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Hobart's property market shows modest but steady growth with median house prices reaching $714,691 in August 2025.
The market is characterized by extremely low rental vacancy rates at 0.6% and significantly reduced property listings compared to last year. Recent interest rate cuts by the RBA are expected to support continued market recovery through 2025 and 2026.
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Hobart's property market demonstrates resilience with 2.2% annual price growth and strong rental demand.
Low supply conditions and improving borrowing capacity position the market for gradual but sustained growth.
| Market Indicator | Current Value | Annual Change |
|---|---|---|
| Median House Price | $714,691 | +2.2% (+$15,400) |
| Median Unit Price | $552,352 | +0.4% |
| Properties Listed | 888 properties | -30% vs last year |
| Rental Vacancy Rate | 0.6% | Well below national average |
| House Sales (Q2 2025) | 149 sales | +12.9% vs Q2 2024 |
| Unit Sales (Q2 2025) | 97 sales | +12.8% vs Q2 2024 |
| Interest Rate Impact | RBA rate: 3.60% | -0.25% cut August 2025 |
What's the current median house price in Hobart, and how has it changed over the past 12 months?
The median house price in Hobart stands at $714,691 as of August 2025.
This represents an annual increase of 2.2%, which translates to approximately $15,400 higher than the previous year. The median price last year was around $699,291, showing steady but modest growth in the Hobart residential market.
For comparison, the median unit price in Hobart is currently $552,352, with a smaller annual increase of just 0.4%. This indicates that houses are experiencing stronger price growth than units in the current market cycle.
The 2.2% annual growth rate reflects a balanced market where price increases remain sustainable and aligned with local economic conditions. This growth rate is considered healthy for long-term market stability in Hobart.
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How many properties are currently listed for sale in Hobart, and how does this compare with last year?
There are approximately 888 properties currently listed for sale in Hobart as of September 2025.
This figure represents a dramatic 30% decrease compared to the same time last year. The significant reduction in available listings indicates a supply-constrained market that favors sellers over buyers.
Lower listing numbers typically create more competition among buyers, which can support price stability and growth. This supply shortage is one of the key factors contributing to Hobart's continued price resilience despite broader economic uncertainties.
The reduced inventory also means buyers need to act more decisively when suitable properties become available, as the selection pool is considerably smaller than in previous years.
What's the average number of days a property spends on the market before selling in Hobart?
The average days on market in Hobart is trending downward as of September 2025.
Properties are expected to sell faster as interest rates ease, though specific current figures for days on market aren't precisely documented in recent reports. The trend indicates an improving market velocity compared to earlier periods.
The combination of reduced listings and improved borrowing conditions from recent RBA rate cuts is creating a more active buying environment. This means sellers can expect reasonable selling timeframes, while buyers face more competitive conditions.
Market experts anticipate that days on market will continue to shorten through the remainder of 2025 as interest rate relief takes full effect and buyer confidence strengthens.
How many sales actually took place in the last quarter, and how does that compare to last year?
In Q2 2025, Hobart recorded 149 house sales and 97 unit sales.
House sales increased by 12.9% compared to Q2 2024, when approximately 132 houses were sold. Unit sales also grew strongly, rising 12.8% from about 86 units sold in the same quarter last year.
This represents a combined total of 246 residential property sales in Q2 2025, compared to 218 sales in Q2 2024. The 12.8% overall increase in sales volume demonstrates renewed market activity and buyer confidence.
The strong sales growth across both houses and units indicates broad-based demand in the Hobart property market, suggesting that the market recovery is well-established rather than being limited to specific property types.
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What's the rental vacancy rate in Hobart, and how does it stack up against the national average?
Hobart's rental vacancy rate sits at an extremely low 0.6% as of July 2025.
This figure is significantly below the national average and ranks among the lowest vacancy rates nationwide. Such a low vacancy rate indicates severe rental supply shortages and extremely strong tenant demand in the Hobart rental market.
A vacancy rate below 1% is considered a landlord's market, where tenants face intense competition for available properties and rental prices typically experience upward pressure. This creates favorable conditions for property investors seeking rental income.
The persistently low vacancy rate reflects Hobart's growing appeal as both a lifestyle destination and economic center, with population growth outpacing new rental supply additions.
How much have average weekly rents in Hobart gone up or down in the past year for houses and units separately?
House rents in Hobart increased by 2.0% over the past three months, indicating strong upward momentum in rental prices.
Unit rents have experienced more modest growth, with annual increases of 0.4%. This suggests that rental demand is particularly strong for houses compared to units in the current market cycle.
The differential growth rates reflect varying supply and demand dynamics between property types. Houses are commanding stronger rental growth due to their appeal to families and tenants seeking more space.
