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Yes, the analysis of Hobart's property market is included in our pack
Hobart's property market in 2025 offers unique opportunities for buyers seeking affordability and lifestyle in Australia's southernmost capital.
With median house prices around $695,000-$712,000 and units at $530,000-$550,000, Hobart remains significantly cheaper than Sydney or Melbourne while offering strong rental yields and a recovering market after the 2022-2024 correction.
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.
Hobart's residential property market shows modest growth potential in 2025 with 0-6% price increases forecast, driven by tight supply, interstate migration, and major infrastructure projects.
For investors, the Hobart rental market offers 3.4-4.0% yields with vacancy rates under 1%, while first-home buyers can find affordable options in suburbs like Glenorchy and Brighton starting from $565,000.
| Market Indicator | Current Status (June 2025) | 2025 Forecast |
|---|---|---|
| Median House Price | $695,000 - $712,000 | +1-6% growth |
| Median Unit Price | $530,000 - $550,000 | +1-5.3% growth |
| Rental Yields (Houses) | 3.4-4.0% | Stable |
| Vacancy Rate | Under 1% | Remain tight |
| Interstate Buyers | 30% of market | Continuing trend |
| Weekly Rent (House) | $573 | Rising |
| Weekly Rent (Unit) | $483 | Rising |
What types of properties can you buy in Hobart, and who's buying them?
Hobart's residential property market primarily offers standalone houses, units/apartments, and townhouses.
Houses dominate the market with median prices ranging from $565,000 in Brighton to $978,000 in North Hobart. Popular suburbs for house hunters include Glenorchy, Moonah, Kingston, and Bellerive, each offering diverse choices for different budgets and lifestyles.
Units and apartments are significantly more affordable with median prices around $530,500 to $550,000, making them attractive for first-home buyers and investors seeking higher rental yields. These properties are concentrated in inner-city areas and established suburbs with good amenities.
The typical buyers in Hobart's market include first-home buyers targeting affordable suburbs, young professionals and families drawn to the lifestyle and quality schools, interstate buyers (particularly from Victoria and NSW) who made up 30% of purchases in 2024, and investors attracted by strong rental yields and vacancy rates under 1%.
It's something we develop in our Australia property pack.
How have Hobart property prices changed, and where are they heading in 2025?
Hobart's property market peaked in 2022 before experiencing a correction of 7-12% by late 2024, but prices have started recovering as we reach mid-2025.
Current median house prices sit between $695,000 and $712,000, while units average $530,000 to $550,000. The market showed annual growth of 1-3% in 2024-25, with conservative forecasts suggesting this trend will continue.
Looking ahead for the remainder of 2025, most analysts predict modest growth of 0-3%, though KPMG forecasts potential gains of 5-6% if supply remains tight and interest rates fall as expected. The market's recovery is being driven by affordability relative to other capitals, major infrastructure projects, and potential interest rate cuts later in the year.
Key factors supporting price growth include the tight housing supply, continued interstate migration, and major developments like the Macquarie Point Waterfront redevelopment that will boost employment and demand.
Should you buy or rent in Hobart in 2025?
| Factor | Buy (House) | Buy (Unit) | Rent (House) | Rent (Unit) |
|---|---|---|---|---|
| Median price/rent | $695,000-$712,000 | $530,000-$550,000 | $573/week | $483/week |
| Weekly cost* | $837 | $440 | $573 | $483 |
| % of median income | 55.8% | 29.3% | 38.2% | 32.2% |
| Upfront costs | High (20% deposit + fees) | Moderate (20% deposit + fees) | Low (bond + rent) | Low (bond + rent) |
| Flexibility | Low | Low | High | High |
| Long-term wealth | Builds equity | Builds equity | No equity | No equity |
| Maintenance | Your responsibility | Your responsibility | Landlord's responsibility | Landlord's responsibility |
*Mortgage assumes 20% deposit, 30-year loan at 6% p.a.
Financially, renting houses is currently cheaper than buying, but the gap narrows significantly for units where mortgage repayments are comparable to rent.
