All sources have been thoroughly verified for credibility. Furthermore, a local real estate expert has reviewed and approved the final article.
Yes, the analysis of Hobart's property market is included in our pack
Considering buying real estate in Hobart? You're not alone!
Many people are fascinated by Hobart's natural beauty and dream of owning a cozy cottage or a modern apartment in this city.
Does it make sense, though? Are property prices increasing in Hobart? What is the price per sqm? Is it wiser to buy in Battery Point or Sandy Bay? And the taxes? Where are the best yields?
We've got it all sorted. No worries.
The BambooRoutes team knows this market inside and out. Actually, we have condensed all our findings in a pack. Get it now.
In this article, we'll provide you with helpful information.
How is the property market in Hobart?
Is the property market doing well or poorly? People disagree. Instead of listening to opinions, we prefer to look at data and stats to find the real answers.
Property types
In Hobart, there are various types of properties available for sale, catering to different preferences and needs.
These include houses, which are standalone structures offering ample space and privacy for families or individuals seeking a permanent residence. Additionally, there are apartments or condos, suitable for those desiring a more compact living space with shared amenities.
For investors, townhouses may be a viable option, offering a middle ground between houses and apartments.
Furthermore, vacant land can be purchased for those looking to build their dream home from scratch.
Hobart's property market also encompasses commercial properties such as offices, shops, and warehouses, ideal for entrepreneurs or businesses looking to establish a presence in the city.
What's better: buy or rent?
(If you're buying for yourself and not to rent out)
Whether you're considering settling in Hobart or already living there, you might be thinking about the pros and cons of buying versus renting a property in this charming Australian city.
Usually, buying is better than renting in Hobart due to the city's strong property market and relatively low property prices.
But, if you prioritize flexibility, renting is the way to go.
Property pricing in Hobart
On average, according to the last data from CoreLogic, buying a property in Hobart would cost you around $5,200 per square meter.
It's evident that there are significant disparities. The value of a square meter for an apartment in Hobart city center might differ from a suburban house in Sandy Bay. We actually offer a more in-depth analysis in our pack for buying property in Hobart and in Australia.
To put things in perspective, it is 3.7 times less than the prices in the center of New York.
Also, housing prices in Hobart are 52% cheaper than in Sydney.
The most expensive neighbourhoods in Hobart are probably Battery Point and Dynnyrne, while the cheapest are probably Glenorchy and Moonah.
Trends
First and foremost, we have to acknowledge that Australia is, today, one of the most stable countries in the world. The last Fragile State Index that has been reported for this place is 22.7.
It is something to have in mind when wondering whether it's a good investment to buy a property in Hobart.
Also, according to the International Monetary Fund (IMF), Australia's economy is expected to soar by 8.8% in the coming 5 years, resulting in an average GDP growth rate of 1.8%.
If you want to invest in real estate in Hobart it's a good thing because, in a growing economy, citizens experience rising incomes that allow them to invest in real estate, either for personal use or as a profitable asset, contributing to the increased demand for properties.
Also, in Australia, the average GDP per capita has changed by 4.0% over the last 5 years. The growth, although minimal, is still present.
These are cues signaling that property prices in Hobart might go up in 2024 and during the coming years.
Looking for more updated data? We've done a big-picture study to find out if it's a good idea to purchase property in Australia right now.
Buying property in Hobart
Buying real estate in Hobart can be challenging due to the difficulty in obtaining reliable and up-to-date information about the market. That's why we have created the pack to buy property in Hobart and in Australia.
Buying process
In the pack of documents we have built, we've covered everything about buying a property, from the contacts you'll need to the taxes that need to be paid, and even where to look for available properties.
Now, we're presenting a simpler version to make it easier for you to understand and follow along.
This is the step-by-step process to purchase a property in Hobart:
- Research Hobart's property market and regulations.
- Obtain a Tax File Number (TFN) and Australian Business Number (ABN) if required.
- Engage a licensed real estate agent familiar with Hobart.
- Visit properties and consider factors like proximity to the waterfront or historical landmarks.
- Perform title searches and check for planning restrictions specific to Hobart.
- Secure financing through local banks or mortgage brokers.
- Make an offer through a Contract for Sale with specific terms and conditions.
- Obtain a Land Information Memorandum (LIM) and Council approvals for the property.
- Sign the final contract and pay a deposit (usually 10% of the purchase price).
- Arrange a building inspection and pest inspection, common in Hobart due to older properties.
- Transfer utilities into your name, including water, gas, and electricity.
- Attend settlement with your solicitor or conveyancer, and receive the keys upon successful completion.
Also, if you're not from the country, you might want to check our article on how to buy property as a foreigner in Australia.
Make a profitable investment in Hobart
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Where to find a property
Explore these websites to find properties in Hobart:
- Realestate.com.au - A comprehensive platform for real estate services, providing property listings, mortgage information, suburb research, and the latest property news.
- Domain - A property portal offering a wide range of real estate services, including property listings, home loans, new developments, and news updates.
- Flatmates - Australia's largest share accommodation website, connecting individuals looking for shared homes or flatmates.
