What are the price trends and forecasts in Hobart right now? (January 2026)

If you're looking for current property prices in Hobart, you're in the right place because we constantly update this blog post with fresh data.

Hobart's property market has shifted from correction into steady recovery, with detached houses leading the way and well-located units catching up.

And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Hobart.

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 Hobart. If you’d like to learn more about us, you can check our presentation page.

What are the current property price trends in Hobart as of 2026?

What is the average house price in Hobart as of 2026?

As of early 2026, the average property price in Hobart sits at roughly A$725,000 for all dwelling types combined, which translates to about US$486,000 or €413,000 at current exchange rates.

Breaking this down by property type, detached houses in Hobart average around A$760,000 (US$509,000 or €433,000), while units and apartments come in at approximately A$560,000 (US$375,000 or €319,000).

When looking at price per square meter, Hobart houses average around A$4,500 per square meter, units sit higher at about A$6,200 per square meter (because they're concentrated in prime inner-city locations), and townhouses fall in between at roughly A$5,300 per square meter.

For most buyers in Hobart, the realistic price range that covers about 80% of property purchases runs from approximately A$450,000 to A$950,000 (US$300,000 to US$640,000, or €255,000 to €540,000), depending on property type and location.

How much have property prices increased in Hobart over the past 12 months?

Over the past 12 months, Hobart property prices have increased by approximately 6% across all dwelling types, marking a clear shift from the correction phase into recovery.

The growth hasn't been uniform across property types: detached houses in Hobart have grown faster at around 6% to 8%, while units and apartments have seen more modest increases of 2% to 5% over the same period.

The single most significant factor behind this price movement has been improved borrowing conditions, as the Reserve Bank of Australia's interest rate cuts in 2025 boosted buyer confidence and purchasing power across Hobart's property market.

Which neighborhoods have the fastest rising property prices in Hobart as of 2026?

As of early 2026, the three Hobart neighborhoods with the fastest rising property prices are Lindisfarne on the eastern shore, Moonah in the inner-north, and Glenorchy in the northern corridor.

Lindisfarne has seen annual price growth of approximately 8% to 10%, while Moonah and Glenorchy have recorded gains of around 7% to 9%, outpacing the broader Hobart average by several percentage points.

The main demand driver in these neighborhoods is the combination of relative affordability compared to premium suburbs like Sandy Bay, good lifestyle amenities, and improving transport connections, particularly for northern suburbs benefiting from the Bridgewater Bridge completion timeline.

By the way, you will find much more detailed price ranges across neighborhoods in our property pack covering the real estate market in Hobart.

We have made this infographic to give you a quick and clear snapshot of the property market in Australia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.

Which property types are increasing faster in value in Hobart as of 2026?

As of early 2026, the ranking of Hobart property types by value appreciation is: detached houses leading at the top, followed by townhouses and villa units, then apartments and units in third place.

Detached houses in Hobart have appreciated by approximately 6% to 8% over the past year, making them the clear top performer among all residential property types in the city.

The main reason houses are outperforming in Hobart is the chronic shortage of family homes near jobs and schools, combined with limited land supply in established suburbs, which creates persistent upward pressure on prices.

Finally, if you're interested in a specific property type, you will find our latest analyses here:

• How much do properties cost in Hobart?
• How much should you pay for a house in Hobart?
• How much should you pay for an apartment in Hobart?
• How much should you pay for a studio in Hobart?

What is driving property prices up or down in Hobart as of 2026?

As of early 2026, the three main factors driving Hobart property prices are interest rate movements affecting borrowing capacity, extremely tight rental supply pushing investor demand, and constrained housing construction limiting new stock.

The single factor with the strongest upward pressure on Hobart property prices is the combination of low rental vacancy rates (just 0.6%) and rising rents, which makes investment properties attractive and keeps buyer competition strong across most suburbs.

If you want to understand these factors at a deeper level, you can read our latest property market analysis about Hobart here.

What is the property price forecast for Hobart in 2026?

How much are property prices expected to increase in Hobart in 2026?

As of early 2026, property prices in Hobart are expected to increase by approximately 3% over the calendar year, representing a continuation of the steady recovery trend rather than a boom.

The range of forecasts from different analysts for Hobart in 2026 spans from about 1.8% (ANZ's conservative estimate) to around 4% to 7% (SQM Research's optimistic scenario), with most major banks clustering around 2% to 3.6%.

