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
Why is Hobart emerging as a prime destination for property investment in 2025? Is it the attractive rental returns, the vibrant cultural scene, or the relative affordability compared to other Australian cities? What are the key benefits for investors?
We get asked these questions all the time because we’re on the ground, working closely with developers, real estate agents, and investors like you. With so much interest in this market, we’ve decided to turn our individual answers into a comprehensive article for everyone to benefit from.
Our goal is to provide a clear case for investing in Hobart's real estate market, backed by our firsthand experience and market knowledge.
If you think we missed an important point in our content or want to know more, don’t hesitate to reach out (we answer super fast). Your feedback makes our content even stronger.
Finally, please note that this is not financial or investment advice. Investing in real estate carries inherent risks, and market conditions can change unexpectedly. We strongly encourage you to conduct thorough research and consult with a qualified financial advisor before making any investment decisions.
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1) Hobart’s location makes it a key hub for trade and commerce in Tasmania
Hobart is a key player in Tasmania's trade and commerce scene thanks to its strategic location.
In recent years, the Port of Hobart has been bustling, handling around 1.6 million tonnes of cargo in 2023 and 2024. This cargo includes vital supplies like fuels and materials for Antarctic missions, showcasing Hobart's role in maritime logistics.
Hobart isn't just about volume; it also plays a big part in Tasmania's overall freight scene, managing 11.9% of the total tonnage across all Tasmanian ports. A large chunk of this is container trade, with general cargo and empty containers making up 65.3% of the total container trade across Bass Strait.
Infrastructure is a big deal here. The Australian Government is investing in Hobart's transport networks, like the Hobart Rapid Bus Network, to boost connectivity and make trade smoother. This means getting goods in and out of Hobart is becoming more efficient.
Another boost comes from the development of the Huon Highway Corridor, which improves access and trade efficiency. This development reinforces Hobart's strategic advantage in the region.
Sources: TasPorts Trade Report Q4 FY24, Australian Government Infrastructure Investment
2) Hobart’s cultural scene is booming, making it easier for you to rent out short-term
Hobart is becoming a cultural hotspot, and it's driving up the demand for short-term rentals.
In 2023, Hobart attracted 1.6 million domestic overnight visitors and 2.2 million domestic day visitors, all eager to dive into the city's vibrant cultural scene. This influx of visitors is a testament to Hobart's growing allure, with its unique blend of art, music, and food festivals drawing crowds from all over.
The city is buzzing with cultural events and festivals, which are not just fun but also a big reason why people need places to stay. In fact, the number of nights people spent in Hobart and nearby areas shot up, with Hobart City itself seeing a 19% growth in overnight stays. This means more people are looking for short-term rentals to enjoy everything Hobart has to offer.
By September 2024, there were 1,710 active Airbnb listings in Hobart, each typically booked for 263 nights a year. This shows just how popular short-term rentals have become, as visitors flock to the city for its cultural experiences. The median occupancy rate of 72% further highlights the strong demand, as people are eager to find a cozy spot to stay while they explore.
Sources: Statista, Tourism Tasmania, Airbtics
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.
3) With Hobart’s booming tourism, you can easily profit from short-term rentals
Hobart's tourism industry is booming, and it's fueling a vibrant short-term rental market.
In 2023, Hobart welcomed around 1.6 million domestic overnight visitors, with more than 870,000 coming for holidays. This surge in tourists means there's a big demand for places to stay, and short-term rentals are stepping up to the plate.
By September 2024, the median occupancy rate for these rentals hit 72%, showing they're often booked. The average daily rate was AU$208, and hosts were pulling in about AU$52,000 annually per listing. This indicates that tourists are happy to pay more for the comfort and unique experiences these rentals provide.
Hobart had 1,710 active Airbnb listings by September 2024, reflecting a rise in supply to meet the growing demand. Even with a slight dip in revenue compared to the previous year, the market is still strong, thanks to hosts who are quick to adapt to changes.
This flexibility is key to keeping short-term rentals appealing to visitors. The city's charm and the personalized touch of these accommodations make them a popular choice.
4) Hobart’s low population density provides a peaceful living environment that many people find appealing
Hobart offers a peaceful living environment thanks to its low population density.
With just 125 people per square kilometer, Hobart feels spacious compared to bustling cities like Sydney or Melbourne. This means more room to breathe and a quieter, more relaxed atmosphere.
Fewer people also translate to less traffic congestion, making daily commutes a breeze. Imagine a life with manageable traffic, reducing stress and adding to a laid-back lifestyle—perfect for those weary of big city chaos.
Hobart is rich in green spaces and parks, enhancing its serene vibe. These areas are perfect for unwinding and enjoying nature, making the city even more appealing. The local government is committed to sustainable urban planning, ensuring these green spaces remain intact.