- Allhomes - A real estate website providing various property services, including buying, renting, selling, and commercial properties.
- Realcommercial - The leading destination for commercial property, offering a wide range of listings, investment opportunities, news, and agency information.
Also, know that we have included contacts of real estate agencies, property lawyers, moving companies, expats communities and more in our pack for buying property in Australia.
What you can get
As mentioned before, the average price per sqm in Hobart is $5,200. A 1-bedroom property with an area of 60 square meters would cost approximately $312,000, and a 2-bedroom property with an area of 85 square meters would cost approximately $442,000.
However, property prices can vary because of their qualities and where they're located.
Property prices in Hobart's prime areas are often pricier. An apartment in Battery Point could cost you around $600,000, while a residence in Sandy Bay might be priced at $1,170,000.
Certain places come obviously with a lower price tag. You may find a condominium in Moonah for $170,000, or one in Clarendon Vale priced only at $140,000.
We give a more detailed pricing list in our full pack for buying property in Australia.
Common mistakes
Here are the main pitfalls when buying property in Hobart, Australia:
- Heritage-listed properties may have strict renovation limitations, affecting customization options.
- Bushfire-prone areas require careful assessment of fire safety measures and insurance costs.
- Potential impact of sea-level rise on coastal properties demands thorough risk evaluation.
- Tasmanian tiger and Aboriginal heritage protections may restrict land development.
- Overlooking the risk of landslides in hilly terrains can lead to property instability.
- Tasmania's unique flora and fauna regulations may restrict property modifications.
- Complex water rights regulations can affect access to and usage of water sources.
- Failure to consider potential climate change effects on weather patterns may impact property resilience.
We don't want this to happen to you, so we have included a full checklist for your property investment in our pack of documents. Avoid these mistakes and save a lot of money.
Everything you need to know is included in our Australia Property Pack
Living in Hobart
Life in Hobart is peaceful, with a great balance of city amenities and natural beauty, making it a desirable place to buy property.
Cost of living
The cost of living in Hobart is generally considered affordable compared to other Australian cities. Prices for groceries, rent and utilities are slightly lower than the national average, making it an attractive option for those looking for a cost-effective place to live.
Here are some examples to better understand the cost of living in Hobart, Australia:
- Rent for a one-bedroom apartment in the historic neighborhood of Battery Point: $1,900 per month.
- A meal at a local restaurant with "Tasmanian Salmon," a renowned local specialty: $35.
- Monthly "Greencard" for public transportation: $80.
- Utilities (electricity, water, heating) for a small apartment in Sandy Bay: $130 per month.
- A cup of "Tasmanian Roasted Coffee," a popular local blend: $4.50.
- Ticket to the "MONA" (Museum of Old and New Art): $20.
- Monthly membership at a popular fitness chain like "Anytime Fitness": $60.
- A bottle of "Cascade Ginger Beer," a well-known Australian soft drink: $3.50.
Neighbourhoods
We want to show information in an easy-to-understand way. So, we made a table that lists the different areas in Hobart. For yields, prices and rents, check our property pack.
| Neighborhood | Description | Strengths | Weaknesses |
|---|---|---|---|
Sandy Bay | Sandy Bay is a beautiful waterfront suburb with stunning views of the river and mountain. It offers a mix of upscale housing, vibrant cafes, and proximity to the University of Tasmania. | Scenic views, close to amenities, and educational institutions. | Higher property prices, heavy traffic during peak hours. |
North Hobart is a trendy and diverse neighborhood with a lively restaurant and arts scene. It is popular among young professionals and food enthusiasts. | Great dining and cultural options, vibrant community. | Parking can be challenging, limited green spaces. | |
Battery Point | Battery Point is a historic and charming area with quaint cottages and cobblestone streets. It offers a unique blend of heritage and modern lifestyle. | Rich history, picturesque streets, and close to the city center. | Limited public transport, higher living costs. |
Hobart CBD | The Central Business District (CBD) is the heart of Hobart and offers a mix of commercial, retail, and residential spaces. It is bustling with shops, restaurants, and cultural attractions. | Central location, abundant amenities, and employment opportunities. | Parking challenges, higher rental costs. |
West Hobart | West Hobart is a quiet and leafy suburb located close to the CBD. It is known for its historic homes, parks, and community-oriented atmosphere. | Close to the city, peaceful surroundings, and local cafes. | Limited public transport, fewer shopping options. |
South Hobart | South Hobart is a mix of residential and bushland areas. It is home to the picturesque Cascade Brewery and the beautiful Knocklofty Reserve. | Nature trails, close to attractions, and peaceful environment. | Some hilly areas, limited public transport. |
New Town | New Town is a diverse and family-friendly neighborhood. It offers a range of housing options, schools, and easy access to the CBD. | Good schools, shopping centers, and proximity to the city. | Heavy traffic during peak hours, limited green spaces. |
Moonah | Moonah is a vibrant suburb with a multicultural community. It has a range of shops, restaurants, and services. | Ethnic diversity, affordable housing, and local amenities. | Some areas may have higher crime rates. |
Glenorchy | Glenorchy is a larger suburb with shopping centers, parks, and recreational facilities. It is a mix of residential and commercial areas. | Ample shopping options, recreational facilities, and affordable housing. | Less central to the CBD, limited public transport. |
Life in Hobart
Hobart is an economically stable city with a diverse range of industries. It has a strong tourism industry, as well as a thriving manufacturing sector and a growing IT and digital services industry.