The main assumption underlying most price increase forecasts for Hobart is that interest rates will continue to fall modestly through 2026, improving borrowing power without triggering a surge in new supply or a dramatic population influx.

We go deeper and try to understand how solid are these forecasts in our pack covering the property market in Hobart.

Which neighborhoods will see the highest price growth in Hobart in 2026?

As of early 2026, the Hobart neighborhoods expected to see the highest price growth are the northern corridor suburbs like Glenorchy, Moonah, and Claremont, along with eastern shore locations including Lindisfarne, Bellerive, and Howrah.

These top-performing neighborhoods are projected to see price growth of approximately 5% to 8% in 2026, outpacing the citywide average by 2 to 4 percentage points.

The primary catalyst driving expected growth in these neighborhoods is the improved transport connectivity from the Bridgewater Bridge completion (expected mid-2026), which reduces commute times and lifts buyer confidence in northern suburbs.

One emerging neighborhood in Hobart that could surprise with higher-than-expected growth is Berriedale, which combines relative affordability with proximity to the new bridge route and access to waterfront lifestyle amenities.

By the way, we've written a blog article detailing what are the current best areas to invest in property in Hobart.

What property types will appreciate the most in Hobart in 2026?

As of early 2026, detached houses in family-friendly suburbs are expected to appreciate the most in Hobart, followed closely by townhouses and villa units in walkable locations near services.

The projected appreciation for top-performing detached houses in Hobart is approximately 4% to 6% for 2026, with well-located townhouses expected to achieve similar or slightly higher gains in sought-after pockets.

The main demand trend driving appreciation for houses is the persistent shortage of suitable family homes combined with Hobart's limited developable land, which keeps competition intense among buyers with children seeking good school zones.

Units and apartments in Hobart are expected to underperform relative to houses in 2026 because they face more competition from new construction in some pockets, and investor demand remains selective about building quality and location.

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.

How will interest rates affect property prices in Hobart in 2026?

As of early 2026, interest rate expectations are providing a modest tailwind for Hobart property prices, as most analysts anticipate one to two further RBA rate cuts through the year, which should improve buyer affordability and confidence.

The current RBA cash rate sits at 3.60%, and major banks expect it to fall to around 3.10% to 3.35% by late 2026, which would translate to lower mortgage rates and increased borrowing capacity for Hobart buyers.

In practical terms, a 1% reduction in interest rates typically allows Hobart buyers to borrow roughly 10% more, which has historically translated to price increases of 5% to 8% over the following 12 to 18 months in this market.

You can also read our latest update about mortgage and interest rates in Australia.

What are the biggest risks for property prices in Hobart in 2026?

As of early 2026, the three biggest risks for Hobart property prices are an unexpected reversal in interest rates if inflation rises again, tighter lending restrictions from APRA affecting borrower access, and any significant negative outcome regarding major projects like the Macquarie Point development.

The single risk with the highest probability of materializing in Hobart is a stalling of price growth if interest rates remain higher for longer than expected, which would cap borrowing capacity and dampen buyer enthusiasm in an already affordability-stretched market.

We actually cover all these risks and their likelihoods in our pack about the real estate market in Hobart.

Is it a good time to buy a rental property in Hobart in 2026?

As of early 2026, Hobart presents a reasonably good opportunity for rental property investment, provided buyers focus on quality, well-located stock that can generate steady cashflow rather than speculating on rapid price gains.

The strongest argument in favor of buying a rental property in Hobart now is the extremely tight rental market, with vacancy rates at just 0.6% and annual rent growth exceeding 7%, which supports strong yields and reliable tenant demand.

The strongest argument for waiting before buying is that price growth forecasts remain modest at around 3%, meaning buyers who overpay or choose poorly located properties may find themselves underwater if market conditions soften unexpectedly.

If you want to know our latest analysis (results may differ from what you just read), you can read our assessment on whether now is a good time to buy a property in Hobart.

You'll also find a dedicated document about this specific question in our pack about real estate in Hobart.

Where will property prices be in 5 years in Hobart?

What is the 5-year property price forecast for Hobart as of 2026?

As of early 2026, cumulative property price growth in Hobart over the next five years is expected to reach approximately 25%, meaning a property worth A$725,000 today could be valued around A$900,000 by January 2031.