From a lifestyle perspective, homeownership offers stability and the freedom to customize your space, while renting provides flexibility and less maintenance responsibility. If you're planning to stay in Hobart long-term and can afford the deposit, buying may be advantageous for building equity and benefiting from future growth.
What major trends are shaping Hobart's real estate market in 2025?
The Hobart property market in 2025 is being influenced by several key trends that buyers and investors need to understand.
Tight housing supply remains the dominant factor, with low new construction and vacancy rates under 1% keeping both prices and rents elevated. This supply constraint is expected to continue throughout 2025, supporting price stability.
Population growth in regional Hobart reached 3% in 2024, driven primarily by interstate migration from buyers seeking lifestyle changes and affordability. This trend shows no signs of slowing, with 30% of buyers coming from mainland states.
Major infrastructure projects are set to transform parts of the city, including the Macquarie Point Waterfront redevelopment and proposed stadium, which will increase employment opportunities and housing demand in surrounding areas.
Potential interest rate cuts in late 2025 could provide additional stimulus to the market, making borrowing more affordable and potentially accelerating price growth beyond current conservative forecasts.
What steps should you follow to buy property in Hobart?
Buying property in Hobart requires following a structured process, especially important for interstate buyers and foreign investors.
- Secure finance pre-approval: Contact a mortgage broker or lender to understand your borrowing capacity and get pre-approval before house hunting.
- Obtain FIRB approval (foreign buyers only): Non-residents must apply to the Foreign Investment Review Board before purchasing any property in Australia.
- Research suburbs thoroughly: Use online portals like realestate.com.au and domain.com.au, engage with local agents, and join social media groups for insights.
- Conduct property inspections: Interstate buyers should consider virtual tours or engage a buyer's agent to inspect properties on their behalf.
- Complete due diligence: Engage a conveyancer or lawyer for contract review, title checks, and arrange building and pest inspections.
- Make your offer: Most Hobart sales occur through private treaty (negotiated sale), though auctions are becoming more common in premium areas.
- Proceed to settlement: Typically occurs 30-45 days after offer acceptance, when final payment is made and ownership transfers.
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Where can you find reliable real estate agents and platforms in Hobart?
Finding trustworthy real estate professionals is crucial for a successful property purchase in Hobart.
The primary online platforms for property searches are realestate.com.au, domain.com.au, and Properstar, which offer comprehensive listings with photos, virtual tours, and detailed property information.
For agent selection, use directories like RateMyAgent, Yellow Pages, Which Real Estate Agent, and realestate.com.au's agent search feature to read reviews and compare performance metrics. These platforms show agents' recent sales, average selling times, and client testimonials.
Notable agencies operating in Hobart include established firms like LJ Hooker, Harcourts, and Peterswald, alongside boutique agencies such as 4one4 Property Co., Downton Property, and Slate Estate Agents. Each offers different specializations and local market knowledge.
Interstate and overseas buyers should consider engaging a buyer's agent who can represent their interests, conduct inspections, and navigate the local market on their behalf.
What can you afford in Hobart with different budgets?
| Budget Range | Property Type & Location | What You Get | Key Tradeoffs |
|---|---|---|---|
| $400,000-$500,000 | Units in Glenorchy, Moonah, Warrane; Houses in Clarendon Vale, Risdon Vale | 1-2 bedroom units, older 2-3 bedroom houses | Further from CBD, older properties, smaller spaces, may need renovation |
| $600,000-$700,000 | Houses in Glenorchy, Brighton, Moonah, Kingston | 3-bedroom family homes, established neighborhoods | 15-25 minutes from CBD, varying property conditions |
| $800,000-$1,000,000 | Houses in Bellerive, parts of North Hobart, Sandy Bay edges | Modern 3-4 bedroom homes, larger blocks | Still competitive market, limited premium suburb access |
| $1,000,000+ | Premium houses in North Hobart, Sandy Bay, Battery Point, West Hobart | Character homes, water views, prime locations | High entry cost, limited stock, heritage restrictions in some areas |
Budget constraints significantly impact your property options in Hobart, but opportunities exist across all price ranges. Entry-level buyers can access the market through units or houses in developing suburbs, while those with larger budgets can secure properties in established, lifestyle-oriented neighborhoods closer to the city center and waterfront.