Given the extremely low vacancy rate of 0.6%, both house and unit rents are likely to continue experiencing upward pressure as landlords maintain strong negotiating positions with tenants.
What is the current gross rental yield percentage for houses and for units in Hobart?
Current gross rental yields for houses in Hobart typically range from 3% to 4%.
Units generally offer similar yield ranges, with potential slight variations depending on location and property characteristics. These yields are considered reasonable for a capital city market, particularly given Hobart's growth prospects.
The combination of modest price growth and steady rental increases means yields remain stable and attractive for investors. The extremely low vacancy rate provides additional security for rental income streams.
With continued rental growth expected due to supply constraints, yield compression is unlikely in the near term, making Hobart attractive for income-focused property investors.
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How many new housing approvals or constructions have been recorded in Hobart over the past 12 months?
Several new houses and units are scheduled for construction throughout 2025 in Hobart.
However, specific 12-month approval numbers aren't precisely documented in current market reports. The general indication is that new supply additions remain limited relative to demand, which explains the continued low vacancy rates and supply constraints.
The development pipeline appears insufficient to significantly alleviate current supply shortages in the short term. This ongoing supply-demand imbalance supports continued price and rental growth expectations.
Local planning and development approvals suggest steady but modest increases in new housing supply, though not at levels that would dramatically change market dynamics.
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.
What's the population growth rate in Hobart, and how many people are projected to move there in the next five years?
While specific population growth rates aren't detailed in current reports, projections indicate positive population growth with continued migration to Hobart.
The sustained low vacancy rates and strong rental demand suggest that population growth is outpacing housing supply additions. This demographic trend supports continued property market strength.
Hobart's appeal as a lifestyle destination, combined with its growing economic opportunities, continues to attract both domestic and interstate migration. The city's relative affordability compared to Sydney and Melbourne makes it attractive for relocating residents.
Five-year projections suggest continued population growth, though specific migration numbers require more detailed demographic analysis beyond current property market reports.
What's the current unemployment rate in Hobart, and how does it compare to the Australian average?
Current unemployment figures for Hobart aren't specified in recent property market reports.
Historically, Hobart has tracked just under the national average, suggesting a relatively healthy employment market. The strong property sales and rental demand indicate a stable local economy supporting housing market activity.
Employment conditions appear supportive of continued property market growth, with sufficient income levels to sustain current price and rental trends. The correlation between employment stability and property market performance remains positive.
Local economic diversity, including tourism, government services, and emerging industries, provides employment resilience that supports housing market fundamentals.
How are interest rate changes from the Reserve Bank affecting borrowing capacity and buyer demand in Hobart specifically?
The Reserve Bank of Australia eased rates to 3.60% with a 0.25% cut on August 12, 2025.
This rate reduction has improved borrowing power for Hobart property buyers and is expected to reduce days on market as buyer activity increases. The improved borrowing capacity is supporting renewed buyer confidence and market participation.
Lower interest rates are particularly beneficial in Hobart's current market conditions, where reduced supply means buyers need to act quickly and competitively. Enhanced borrowing capacity allows buyers to compete more effectively for available properties.
The gradual recovery expected from rate relief is tempered by affordability limits, meaning growth will remain measured rather than explosive. Market experts anticipate continued rate relief will support sustained buyer demand through 2025.
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What do major banks and property analysts forecast for Hobart's property price growth over the next 1–2 years?
Major Australian banks forecast property price growth of 2-2.5% for 2025 in Hobart.
| Institution | 2025 Forecast | Outlook Basis |
|---|---|---|
| Westpac | +2.0% | Gradual recovery |
| NAB | +2.5% | Supply constraints |
| ANZ | +2.4% | Interest rate relief |
| Market Consensus | +2.0-2.5% | Balanced growth |
| Long-term Trend | Sustained | Low supply environment |
The forecasts reflect gradual but resilient growth driven by low supply and ongoing affordability challenges. Analysts expect the combination of reduced listings, low vacancy rates, and interest rate relief to support consistent price appreciation.
The 2-2.5% growth range is considered sustainable and aligned with local economic conditions, avoiding the boom-bust cycles seen in other markets. This measured growth trajectory supports long-term investment confidence.
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 presents a compelling investment opportunity with strong fundamentals supporting continued growth.
The combination of low supply, strong rental demand, and improving interest rate conditions creates favorable conditions for both owner-occupiers and investors through 2025 and beyond.
Sources
- Your Mortgage - Median House Prices Around Australia
- OpenAgent - Hobart Property Market
- Property Update - National Housing Market Update Australia
- REA - Properties for Sale in Hobart
- PRD - Hobart Market Update 2nd Half 2025
- Which Real Estate Agent - Hobart Property Market Update
- REA Insights - PropTrack Home Price Index July 2025
- BambooRoutes - Hobart Price Forecasts