their March 2022 peak, they remain approximately 27% to 29% above pre-pandemic levels, demonstrating the significant gains made during the boom years.
How much have property prices changed in Hobart over the past 12 months?
Property prices in Hobart have shown modest recovery over the past 12 months after a period of decline.
Houses in Hobart have increased by 2.58% year-on-year as of June 2025, marking a turnaround from the negative growth experienced in 2023 and early 2024. This represents an average increase of about $18,000 on the median house price.
The unit market has underperformed significantly compared to houses, with prices rising by just 0.08% annually in Hobart. This minimal growth highlights the preference for houses over units in the current market conditions.
| Property Type | 12-Month Change | Quarterly Change | Monthly Change |
|---|---|---|---|
| Houses | +2.58% | +1.4% | +1.1% |
| Units | +0.08% | -1.1% | -0.5% |
| Combined Dwellings | +0.5% to 1.0% | +0.9% | +0.5% |
| High-End Areas | +11% | N/A | N/A |
| Growth Suburbs | +5% to 10% | Varies | Positive |
The recovery has been broad-based across different areas, with some suburbs performing exceptionally well. High-end areas like Sandy Bay have seen median prices exceed $1.4 million, while growth suburbs like Glenorchy and Moonah continue to attract strong interest.
Overall, the combined dwelling values have risen between 0.5% and 1.0% annually, depending on the data source, indicating a market that has found its floor and is beginning to climb again.
Which Hobart suburbs are experiencing the fastest price growth in 2025?
Several Hobart suburbs are showing exceptional growth rates, particularly those offering affordability and lifestyle appeal.
South Hobart leads the pack with an extraordinary 54.3% annual growth, pushing median prices to $972,000. This dramatic increase reflects the suburb's desirability, though the growth rate may be influenced by a small sample size of sales.
Other standout performers include Old Beach with 13.8% growth, Rokeby at 11.1%, and Granton showing 20.4% annual increases. These suburbs are benefiting from their relative affordability compared to inner-city areas.
| Suburb | Median Price | Annual Growth | Key Attraction |
|---|---|---|---|
| South Hobart | $972,000 | 54.3% | Inner-city lifestyle |
| Granton | $915,000 | 20.4% | Waterfront location |
| Old Beach | $740,000 | 13.8% | Beach proximity |
| Rokeby | $646,000 | 11.1% | Affordability |
| Moonah | $613,500 | 8-10% | Cultural hub |
| Glenorchy | $612,500 | 7-9% | Infrastructure improvements |
| Blackmans Bay | $743,000 | 5-8% | Family-friendly |
Moonah and Glenorchy are emerging as cultural and lifestyle hubs, attracting both first-home buyers and investors with median prices around $613,000 and strong rental returns. It's something we develop in our Australia property pack.
Kingston, Margate, and Blackmans Bay are also gaining popularity due to infrastructure developments, including the planned Tasmania Devils AFL high-performance center in the Kingborough Council area.
What will mortgage rates look like for the rest of 2025?
Interest rates are expected to decline further throughout 2025, providing relief to homebuyers and boosting market activity.
The Reserve Bank of Australia has already cut interest rates twice in 2025, with the cash rate dropping from 4.35% in late 2024. Most economists expect an additional 2 to 3 rate cuts throughout the remainder of 2025, which could bring rates down by a total of 0.75% to 1.0%.
Each 0.25% rate cut translates to approximately $90 per month in savings on a typical mortgage. If the RBA delivers four cuts in total for 2025, borrowers could save nearly $350 per month on their mortgage repayments.
Current mortgage rates for owner-occupiers are hovering around 6.0% to 6.5%, down from peaks of over 7% in 2024. By the end of 2025, these could fall to around 5.5% to 6.0% if predictions materialize.
The impact on Hobart's property market is already visible, with the February 2025 rate cut being cited as a key factor in the market's positive turn. Lower rates are improving borrowing capacity and buyer sentiment, which is expected to accelerate price growth in the second half of 2025.
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What are the property price forecasts for Hobart through 2026?
Property experts predict steady growth for Hobart's market through 2026, with most forecasts ranging from modest to moderate increases.
KPMG's Residential Property Market Outlook forecasts solid gains for 2025, predicting house prices to grow by up to 5.7% and unit prices by 5.3%. This represents the more optimistic end of predictions.
PropTrack provides a more conservative forecast of 0% to 3% growth for 2025, while other major banks and research firms predict growth between 2% and 7%. The consensus appears to be around 3% to 5% growth for the remainder of 2025.
