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 in 2026 is in a phase of steady recovery, with modest price growth, extremely tight rental conditions, and unique challenges for foreign buyers navigating new investment restrictions.
In this guide, we cover the current housing prices in Hobart, how long properties take to sell, which neighborhoods are improving fastest, and what foreign buyers need to know before purchasing.
We constantly update this blog post to reflect the latest market data and trends.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Hobart.
How's the real estate market going in Hobart in 2026?
What's the average days-on-market in Hobart in 2026?
As of early 2026, the estimated average days-on-market for residential properties in Hobart is around 52 days, which means most homes take roughly 7 to 8 weeks to sell from listing to contract.
The realistic range that covers most typical Hobart listings falls between 35 and 70 days, with well-priced homes in desirable areas like Sandy Bay or Battery Point often selling faster, while properties with issues like poor sun exposure or steep access can sit for 90 days or more.
Compared to one or two years ago, selling times in Hobart have stabilized after the frenzy of 2021 and 2022, and properties now take slightly longer to sell than during the boom, but the market is no longer in decline and conditions feel more balanced for both buyers and sellers.
Are properties selling above or below asking in Hobart in 2026?
As of early 2026, most residential properties in Hobart are selling below their original asking price, with the typical sale-to-asking price ratio sitting around 97%, meaning a home listed at $800,000 would likely sell for around $776,000.
Based on available data, the majority of Hobart properties (roughly 70% or more) sell at or below asking price, with only a smaller share achieving above-asking results, though confidence in exact percentages is moderate because true sale-to-list data is often locked inside agent databases.
The property types and neighborhoods most likely to see bidding wars and above-asking sales in Hobart are tightly held character homes in premium inner suburbs like Battery Point, Sandy Bay, South Hobart, and parts of North Hobart, especially properties with views, good sun exposure, or walkable access to cafes and amenities.
By the way, you will find much more detailed data in our property pack covering the real estate market in Hobart.
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.
What kinds of residential properties can I realistically buy in Hobart?
What property types dominate in Hobart right now?
The estimated breakdown of residential property types available for sale in Hobart is roughly 70% detached houses, with the remainder split between townhouses, units, and apartments, making it a market where standalone homes are far more common than high-density options.
Detached houses represent the largest share of the Hobart property market by a significant margin, which means if you are looking to buy, you will encounter far more standalone homes than apartments or townhouses on most property listings.
Detached houses became so prevalent in Hobart because the city developed with generous land availability, lower population density compared to mainland capitals, and a strong local preference for suburban living with private outdoor space, which shaped the housing stock over decades.
If you want to know more, you should read our dedicated analyses:
Are new builds widely available in Hobart right now?
New-build properties make up a relatively small share of all residential listings currently available in Hobart, estimated at roughly 10% to 15% of the market, which means buyers looking for brand-new homes will have fewer options compared to established properties.
As of early 2026, the neighborhoods in Hobart with the highest concentration of new-build developments include Kingston in the south (which has seen infill and house-and-land packages), parts of the New Town and Glenorchy corridor (where infill projects are common), and select CBD-fringe redevelopment sites where apartment projects have been completed.
Get fresh and reliable information about the market in Hobart
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Which neighborhoods are improving fastest in Hobart in 2026?
Which areas in Hobart are gentrifying in 2026?
As of early 2026, the top neighborhoods in Hobart showing the clearest signs of gentrification are Moonah, parts of Glenorchy, and New Town, where affordability relative to inner suburbs has attracted buyers seeking value while still being close to the city.
The visible changes indicating gentrification in these Hobart areas include the opening of specialty cafes, craft breweries, and renovated shopfronts along Moonah's main strip, increased renovation activity on older weatherboard homes, and a noticeable shift toward younger professionals and families moving in alongside long-term residents.
Price appreciation in these gentrifying Hobart neighborhoods over the past two to three years has been moderate but steady, with Moonah recording house price growth around 4% to 6% annually even while the broader market softened, outperforming many other Hobart suburbs during the same period.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Hobart.
