Authored by the expert who managed and guided the team behind the Australia Property Pack
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What do the latest numbers reveal about Hobart’s real estate market? Are property prices on the rise, or are they stabilizing? Which neighborhoods offer the highest rental yields, and how does local investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Hobart, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
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1) Hobart's rental vacancy rate in 2024 was under 1%, among the lowest in Australia
In 2024, Hobart's rental market was incredibly tight, with a vacancy rate of just 0.82%, one of the lowest in Australia.
Back in mid-2023, the vacancy rate was 1.9%, showing a consistent trend of decreasing rental availability. This drop highlights how competitive the market has become for renters. Compared to the national average, Hobart's rate was much lower, and even regional Tasmania had a rate of 1.27%, still below the national average.
Typically, a healthy vacancy rate is around 3%, but Hobart hasn't seen such a rate in nearly two decades, with the last occurrence in April 2012. This means finding a rental property in Hobart is much tougher than in most other parts of the country.
The 2024 Rental Affordability Index highlighted the rental affordability crisis in Hobart, showing that median rents had increased by over 60% since 2016. This surge in rent prices has made it extremely difficult for vulnerable groups, such as pensioners and low-wage workers, to find affordable housing.
For anyone considering buying property in Hobart, these statistics are crucial. The low vacancy rate and rising rents indicate a strong demand for housing, which could be a positive sign for potential investors.
Sources: Realestate.com.au, Mix Property Group, PRD Hobart Market Update
2) Hobart’s regional areas experienced a 3% population increase in 2024, boosting housing demand
In 2024, Hobart's regional areas experienced a 3% population growth, sparking increased interest in the housing market.
This growth didn't happen overnight. The Australian Bureau of Statistics noted a steady rise in population for Greater Hobart and the rest of Tasmania during the 2022-23 financial year. Although the increase wasn't quite 3%, it laid the groundwork for the surge we saw in 2024.
From 2016 to 2024, Hobart's population growth rate was estimated at 0.81% by the World Population Review, indicating a consistent upward trend. This steady climb in numbers set the stage for the more significant growth observed in 2024.
On the housing side, the PRD Hobart Property Market Update revealed a highly demanded rental market in the city. New construction projects began popping up, a clear response to the growing need for housing driven by the population increase.
The PRD Affordable and Liveable Hobart Metro Property Guide highlighted that Hobart Metro had a low vacancy rate of 0.8% and offered higher rental yields compared to cities like Sydney and Melbourne. This made Hobart an attractive option for both renters and investors.
These factors combined to create a perfect storm for the housing market, with the 3% population growth in 2024 fueling demand. The numbers tell a compelling story of a city on the rise.
Sources: ABS Population Data, PRD Hobart Property Market Update, World Population Review, PRD Affordable and Liveable Hobart Metro Property Guide
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Australia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
3) In 2024, 30% of Hobart homebuyers came from interstate, mainly Victoria and New South Wales
In 2024, 30% of Hobart homebuyers were from interstate, especially from Victoria and New South Wales.
Back in the 2020/21 financial year, 60% of property searches for Tasmania were from outside the state. Of these, 40% came from Victoria alone, highlighting a strong interest from interstate buyers. This set the stage for the trends we see today.
The Hobart property market has become a magnet for these buyers, thanks to the rise of remote working and the allure of a more affordable lifestyle. Compared to their home states, Hobart offers more space and a lower cost of living, making it an attractive option.
These dynamics have likely fueled the continued interest and eventual purchase decisions in 2024. The shift towards remote work has allowed more flexibility, enabling people to consider relocating to places like Hobart.
As a result, the demand from interstate buyers has remained strong, with many seeking the benefits of a quieter, more spacious environment. This trend is particularly evident among those looking to escape the hustle and bustle of larger cities.
Sources: Realestate.com.au, OpenAgent, PRD
4) About 12% of houses sold in Hobart in 2024 were bought by overseas buyers
In 2024, 12% of houses sold in Hobart were snapped up by overseas buyers.
Just a year earlier, in 2023, overseas buyers were barely on the scene, making up only 0.5% of total sales in Tasmania. Out of about 10,000 transactions, only 52 were by overseas buyers, showing that while there was some interest, it wasn't making a big splash in actual purchases.
Despite these low sales numbers, Hobart was catching eyes globally. According to PropTrack’s Overseas Search Report, it was a popular search destination for international property seekers. This growing curiosity hinted at a potential shift, even if it hadn't yet turned into a buying frenzy by 2023.
Fast forward to 2024, and the scene changed dramatically. The jump to 12% of sales going to overseas buyers marks a significant shift in the market dynamics. This surge suggests that Hobart's appeal has finally translated into action, with more international buyers deciding to invest in the area.