What expats usually like the most in Hobart is its stunning natural beauty, with the majestic Mount Wellington providing a beautiful backdrop to the city, and its vibrant culture, with many festivals and events taking place throughout the year.
Regarding safety, the crime rate of Hobart is around 33, which is not concerning. Hobart has a low population density and strong community spirit, which helps to deter crime.
Access to healthcare in Hobart is generally good, with a number of public and private hospitals, medical centres, and specialists available.
Finally, it is worth noting that the University of Tasmania ranks among the top 300 universities in the world.
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Renting out in Hobart
This section is for those who are looking to purchase a property not to live in themselves, but to rent it out and make an income from the rental.
Long-term
Tenant Profiles in Hobart
According to the data reported by Wikipedia, the home ownership rate in Australia is 66%, which is average.
It means that, if you decide to buy and rent out in Hobart, there will be a good number of people who can become your potential tenants.
If you decide to buy and rent out to long-term tenants, you should target students, young professionals, and retirees in Hobart. Other potential tenant profiles include those looking for short-term accommodation, such as holidaymakers or business travelers.
Here is a little summary table we've made for you.
| Property type and area | Profiles of potential tenants | What they are looking for | Expected monthly rent in $ |
|---|---|---|---|
Apartment in Hobart CBD | Professionals, students | Central location, access to amenities | $1500 - $2500 |
House in Sandy Bay | Families, university staff | Close to university, waterfront | $2500 - $4000 |
Unit in North Hobart | Youthful professionals, artists | Artsy community, dining options | $1800 - $2800 |
Townhouse in Battery Point | Families, professionals | Historic area, waterfront | $2200 - $3500 |
Apartment in West Hobart | Young professionals, academics | Quiet neighborhoods, proximity to CBD | $1700 - $2700 |
House in Lenah Valley | Family-oriented, suburban | Residential area, schools | $2000 - $3200 |
Unit in New Town | Students, professionals | Close to schools, shops | $1500 - $2500 |
Rental yields
Nowadays, rental yields in Hobart are usually below 5%. It's not much. A good rental yield is usually around 7% or higher. Maybe, you knew it already.
Hobart's inner suburbs tend to have the highest rental yields due to their proximity to amenities like schools, shops, and public transport, as well as their relative affordability compared to more exclusive suburbs. Properties with two or more bedrooms are particularly sought after in Hobart, as they offer a good balance of affordability and rental income potential.
For further explanation and a more detailed breakdown, you can check the reports and analyses we have made.
Short-term
You could also decide to rent short-term to students attending the University of Tasmania, or to visitors looking to explore the city's many attractions.
If you decide to go with that option, look for properties in the suburbs of West Hobart, South Hobart, Battery Point, and Sandy Bay as these areas have great rental potential due to their proximity to the city centre and popular attractions.
Currently, there are approximately 1,050 active Airbnb listings in Hobart, reflecting a highly dynamic and bustling short-term rental market. The average daily rate stands around $185, which is quite high.
You have the opportunity to generate a nice additional income stream then. According to online testimonials and analytics platform like AirDNA, Guesty and Inside Airbnb, people who offer short-term rentals in Hobart can make around $3400 per month. Also, the average occupancy rate is estimated at 80%.
Is it worth buying real estate in Hobart then?
Buying a property in Hobart is a fantastic idea for many. The city offers a blend of natural beauty, affordability, and a stable property market that's hard to ignore. With property prices significantly lower than major Australian cities like Sydney and Melbourne, it's an attractive option for first-time buyers and investors looking to enter the market without breaking the bank.
The city's cost of living is relatively low, making it an appealing choice for those seeking an affordable place to live. Moreover, Hobart's strong property market and the potential for property appreciation in the coming years make it a smart long-term investment.
However, it's not a one-size-fits-all decision. Buying a property in Hobart may not be the best choice if you have short-term plans or value flexibility above all else. Property transactions involve various costs, and if you plan to sell in a few years, these costs might outweigh any potential gains.
Additionally, while Hobart offers affordable options, some prime areas can have higher property prices, which may not align with everyone's budget. Furthermore, if you're solely seeking high rental yields, you might need to look beyond Hobart, as rental yields are often below 5%.
Overall, whether buying a property in Hobart is worth it depends on your specific circumstances and long-term goals, but for many, it presents an excellent opportunity for a stable and affordable investment in a city known for its natural beauty and quality of life.
Make sure you understand the real estate market in Hobart
Don't rush into buying the wrong property in Australia. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.
The content provided here is for informational purposes only and does not imply endorsement or advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information, including text, images, links, or other elements in this material. Following the content and analyses presented here does not assure specific outcomes. For guidance tailored to your individual circumstances, it is recommended to consult with a professional, such as a lawyer, accountant, or business advisor.