Where are infrastructure projects boosting demand in Hobart in 2026?
As of early 2026, the top areas in Hobart where major infrastructure projects are currently boosting housing demand include the northern corridor near Bridgewater and Brighton, CBD-fringe suburbs near Macquarie Point, and suburbs along planned public transport upgrade routes like New Town and Moonah.
The specific infrastructure projects driving that demand in Hobart include the New Bridgewater Bridge (which opened in June 2025 and improved northern connectivity), the Macquarie Point stadium and urban renewal precinct (a multi-year development now underway), and the Hobart Public Transport Infrastructure Planning initiative focused on rapid bus corridors and ferry terminals.
The estimated timeline for completion of these major Hobart projects varies: the Bridgewater Bridge is already open, the Macquarie Point stadium is expected to take several more years to complete, and public transport planning improvements are rolling out progressively through 2026 and beyond.
The typical price impact on nearby Hobart properties once such infrastructure projects are announced versus completed tends to be gradual, with announcement-phase gains of a few percent often followed by more substantial appreciation of 5% to 15% over the years following project completion, depending on how much the upgrade improves daily commute times or lifestyle amenity.
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.
What do locals and insiders say the market feels like in Hobart?
Do people think homes are overpriced in Hobart in 2026?
As of early 2026, the general sentiment among locals and market insiders is that Hobart homes feel expensive relative to local incomes, but most agree the market is no longer in bubble territory and prices have settled after the sharp corrections of 2023 and 2024.
When arguing homes are overpriced, locals typically cite the fact that median prices remain well above pre-pandemic levels while local wages have not kept pace, and they point to the need for vendor discounting (around 3%) as evidence that buyers have negotiating power and sellers cannot demand peak prices.
Those who believe Hobart prices are fair often argue that the city remains more affordable than Sydney or Melbourne, that rental tightness (with vacancy rates around 0.4%) proves underlying demand is real, and that lifestyle amenities like proximity to nature and a slower pace of life justify a premium.
Hobart's price-to-income ratio remains stretched compared to regional averages but is generally more favorable than Sydney or Melbourne, which helps explain why interstate buyers continue to see Hobart as relatively affordable even when locals feel priced out.
What are common buyer mistakes people regret in Hobart right now?
The most frequently cited buyer mistake that people regret making in Hobart is underestimating how much winter sun exposure matters, because a beautiful home can feel cold, damp, and miserable if it faces south or sits in the shadow of a hill during Tasmania's long winters.
The second most common buyer mistake people mention regretting in Hobart is ignoring slope and access issues, since steep driveways and many stairs are common in the hilly terrain, and these can create daily inconvenience, limit resale appeal, and increase maintenance and insurance costs over time.
If you want to go deeper, you can check our list of risks and pitfalls people face when buying property in Hobart.
It's because of these mistakes that we have decided to build our pack covering the property buying process in Hobart.
Get the full checklist for your due diligence in Hobart
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
How easy is it for foreigners to buy in Hobart in 2026?
Do foreigners face extra challenges in Hobart right now?
The estimated overall difficulty level foreigners face when buying property in Hobart in 2026 is significantly higher than for local buyers, primarily because of strict approval requirements and a temporary ban on purchasing established dwellings that runs from April 2025 to March 2027.
The specific legal restrictions applying to foreign buyers in Hobart include the requirement to obtain approval from the Foreign Investment Review Board (FIRB) via the Australian Taxation Office before purchasing, the current ban on buying established homes unless a limited exception applies, and additional stamp duty surcharges of around 8% that apply on top of standard transfer duties.
The practical challenges foreigners most commonly encounter in Hobart include navigating a market dominated by established homes (which are now largely off-limits), finding the limited new-build stock that foreign buyers can legally purchase, and dealing with longer transaction timelines due to the approval process and remote communication with local agents and solicitors.