For anyone considering a move, Hobart's charm lies in its balance of urban and natural elements. The city's design prioritizes tranquility, offering a unique blend of city life and nature.
Whether you're looking for a change of pace or a place to settle down, Hobart's lifestyle is a refreshing alternative to the hustle and bustle of larger cities.
Sources: Population Density in Australia, Hobart Property Market Update, Greater Hobart Plan
5) Hobart’s food and wine festivals draw tourists, making it easy to rent out your property short-term
Hobart's food and wine festivals are a magnet for tourists, especially events like the Tasmanian Wine Festival.
These festivals are not just about wine; they feature over 35 vineyards and create a vibrant scene with food, music, and entertainment. This lively atmosphere makes them a major attraction for visitors, boosting the local economy.
When these festivals are in full swing, short-term rentals in Hobart experience a surge. For instance, Airbnb data reveals that typical listings are booked for 263 nights a year, with a median occupancy rate of 72%. This clearly shows the high demand for places to stay during these events.
Property owners in Hobart can earn a tidy sum during festival times. A typical short-term rental can bring in up to AU$52,000 annually, with January being the peak month for profits. This is a golden opportunity for those looking to invest in the local property market.
Moreover, property owners have found ways to boost their income through upsells, which have seen a 500% increase in volume over the past year. This means offering additional services or experiences to guests, enhancing their stay and increasing revenue.
Sources: Airbtics, Enso Connect, City of Hobart
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6) With efficient public transport, suburban homes in the city are more appealing
The city's efficient public transport system has transformed suburban living.
In 2023, the Greater Hobart Household Travel Survey revealed that public transport routes have become more frequent and widespread. This means suburban residents now enjoy reliable and convenient travel options, making these areas more appealing for potential homeowners.
Back in 2021, the Background Paper 3 highlighted that average commute times in Greater Hobart were cut down significantly. With trips averaging just 19 minutes, suburban living offers the perk of shorter, less stressful commutes. The 2023 survey even noted a rise in satisfaction, with many residents opting for buses or walking to work.
Media reports often connect the dots between rising suburban property values and strong public transport links. The City of Hobart's commitment to infrastructure, as detailed in the Hobart Transport Strategy 2024, is a big part of this. Such investments not only boost property values but also make these areas more desirable to buyers.
Sources: Greater Hobart Household Travel Survey, Background Paper 3: Greater Hobart Transportation, New Vision for City Transport
7) Hobart’s focus on sustainability draws in eco-friendly investors
Hobart is becoming a hotspot for eco-conscious investors thanks to its strong focus on sustainability.
The city has poured resources into green infrastructure, like the $600,000 McRobies Outlet Gross Pollutant Trap, which helps manage stormwater and protect local wildlife. Another big project is the $2.15 million New Town Rivulet Estuary Restoration, aimed at boosting ecological health and making the area more accessible to the public.
Hobart is also seeing a boom in eco-friendly housing. The city is approving more medium-density residential developments, which are designed to be sustainable and cut down on greenhouse gas emissions. This fits perfectly with the Greater Hobart Plan's push for infill development, which encourages a more compact urban layout.
Government incentives are a big draw too. The 2024-25 budget is all about green spaces, with funds set aside for tree planting to enhance air quality and make the city more beautiful. Hobart's strict environmental regulations ensure that any new development sticks to sustainability goals, preserving the city's unique charm while allowing for growth.
Sources: City of Hobart Budget 2024-25, Greater Hobart Plan, City of Hobart Annual Report 2023-24
8) With infrastructure investments, property values are on the rise in Hobart
Investing in infrastructure can significantly boost property values in a city like Hobart.
When the local government pours money into improving transportation, it makes life easier for everyone. Take the Australian Government's hefty $284 million investment in Tasmania's land transport, including Hobart. This isn't just about roads; it's about making the city more accessible and convenient for residents.
Projects like the Hobart Rapid Bus Network and the push to decarbonize the bus fleet are game-changers. With better public transport, people can get around faster and more efficiently. This ease of travel is a huge draw for homebuyers, making areas more appealing and driving up property values.
Looking at the past, there's a clear link between infrastructure spending and rising property prices. The UTAS Southern Campus Transformation is a case in point. It's already had a positive impact on Hobart's property market. As these projects progress, experts are betting on a 3% to 7% increase in property prices by 2025.
Hobart's transformation isn't just about new roads and buses. It's about creating a city where people want to live. With every infrastructure upgrade, the city becomes more attractive, and property values naturally follow suit.
So, if you're thinking about buying property in Hobart, keep an eye on these developments. They're not just improving the city; they're setting the stage for a thriving real estate market.
Sources: PRD Hobart Market Update 2nd Half 2024, Tasmania - Infrastructure Investment Program, Background Paper 3: Greater Hobart Transportation
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.
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- Overview of the current state of the real estate market in Hobart