Authored by the expert who managed and guided the team behind the Australia Property Pack
Yes, the analysis of Hobart's property market is included in our pack
Hobart's property market is showing steady momentum as we reach mid-2025, with median house prices hovering around $695,000-$715,000 and impressive rental yields reaching up to 6.2% in select suburbs.
Property investors and homebuyers are finding attractive opportunities across different market segments, particularly in suburbs like Moonah where house prices have grown 4.6% annually while maintaining rental yields above 4.4%. The combination of low vacancy rates at 0.6-0.9%, major infrastructure projects like the completed Bridgewater Bridge, and steady population growth from interstate migration creates a compelling investment environment for those looking to enter the Hobart market.
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 demonstrates solid fundamentals with median house prices at $695,000-$715,000, showing 1.1-2.5% annual growth and maintaining strong rental yields of 4-6% across key suburbs.
The market offers excellent opportunities for both investors seeking immediate rental income and owner-occupiers, with vacancy rates below 1% and major infrastructure projects supporting long-term growth prospects.
| Market Indicator | Current Status (June 2025) | Outlook |
|---|---|---|
| Median House Price | $695,000-$715,000 | Moderate growth 0-5% |
| Median Unit Price | $550,000-$560,000 | Stable to modest growth |
| Vacancy Rate | 0.6-0.9% | Remains tight |
| Best Rental Yields | 4.4-6.2% (houses) | Sustained demand |
| Market Type | Balanced to seller's market | Stable conditions |
| Days on Market | 45-50 days (houses) | Moderate timeframes |
| Growth Suburbs | Moonah, Kingston, North Hobart | Infrastructure-driven growth |
What's the current average property price in Hobart, and how has it changed over the past 6 months?
As of June 2025, the median house price in Hobart sits between $695,000 and $715,000, while the median unit price ranges from $550,000 to $560,000.
Over the past six months, Hobart's residential property market has shown steady momentum with house prices increasing by approximately 1.1% to 2.5% annually. Most of this growth has occurred in the recent six-month period as the market stabilized following earlier volatility.
Quarterly growth data reveals that houses have experienced around 1.4% growth, demonstrating consistent upward movement. Unit prices have remained relatively stable with minimal fluctuation, showing the market's maturation and buyer confidence in apartment living options.
The price movements reflect Hobart's position as an affordable capital city option, attracting both interstate migrants and investors seeking value compared to Melbourne and Sydney markets.
It's something we develop in our Australia property pack.
How do property prices in Hobart compare across key suburbs like Sandy Bay, West Hobart, and Moonah?
| Suburb | Median House Price | Median Unit Price | Annual Growth (Houses) | Rental Yield (Houses) |
|---|---|---|---|---|
| Sandy Bay | $1,200,000-$1,300,000 | $652,500 | 2-4% | 3.2-3.5% |
| West Hobart | $1,000,000 | $700,000 | 3-5% | 3.5% |
| Moonah | $628,000 | $450,000 | 4.6% | 4.4-5.0% |
| Hobart Average | $695,000-$715,000 | $550,000-$560,000 | 1.1-2.5% | 3.4-4.0% |
What's the short-term forecast (next 6–12 months) for Hobart's residential property market?
The Hobart residential property market is expected to experience modest growth of 0% to 3% through late 2025, with some optimistic forecasts suggesting potential growth up to 5.7% for houses.
Market conditions favor steady appreciation as buyer activity remains consistent and property listings stay tight, particularly for quality homes in desirable locations. The combination of low interest rate expectations and sustained demand from first-home buyers creates a supportive environment.
Units are projected to see growth of up to 5.3% if interest rates decline as anticipated and investor demand continues. The gap between house and unit prices in Hobart remains the smallest of any Australian capital, making units particularly attractive to investors.
Market sentiment indicates buyers are cautious but motivated, anticipating stable or rising prices and potential interest rate cuts that could boost affordability and demand.
What's the medium-term and long-term outlook (2–5 years) for capital growth and rental yields in Hobart?
Medium-term capital growth over 2-3 years is expected to be moderate but consistent, as Hobart's affordability advantage relative to other capital cities continues to attract buyers and investors.
Over the 5-year horizon, capital growth will likely be strongest in affordable, well-connected suburbs benefiting from new infrastructure projects. Areas like Moonah, Kingston, and North Hobart are positioned for above-average appreciation due to their proximity to major developments.