For 2026, if current trends continue and economic conditions remain favorable, Hobart could see similar growth rates of 3% to 7% annually. This would put the median house price between $737,000 and $765,000 by the end of 2025, and potentially $759,000 to $818,000 by the end of 2026.
Key factors that could influence these forecasts include the trajectory of interest rates, population growth, housing supply constraints, and the broader economic environment. The planned infrastructure projects, including the new AFL stadium, could provide additional upward pressure on prices.
How is housing supply affecting Hobart property prices in 2025?
Tight housing supply continues to be a major driver of price growth in Hobart's property market.
Tasmania is significantly underperforming on its construction goals, which means demand for existing homes remains strong. New housing developments are restricted by Hobart's geographical constraints and limited land availability, keeping supply tight despite government efforts to increase construction.
Current market listings in Hobart were 46% above the five-year average as of late 2024, offering more choice to buyers. However, this increase in listings hasn't been sufficient to meet demand, particularly in popular suburbs.
The vacancy rate in Hobart remains at record lows between 0.6% and 0.9%, well below the healthy benchmark of 3.0%. This indicates extremely tight rental supply, which translates into upward pressure on both rental and purchase prices.
Major development projects worth $1.1 billion are set to commence in 2025, including the Macquarie Point Waterfront Redevelopment ($300 million) and Macquarie Wharf Redevelopment ($240 million). While these will eventually add to supply, their immediate impact is limited.
Most new supply consists of detached houses rather than high-density apartments, as feasibility and approval issues continue to hamper apartment development. This mismatch between supply type and affordability needs contributes to ongoing price pressures.
What types of properties are seeing the biggest price increases?
Houses are significantly outperforming units in Hobart's current market recovery.
Detached houses have seen annual price growth of 2.58%, while units have barely moved with just 0.08% growth. This represents one of the largest disparities between house and unit performance among all Australian capital cities.
- Family Homes in Growth Suburbs: Properties in areas like Glenorchy, Moonah, and Brighton are experiencing strong demand due to their affordability and improving infrastructure, with prices rising 7-10% annually.
- Waterfront Properties: Coastal and river-view properties continue to command premium prices, with areas like Granton seeing 20% annual growth due to their lifestyle appeal.
- Properties with Outdoor Space: Homes featuring gardens, terraces, or substantial outdoor areas are particularly sought after, reflecting post-pandemic preferences for space and lifestyle.
- Tech-Smart, Energy-Efficient Homes: Modern properties with smart technology features and energy-saving systems are attracting premium prices from environmentally conscious buyers.
- Character Homes in Established Areas: Well-maintained period homes in suburbs like Battery Point and South Hobart continue to see strong appreciation due to their scarcity and charm.
The gap between house and unit values has widened substantially, though Hobart still maintains the smallest differential between the two property types of any Australian capital at around 23%.
We made this infographic to show you how property prices in Australia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It's an easy way to spot where you might get the best value for your money. We hope you like it.
How do Hobart property prices compare to 5 years ago?
Hobart's property market has experienced significant growth over the past five years despite recent corrections.
The median house price in Hobart was approximately $555,754 in 2020, compared to $715,000 in June 2025—representing a rise of nearly 29% over five years. This growth occurred despite the market falling 11.1% from its March 2022 peak.
Many Hobart suburbs have seen extraordinary growth since 2020. Dodges Ferry leads with an 85% increase, while Rokeby has seen prices rise by 84%. These dramatic increases reflect the surge in demand during the pandemic years when interstate buyers flocked to Tasmania.
Inner Hobart dwelling prices increased by 34.2% over the decade to 2022, showing consistent long-term appreciation. The five-year growth rate of 29% translates to an average annual increase of about 5.2%, outperforming many traditional investment returns.
The current market correction has brought prices back to more sustainable levels while still maintaining most of the gains achieved during the boom. Properties purchased in 2020 remain significantly ahead despite the recent downturn.
This five-year performance demonstrates Hobart's resilience and long-term growth potential, particularly for investors who can weather short-term fluctuations. The detailed analysis of these trends is covered in our Australia property pack.
What major developments could impact Hobart property prices?
Several significant infrastructure projects and policy changes are set to influence Hobart's property market in the coming years.