Which Hobart neighborhoods offer the best value for different buyers?
Hobart's diverse neighborhoods cater to different buyer priorities, from affordability to premium lifestyle locations.
Budget-friendly suburbs include Glenorchy, Brighton, Risdon Vale, and Clarendon Vale, offering houses from $565,000. These areas provide excellent value with strong rental yields, ongoing infrastructure upgrades, and good access to amenities, though they're further from the CBD.
Rising star suburbs encompass Kingston, Moonah, Bellerive, Rokeby, Blackmans Bay, and Midway Point. These areas are experiencing gentrification, new developments, and increasing popularity among families due to improving amenities and relative proximity to the city.
High-end neighborhoods like North Hobart, Sandy Bay, Battery Point, and West Hobart command premium prices but offer exceptional lifestyle benefits, historic character homes, proximity to the CBD, cultural attractions, and historically strong capital growth.
It's something we develop in our Australia property pack.
Each neighborhood category serves different buyer needs - investors might target budget suburbs for yields, while lifestyle buyers often prefer the amenities and atmosphere of premium areas.
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 much does it cost to live in Hobart, and how does this affect property ownership?
Understanding Hobart's living costs is essential when considering property ownership in the city.
A single person typically spends AUD 1,700-1,800 per month excluding rent, while a family of four needs around AUD 6,800 per month including rent. These costs are lower than Sydney or Melbourne but have been rising steadily.
Weekly rental costs average $573 for houses and $483 for units, while mortgage repayments run approximately $837 for houses and $440 for units (assuming 20% deposit and 6% interest rate). Utilities add $300-566 monthly to housing costs.
Property ownership means higher upfront and ongoing costs compared to renting, including council rates, insurance, and maintenance. However, these costs may be offset by potential capital growth and the security of ownership, particularly given Hobart's tight rental market.
Daily expenses like groceries, transport, and dining remain reasonable compared to mainland capitals, making Hobart attractive for those seeking a more affordable lifestyle without sacrificing urban amenities.
What mistakes do people commonly make when buying in Hobart?
Avoiding common pitfalls can save buyers significant money and stress in Hobart's property market.
The biggest mistake is insufficient suburb research - each area has unique characteristics, price points, and growth potential. Buyers should spend time understanding local amenities, transport links, and demographic trends before committing.
Skipping due diligence is another costly error. Always arrange building and pest inspections, review contracts with a conveyancer, and check property titles for any encumbrances or restrictions, especially in Hobart's many heritage areas.
Underestimating total costs catches many buyers off-guard. Beyond the purchase price, factor in stamp duty, conveyancing fees, insurance, moving costs, and immediate repairs or renovations.
Emotional overbidding in competitive situations leads to buyer's remorse. Set a firm budget based on comparable sales and financing capacity, then stick to it regardless of competition.
Foreign buyers failing to obtain FIRB approval before signing contracts face significant penalties and may lose their deposit. Always complete this process early in your property search.
What's life like in Hobart for newcomers, and does owning property help?
Hobart offers newcomers a welcoming community with a strong local identity that makes integration relatively easy compared to larger Australian cities.
The lifestyle revolves around outdoor activities, with easy access to beaches, mountains, and wilderness areas. The city's thriving arts scene, exceptional food culture centered on local produce, and slower pace than mainland capitals appeal to those seeking work-life balance.
Property ownership can enhance the settling-in experience by providing stability and a sense of belonging to the community. Homeowners often find it easier to establish roots through neighborhood connections and local involvement.
However, Hobart's tight rental market (under 1% vacancy) means finding quality rental accommodation can be challenging and expensive. This makes property ownership particularly attractive for those planning to stay long-term, as it provides housing security.
The expat and interstate migrant community is growing, with established social networks and support systems making the transition smoother for newcomers regardless of whether they rent or buy.