The range of 5-year forecasts spans from a conservative scenario of about 15% total growth (if rates stay high and supply improves) to an optimistic scenario of around 35% (if rates fall sharply and population growth accelerates).

This translates to a projected average annual appreciation rate of approximately 4.5% to 4.7% per year over the next five years in Hobart, which is consistent with long-term Australian housing market performance.

The key assumption most forecasters rely on for their 5-year Hobart property predictions is that housing supply will remain constrained due to slow construction activity and planning limitations, while population and household formation continue to grow modestly.

Which areas in Hobart will have the best price growth over the next 5 years?

The three Hobart areas expected to deliver the best price growth over five years are the northern suburbs corridor (Glenorchy, Moonah, Claremont, Berriedale), the eastern shore lifestyle belt (Lindisfarne, Bellerive, Howrah, Tranmere), and CBD-fringe renewal zones near Macquarie Point.

These top-performing areas are projected to see 5-year cumulative price growth of approximately 30% to 40%, outpacing the citywide average by 5 to 15 percentage points.

This 5-year outlook differs from the shorter-term 2026 forecast mainly in degree rather than direction, as the same infrastructure catalysts (Bridgewater Bridge, Macquarie Point) have more time to fully capitalize into property values over the longer horizon.

The currently undervalued area with the best potential for outperformance over 5 years is the Derwent corridor around Claremont and Berriedale, where improved connectivity and relative affordability could attract significant buyer interest once the bridge project completes.

What property type will give the best return in Hobart over 5 years as of 2026?

As of early 2026, well-located detached houses in Hobart's family-friendly suburbs are expected to deliver the best total return over five years, combining steady capital appreciation with reliable rental income.

The projected 5-year total return for top-performing houses in Hobart is approximately 45% to 55%, comprising roughly 28% capital growth plus cumulative rental yields averaging 3.5% to 4% annually.

The main structural trend favoring detached houses over five years is the persistent undersupply of family homes in established suburbs, combined with demographic pressure from young families and downsizers competing for the same limited stock.

For investors seeking the best balance of return and lower risk over 5 years, townhouses and villa units in walkable locations near services offer a compelling middle ground, with projected total returns of 40% to 50% and better liquidity than apartments.

How will new infrastructure projects affect property prices in Hobart over 5 years?

The three major infrastructure projects expected to impact Hobart property prices over five years are the Bridgewater Bridge (completing mid-2026), the Macquarie Point precinct redevelopment (multi-year urban renewal), and ongoing public transport infrastructure planning for key corridors.

Properties near completed infrastructure projects in Hobart typically command a price premium of 5% to 15% above comparable homes in areas without such improvements, with the exact uplift depending on how directly the project enhances accessibility or amenity.

The neighborhoods most likely to benefit from these infrastructure developments include Bridgewater, Glenorchy, and Claremont (from the new bridge), plus West Hobart, North Hobart, and Battery Point edges (from Macquarie Point activity and improved CBD-fringe living appeal).

How will population growth and other factors impact property values in Hobart in 5 years?

Hobart's population is projected to grow at approximately 0.8% to 1.2% annually over the next five years, which translates to roughly 12,000 to 18,000 additional residents needing housing and putting steady upward pressure on property values.

The demographic shift with the strongest influence on Hobart property demand is the increase in smaller households (singles, couples, downsizers), which creates outsized demand for practical, low-maintenance housing options relative to traditional family homes.

Migration patterns are expected to provide a modest tailwind for Hobart property values, as interstate buyers continue to seek lifestyle and relative affordability compared to Sydney and Melbourne, though this flow has moderated from the pandemic-era surge.

The property types and areas that will benefit most from these demographic trends are townhouses and villa units in inner and middle-ring suburbs with good walkability, along with detached houses in family-oriented suburbs near quality schools.

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.

What is the 10 year property price outlook in Hobart?

What is the 10-year property price prediction for Hobart as of 2026?

As of early 2026, cumulative property price growth in Hobart over the next 10 years is expected to reach approximately 60%, meaning today's median dwelling value of A$725,000 could approach A$1.16 million by January 2036.

The range of 10-year forecasts spans from a conservative scenario of about 40% total growth (if supply reforms accelerate and rates stay elevated) to an optimistic scenario of around 85% (if undersupply persists and credit conditions remain favorable).

This translates to a projected average annual appreciation rate of approximately 4.8% per year over the next decade in Hobart, which is in line with long-term Australian capital city averages.