Rental yields are forecast to remain attractive throughout the period, particularly in suburbs with tight vacancy rates and ongoing infrastructure investment. Current yields of 4-5% are expected to be sustained, with some suburban areas maintaining yields exceeding 6%.
The long-term outlook benefits from continued population growth, especially interstate migration seeking lifestyle and affordability improvements compared to mainland capitals.
Infrastructure investments, including the completed Bridgewater Bridge and ongoing waterfront redevelopments, will likely support property values and rental demand across the medium to long term.
Don't lose money on your property in Hobart
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
Which property types in Hobart — houses, townhouses, or apartments — are performing best right now?
Units and apartments have outperformed houses in annual growth recently, showing stronger percentage gains despite lower absolute price points.
The gap between house and unit prices in Hobart is the smallest of any Australian capital city, making apartments particularly attractive to investors seeking affordability and rental yields. This price convergence creates unique opportunities for buyers seeking urban living at reasonable entry points.
Houses remain the most in-demand property type overall, especially among families and long-term residents seeking traditional ownership with land component. Family homes continue to attract strong buyer interest in growth suburbs like Moonah, Glenorchy, and Kingston.
Townhouses offer a middle ground, appealing to downsizers and professionals seeking lower maintenance while retaining some traditional housing benefits.
Current market data shows units delivering competitive returns for investors, while houses provide stability and long-term capital growth potential for owner-occupiers.
How is buyer demand trending in Hobart: are we in a buyer's, seller's, or balanced market?
Hobart is currently trending towards a balanced to seller's market, characterized by tight property listings and sustained buyer activity.
Days on market average 45-50 days for houses and 40-45 days for units, indicating moderate selling timeframes that favor sellers while remaining reasonable for buyers. These metrics suggest healthy market dynamics without extreme conditions in either direction.
Listing inventory remains constrained, particularly for quality properties in desirable locations, which supports price stability and modest growth. Buyers face limited choices but are not experiencing the fierce competition seen in some other Australian markets.
Vacancy rates near record lows at 0.6-0.9% demonstrate strong underlying demand and limited available rental stock, supporting both purchase and investment activity.
Buyer sentiment reflects cautious optimism, with purchasers motivated by stable conditions and expectations of continued value appreciation.
What's the current rental yield by suburb and property type in Hobart?
Hobart's rental yields vary significantly by suburb and property type, with some areas delivering exceptional returns for investors.
The highest-yielding suburbs for houses include Herdsmans Cove at 6.2%, Gagebrook at 5.9%, Bridgewater at 5.5%, and Moonah at 4.4-5.0%. These areas offer strong rental demand while maintaining affordable purchase prices.
For units and apartments, top-performing suburbs include Old Beach at 5.7%, Moonah at 5.0%, Claremont at 5.5%, and South Hobart at 4.7%. Sandy Bay units deliver around 4.0% yields despite higher purchase prices.
Central Hobart yields are slightly lower due to premium property prices, with houses typically yielding 3.4-4.0% and units 3.6-4.0%. However, these areas offer greater capital growth potential and tenant stability.
It's something we develop in our Australia property pack.
How are vacancy rates in Hobart trending, and what does that mean for investors?
Hobart's vacancy rate sits at an exceptionally low 0.6-0.9%, well below the national average and significantly under the "healthy" benchmark of 3%.
Vacancy rates have continued declining over the past year, indicating an increasingly tight rental market with strong tenant demand and limited available properties. This trend supports continued rental growth and reduces the risk of prolonged vacancy periods for investors.
For property investors, these low vacancy rates translate to minimal rental downtime, stable tenant retention, and potential for rental price increases. The tight market conditions favor landlords in lease negotiations and property selection.
The sustained low vacancy environment indicates strong underlying demand for rental properties, driven by population growth, interstate migration, and limited new rental stock coming to market.
Investors can expect reduced vacancy risk and strong rental demand across most property types and suburbs, making Hobart an attractive market for rental investment strategies.
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.
Are there any planned infrastructure projects or demographic shifts likely to impact Hobart's property market?
Several major infrastructure projects completed or underway in 2025 are positioned to significantly impact Hobart's property market trajectory.