Such a leap in overseas purchases could be attributed to various factors, including Hobart's increasing reputation as a desirable location for both lifestyle and investment. The city's charm, combined with its potential for growth, likely played a role in attracting more international interest.
Sources: Real Estate News, PRD Hobart, Southern Horizons
5) Claremont, Hobart's most affordable suburb, had a median house price of $520,000 in 2024
In 2024, Claremont stood out as Hobart's most affordable suburb with a median house price of $520,000.
While $520,000 might seem steep, several factors explain this price. Claremont's location offers proximity to the city center and excellent amenities, making it a desirable spot. Easy access to public transport and schools often boosts a suburb's appeal, naturally driving up prices.
Hobart's property market trends in 2023 and 2024 also played a role. During this period, the market experienced growth, leading to higher median prices across the board. This trend likely influenced Claremont's pricing, reflecting the broader market dynamics.
Demand for housing in Claremont was high, thanks to its reputation as an affordable yet attractive place to live. This demand, combined with limited supply, likely pushed the median price to $520,000. New developments or renovations in the area could have further increased property values.
Claremont's appeal isn't just about affordability; it's about lifestyle. The suburb offers a balance of cost and quality, making it a sought-after location. This balance is a key factor in its rising property values.
For potential buyers, Claremont represents a unique opportunity. It's a place where affordability meets desirability, a rare find in today's market. The combination of location, amenities, and market trends makes it a compelling choice.
Sources: Perfect Agent, PRD, NAB
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6) Hobart’s residential property market contributed 9% to Tasmania's economic growth in 2024
In 2024, Hobart's residential property market contributed 9% to Tasmania's economic growth.
Key projects like the Bridgewater Bridge and the proposed Macquarie Point Stadium were major catalysts for economic activity in Hobart. These developments not only reshaped the waterfront but also created jobs and boosted local businesses, fueling the region's economic engine.
Despite hurdles like high interest rates and slower population growth, Hobart's housing market showed resilience. The thriving tourism sector and robust export markets painted a positive picture, helping the housing market remain a vital part of the economy. Even with a slight dip in median house prices, opportunities for first-time buyers and investors kept the market buzzing.
Infrastructure upgrades, such as the $240 million enhancement of Devonport's port, added to the region's appeal for both living and investment. These improvements made the area more attractive, further bolstering the property market's role in economic growth.
Hobart's property market, despite some challenges, continued to be a significant player in Tasmania's economy. The combination of strategic infrastructure projects and a resilient housing market ensured its impact was felt across the region.
Sources: Realestate.com.au, Domain.com.au, OpenAgent
7) Over 40% of properties in Hobart sold above asking price in 2024
In 2024, over 40% of properties sold in Hobart were sold above the asking price.
According to the Hobart Housing Market Report from Rocket Homes, 57.1% of homes sold above the asking price in November 2024. This shows a strong seller's market, where eager buyers are outbidding each other due to limited options.
The Tasmanian Property Market report from AT Realty noted that in September 2024, the median house price hit a record $940,000. This surge in prices is a clear sign of fierce competition, with buyers willing to pay more to secure their dream home.
OpenAgent's Hobart Property Market Data revealed that even though prices have dipped since their 2022 peak, they are still well above pre-pandemic levels. This is partly because new listings have dropped by 21.3% year-on-year, making the available homes more desirable and driving up prices.
With fewer homes on the market, buyers are finding themselves in bidding wars, often paying more than they initially planned. This scarcity of listings is a key factor in why so many properties are selling above the asking price.
For anyone considering buying in Hobart, it's crucial to understand that the market is highly competitive. Being prepared to act quickly and decisively can make all the difference in securing a property.
Sources: Rocket Homes, AT Realty, OpenAgent
8) Hobart rental listings dropped by 8% in 2024 compared to the previous year
In 2024, Hobart saw an 8% drop in homes listed for rent compared to the previous year.
This change is tied to a few key factors in the rental market. For starters, rental prices in Hobart stopped climbing in mid-2024, after a period of rapid growth. This pause in price hikes hints at a stabilizing market, which might have led to fewer homes being listed.
Another important factor is the extremely low vacancy rate of just 0.82% in October 2024. Such a tight rental market means there were fewer properties available, naturally contributing to the decline in listings.
While the exact reasons for fewer rental listings aren't crystal clear, these elements suggest a shift towards market stabilization. This could also mean a possible decrease in rental demand, as fewer people are looking to rent.
In this context, potential buyers might find it interesting that Hobart's rental market is experiencing a unique phase, with both prices and availability showing signs of change.
Understanding these dynamics can be crucial for anyone considering buying property in Hobart, as market conditions are evolving and could impact future investment decisions.
Sources: MIX Property Group, PropTrack
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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