The biggest uncertainty factor in making 10-year property price predictions for Hobart is whether government policy will successfully increase housing supply, as any meaningful boost to construction could moderate price growth significantly from current projections.

What long-term economic factors will shape property prices in Hobart?

The three most important long-term economic factors that will shape Hobart property prices over the next decade are interest rate policy from the RBA, population and household formation trends, and the pace of new housing construction relative to demand.

The single long-term economic factor with the most positive impact on Hobart property values is likely to be continued undersupply of housing, as Tasmania's construction industry has consistently failed to meet dwelling targets, creating a structural floor under prices.

The single long-term economic factor posing the greatest structural risk to Hobart property values is an affordability ceiling, as Hobart incomes don't grow as fast as Sydney or Melbourne, meaning price growth eventually hits practical limits on what local buyers can afford.

You'll also find a much more detailed analysis in our pack about real estate in Hobart.

What sources have we used to write this blog article?

Whether it's in our blog articles or the market analyses included in our property pack about Hobart, we always rely on the strongest methodology we can, and we don't throw out numbers at random.

We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.

Source	Why it's authoritative	How we used it
Australian Bureau of Statistics (Property Price Indexes)	Australia's official statistics agency and the standard benchmark for capital city prices.	We use ABS data to anchor big-picture price direction and reality-check private indexes. It helps us validate whether growth feels realistic.
ABS Lending Indicators	Official national data on housing credit demand and borrowing activity.	We use this to explain demand pressure from owner-occupiers versus investors. It helps identify what's driving price momentum.
Reserve Bank of Australia	Primary source for Australia's policy rate settings and monetary policy direction.	We use RBA data to link housing demand to borrowing costs. It frames our interest rate scenarios for 2026 and beyond.
Cotality (CoreLogic) Home Value Index	Australia's most-cited hedonic home value index, widely used by banks and media.	We use it as a benchmark for property values rather than just asking prices. It helps triangulate confident point estimates.
NAB Hobart Property Market Insights	Major bank report citing Cotality data with Hobart-specific analysis.	We use it for Hobart-specific medians and 12-month growth figures. It serves as our last-mile cross-check.
Domain House Price Report	Widely referenced property research with transparent median and growth methodology.	We use Domain for Hobart house and unit medians and quarterly growth rates. It helps validate house versus unit performance.
SQM Research Weekly Asking Prices	Established housing data publisher with clearly stated methodology.	We use SQM to read seller sentiment and spot market heating before it shows in settled sales.
Real Estate Institute of Tasmania	State industry body publishing regular local sales and price commentary.	We use REIT data to triangulate local turnover and ground narratives in on-the-ground conditions.
Tasmanian Treasury Population Projections	Official government projection set for Tasmania's population outlook.	We use it to justify medium and long-run demand assumptions for Greater Hobart housing.
City of Hobart Population Forecast (.id)	Widely used local demographics platform with clear forecast methodology.	We translate state projections into Hobart-specific context and identify growth hotspots.
Infrastructure Investment Program (Bridgewater Bridge)	Official federal project page with confirmed scope, funding, and timing.	We connect infrastructure timing to northern suburb accessibility uplift and suburb outperformance potential.
New Bridgewater Bridge Project Timeline	Official project site for delivery staging and completion expectations.	We use it to support specific timing claims about when benefits will materialize for nearby suburbs.
Tasmanian Premier (Macquarie Point)	Direct government announcement about Hobart's largest urban renewal precinct.	We use it to justify CBD-fringe renewal demand and support long-term outperformance scenarios.
APRA Property Exposure Statistics	Banking regulator's key dataset on mortgage credit and lending risk.	We use it to explain why investor credit can re-accelerate quickly and highlight macro risks from tighter standards.
SGS Economics Rental Affordability Index	Widely cited national affordability benchmark built from rents and incomes.	We quantify rental stress as a driver of investor demand and explain why yields matter in Hobart.
Housing Data Dashboard	Official government aggregation of ABS building activity data.	We connect supply constraints to price pressure and keep the supply story evidence-based.
ABS Building Activity Australia	Official series for dwelling commencements, completions, and pipeline work.	We support claims about supply constraints and keep long-term forecasts realistic about construction response.
OpenAgent Hobart Market Profile	Independent property research platform with suburb-level analysis and forecasts.	We use OpenAgent for supplementary suburb performance data and cross-reference with other sources.