The most significant development is the proposed world-class entertainment precinct, including a roofed stadium essential for Tasmania's new AFL team, the Tasmania Devils. This project is expected to bring substantial economic benefits, boosting local employment and housing demand.
| Development/Policy | Expected Impact | Timeline |
|---|---|---|
| AFL Stadium & Entertainment Precinct | Major boost to employment and housing demand | Planning underway, completion by 2029 |
| Macquarie Point Waterfront Redevelopment | $300M investment reshaping waterfront | Commencing 2025 |
| Airport International Expansion | Increased tourism and migration | Ongoing through 2026 |
| Tasmania Devils High Performance Centre | Boost to Kingborough suburbs | 2025-2027 |
| Federal "Super for Houses" Policy | Could increase prices by 10.3% | If implemented in 2025 |
| Social Housing Investment | Moderate supply increase | Ongoing |
| NBL JackJumpers Success | Increased city profile and appeal | Ongoing positive impact |
Hobart Airport's expansion for international flights will significantly boost the city's connectivity and appeal to both tourists and potential residents. This improved accessibility could drive increased interstate and international investment.
The Federal Government's controversial "Super for Houses" policy, if implemented, could increase Hobart's median house price by approximately $68,000 (a 10.3% rise), though this would worsen affordability for many buyers.
How affordable are Hobart properties compared to other Australian cities?
Hobart remains one of Australia's most affordable capital cities, offering relative value compared to the mainland markets.
With a median house price of $715,000, Hobart is the second most affordable capital city after Darwin. This is significantly below Sydney ($1.48 million), Melbourne ($940,000), and Brisbane ($1 million), making it attractive for interstate buyers seeking value.
The median dwelling price in Hobart of $670,000 is approximately 44% lower than Sydney's median and 29% lower than Brisbane's. This affordability gap has attracted many mainland buyers over recent years, though the differential has narrowed due to Hobart's strong growth.
Despite being relatively affordable compared to other capitals, Hobart faces significant local affordability challenges. The city has high price-to-income ratios due to Tasmania's lower average wages, making homeownership difficult for many local residents.
Hobart maintains the smallest gap between house and unit prices (23%) of any Australian capital, making units a less attractive affordability option compared to other cities where the differential can exceed 40%.
For investors and interstate buyers, Hobart represents good value, particularly in growth suburbs where prices remain below $650,000. However, local first-home buyers continue to face affordability constraints despite the relative national positioning.
What do the experts predict for Hobart's property market beyond 2025?
Long-term projections for Hobart's property market suggest continued growth, with the potential for significant appreciation by 2030.
If recent growth trends continue at historical averages of 5-7% annually, Hobart's median house price could reach $1.011 million by 2030, potentially surpassing Melbourne's current levels. This projection assumes steady economic conditions and continued population growth.
Specific suburbs are expected to see even stronger growth. Dodges Ferry could see median prices rise to $1.27 million by 2030, while Rokeby could reach $1.16 million if current trends persist. These projections reflect the ongoing transformation of formerly affordable suburbs.
Analysts cite several factors supporting long-term growth: Hobart's lifestyle appeal, relative affordability compared to mainland capitals, limited land supply, and major infrastructure investments. The city's growing reputation as a cultural and lifestyle destination continues to attract both domestic and international interest.
However, experts also highlight potential headwinds including affordability constraints for local buyers, dependence on interstate migration, climate change risks, and the need for economic diversification beyond tourism and government employment.
Most analysts recommend Hobart as offering solid long-term investment potential, particularly for those who can take a patient approach and weather short-term market fluctuations. The combination of lifestyle factors and relative value continues to underpin positive sentiment.
Conclusion
Property prices in Hobart are going up, marking a clear recovery from the market downturn of 2022-2023. Yes, the market is experiencing positive momentum as we reach mid-2025.
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.
The evidence is clear: Hobart's property market has turned the corner with house prices rising 2.58% annually and multiple suburbs showing double-digit growth. Interest rate cuts are providing additional fuel for the recovery, with most experts predicting 3-7% growth through 2025 and beyond.
While Hobart remains 11.1% below its 2022 peak, the market's fundamentals remain strong with record-low vacancy rates, restricted supply, and major infrastructure projects on the horizon. For investors and homebuyers willing to take a medium to long-term view, Hobart's combination of relative affordability and growth potential makes it an attractive proposition in Australia's property landscape.
Sources
- Real Estate Australia - Hobart House Prices Analysis
- CoreLogic - Housing Market Recovery Report
- Property Update - Australian Property Market Predictions 2025
- OpenAgent - Best Hobart Investment Suburbs 2025
- API Magazine - Tasmania Property Market Analysis
- Savings.com.au - Hobart Suburbs Market Report
- 4one4 Property Co - Tasmania Real Estate Market 2025
- BambooRoutes - Hobart Property Price Forecasts
- PRD - Hobart Property Market Update 2025
- Which Real Estate Agent - Hobart Market Trends