The $786 million Bridgewater Bridge project completed in 2025 has already improved connectivity and reduced travel times across Hobart, benefiting suburbs on both sides of the Derwent River. This infrastructure upgrade enhances property values in previously less accessible areas.
The $300 million Macquarie Point Waterfront and Railyard Redevelopment is reshaping Hobart's waterfront, creating new residential and commercial opportunities while boosting nearby property values through urban renewal.
The $130 million Tasman Bridge Upgrade commencing mid-2025 will improve road safety and traffic flow, reducing congestion and enhancing accessibility across the city.
Demographic trends show continued population growth driven by interstate migration, particularly from people seeking lifestyle improvements and housing affordability compared to mainland capitals. This migration pattern supports sustained housing demand across all property types.
What is the ideal budget range and property type to buy in Hobart if I plan to live there?
For comfortable living in Hobart as an owner-occupier, a budget of $650,000 to $900,000 provides access to quality houses or large units in desirable suburbs.
This budget range opens opportunities in suburbs like South Hobart, New Town, Moonah, and Kingston, which offer good lifestyle amenities, school access, and commuting convenience to the city center.
Houses remain the preferred choice for families seeking traditional ownership with land component, outdoor space, and room for expansion. The median house price range of $695,000-$715,000 aligns well with this budget for quality family homes.
Units and townhouses appeal to professionals, downsizers, and first-home buyers seeking lower maintenance requirements while maintaining proximity to city amenities. Quality units in good locations typically fall within the $550,000-$700,000 range.
Consider factors beyond price including school zones, public transport access, shopping amenities, and future development plans when selecting your ideal property type and location.
What makes the most financial sense if I want to buy in Hobart to rent it out immediately?
For immediate rental investment returns, focus on suburbs offering high rental yields combined with strong tenant demand and affordable entry prices.
Top-performing suburbs for rental investment include Brighton, Moonah, Glenorchy, and Bridgewater, which deliver yields between 4.4% and 6.2% while maintaining steady tenant demand.
Units in affordable suburbs like Moonah and Old Beach offer excellent rental yields of 5.0-5.7% with lower purchase prices and maintenance costs compared to houses. These properties typically attract consistent tenant interest from professionals and small families.
Houses in high-yield areas such as Herdsmans Cove (6.2%), Gagebrook (5.9%), and Bridgewater (5.5%) provide strong rental returns, though they may require more hands-on property management.
Consider proximity to employment centers, public transport, shopping, and educational facilities when selecting rental properties, as these factors drive tenant demand and rental sustainability.
It's something we develop in our Australia property pack.
If I buy in Hobart now, which suburbs and property types are best positioned for a profitable resale in 3–5 years?
Moonah, Kingston, North Hobart, and Bellerive are highlighted as growth suburbs offering the best prospects for capital appreciation over the next 3-5 years.
These suburbs benefit from infrastructure investment, lifestyle appeal, and relative affordability compared to premium inner-city areas. Infrastructure projects like the Bridgewater Bridge and waterfront redevelopments particularly benefit these connected suburban areas.
Family homes in well-connected, affordable suburbs represent the strongest resale prospects, as they appeal to the growing number of interstate migrants seeking lifestyle improvements and housing value.
Modern units and townhouses in gentrifying areas offer significant upside potential, particularly properties that benefit from urban renewal projects and improved transport connections.
Properties near major infrastructure developments, quality schools, and employment centers are best positioned for strong resale demand and capital growth over the medium term.
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 mid-2025 presents compelling opportunities for both investors and owner-occupiers, with steady price growth, exceptional rental yields, and major infrastructure projects supporting long-term value appreciation.
The combination of low vacancy rates, affordable entry points compared to other capitals, and sustained population growth creates a favorable environment for property investment and lifestyle purchases across diverse budget ranges and property types.
Sources
- Real Estate Australia - Hobart House Prices
- John Ferguson Real Estate - Market Guidelines
- John Ferguson Real Estate - Hobart Suburbs 2025
- NAB - Hobart Property Market Insights
- Pulse Tasmania - House Price Growth
- Savings.com.au - Tasmania Rental Yields
- Savings.com.au - Hobart Suburbs 2025
- Deltos Finance - Hobart Market Forecast
- OpenAgent - Hobart Property Market
- OpenAgent - Best Investment Suburbs Hobart