Which areas perform best for long-term rentals in Hobart?
- Glenorchy: Offers affordable properties with strong rental demand due to proximity to shopping centers and public transport. Typical yields of 3.8-4.0% for houses.
- Moonah: Popular with young professionals and families, benefits from ongoing gentrification and excellent amenities. Consistent rental demand supports stable returns.
- Kingston: Family-friendly suburb with good schools and shopping, attracts quality long-term tenants. Growing population supports rental growth.
- Bellerive: Waterside location with ferry access to CBD appeals to professional tenants willing to pay premium rents. Lower yields but quality tenants.
- Sandy Bay: Close to University of Tasmania campus ensures constant student and academic staff demand. Mix of houses and units provides diverse investment options.
Tenants in Hobart prioritize modern, well-maintained properties close to amenities, schools, and transport links. The market's sub-1% vacancy rate means landlords can be selective with tenants while maintaining strong occupancy.
Current rental yields range from 3.4-4.0% for houses, with units typically achieving higher yields. While these returns have compressed from previous years due to price growth, the extremely low vacancy rates provide income security.
It's something we develop in our Australia property pack.
What about short-term rental opportunities in Hobart?
Short-term rental investment in Hobart can generate higher returns than traditional rentals but requires more active management.
Prime locations for short-term rentals include Battery Point, Sandy Bay, North Hobart, and the CBD, which attract tourists visiting for festivals, MONA, and wilderness experiences. These areas command premium nightly rates, especially during peak season.
Potential earnings vary significantly by season, with summer months and major events like Dark Mofo generating the highest returns. Annual revenues can exceed long-term rental income by 30-50% in prime locations with good management.
Legal compliance is essential - operators must register with local councils and comply with state short-stay accommodation regulations. Additional taxes may apply, and some strata buildings restrict or prohibit short-term letting.
Success requires professional photography, responsive communication, and maintaining high cleanliness standards. Many investors use property management companies specializing in short-term rentals, though this reduces net returns.
The market faces some uncertainty with potential regulatory changes, so investors should factor in the possibility of tighter restrictions when calculating long-term returns.
Is buying property in Hobart worth it in 2025?
Buying property in Hobart in 2025 presents different value propositions depending on your goals and circumstances.
For owner-occupiers planning to stay long-term, purchasing offers stability and potential capital growth as the market recovers from its 2022-2024 correction. With prices still below peak levels and forecast growth of 1-6%, there's opportunity for equity building.
Investors can benefit from Hobart's strong rental market fundamentals - vacancy rates under 1%, yields of 3.4-4.0%, and consistent tenant demand driven by population growth and limited supply. While yields have compressed, the rental income stability is attractive.
Capital growth prospects appear modest but positive, with infrastructure projects and continued interstate migration supporting demand. Rising star suburbs like Kingston and Moonah offer particular potential for above-average growth.
The key risks include further interest rate rises, potential economic downturn, and Hobart's smaller, less liquid market compared to mainland capitals. However, for those seeking an affordable entry to Australian property or a lifestyle change, Hobart's combination of relative value, growth potential, and quality of life makes it worth serious consideration in 2025.
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 in 2025 offers genuine opportunities for both investors and owner-occupiers, with recovering prices, tight rental conditions, and strong lifestyle appeal.
Success requires thorough research, realistic budgeting, and understanding local market dynamics - but for those who do their homework, Hobart presents one of Australia's most balanced property markets combining affordability, growth potential, and exceptional liveability.
Sources
- 4one4 Property Co - Tasmania 2025 Real Estate Market
- OpenAgent - Best Suburbs to Invest Hobart
- RealEstate.com.au - Hobart House Price Forecast
- PRD - Hobart Property Market Update 1st Half 2025
- Deltos Finance - Hobart Property Market Forecast 2025
- My Hobart Home - Buying Property in Tasmania
- RateMyAgent - Hobart Real Estate Agents
- Numbeo - Cost of Living in Hobart
- Expatistan - Hobart Cost of Living
- BambooRoutes - Hobart Real Estate Market Analysis