We will tell you more in our blog article about foreigner property ownership in Hobart.
Do banks lend to foreigners in Hobart in 2026?
As of early 2026, mortgage financing for foreign buyers in Hobart is available but not universal, with several major banks like Westpac explicitly stating they do not offer residential lending to non-Australian residents, which means foreign buyers often need to shop around or use specialist lenders.
The typical loan-to-value ratios foreign buyers can expect in Hobart range from 60% to 70% (meaning a deposit of 30% to 40% is usually required), and interest rates for foreign borrowers tend to be 0.5% to 1% higher than rates offered to Australian residents due to perceived higher risk.
The documentation and income requirements banks typically demand from foreign applicants in Hobart include verified overseas income statements, employment contracts translated into English, tax returns from the applicant's home country, proof of existing assets, and often a larger cash deposit held in an Australian bank account before settlement.
You can also read our latest update about mortgage and interest rates in Australia.
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.
How risky is buying in Hobart compared to other nearby markets?
Is Hobart more volatile than nearby places in 2026?
As of early 2026, Hobart's price volatility is moderate compared to nearby comparable markets, with the city experiencing sharper swings than larger capitals like Sydney or Melbourne but similar patterns to other smaller Australian cities like Adelaide or Darwin.
Over the past decade, Hobart experienced one of Australia's strongest property booms (with prices roughly doubling between 2016 and 2022), followed by a correction of around 10% to 12% from peak levels, which represents more dramatic swings than the steadier trajectories seen in larger, more liquid markets.
If you want to go into more details, we also have a blog article detailing the updated housing prices in Hobart.
Is Hobart resilient during downturns historically?
Hobart has shown reasonable historical resilience during economic downturns, with property values typically declining less sharply than in larger speculative markets and recovering within a few years, partly because the rental market tends to stay tight even when sales activity slows.
During the most recent major downturn (the post-boom correction from 2022 to 2024), Hobart property prices dropped around 10% to 12% from their March 2022 peak, and recovery has been gradual, with prices now inching back up but still sitting roughly 7% to 9% below peak levels entering 2026.
The property types and neighborhoods in Hobart that have historically held value best during downturns include established houses in premium inner suburbs like Battery Point, Sandy Bay, and South Hobart, where limited supply, strong owner-occupier demand, and desirable lifestyle features provide a buffer against market corrections.
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How strong is rental demand behind the scenes in Hobart in 2026?
Is long-term rental demand growing in Hobart in 2026?
As of early 2026, long-term rental demand in Hobart remains extremely strong, with the city recording one of Australia's lowest vacancy rates at around 0.4%, which means tenants face intense competition for every available property.
The tenant demographics driving long-term rental demand in Hobart include young professionals working in government and healthcare sectors, university students (particularly near Sandy Bay and the University of Tasmania), interstate migrants attracted by lifestyle factors, and families who have been priced out of buying but still want to live in desirable suburbs.
The neighborhoods in Hobart with the strongest long-term rental demand right now include Sandy Bay (driven by university proximity), North Hobart and New Town (popular with young professionals), and inner eastern shore suburbs like Lindisfarne and Bellerive (favored by families seeking good schools and amenities).
You might want to check our latest analysis about rental yields in Hobart.
Is short-term rental demand growing in Hobart in 2026?
Short-term rental operations in Hobart are subject to local council regulations and body corporate rules, and while Tasmania has not implemented the strict statewide restrictions seen in some other Australian jurisdictions, operators should check specific rules in their area and building before committing to an Airbnb strategy.
As of early 2026, short-term rental demand in Hobart remains solid but highly seasonal, with strong occupancy during peak tourism periods (especially summer, MONA festivals like Dark Mofo, and major events) but noticeably softer demand during the cold winter months.
The current estimated average occupancy rate for short-term rentals in Hobart varies significantly by location and season, with well-located properties in areas like Battery Point, Salamanca, and the waterfront achieving 60% to 75% annual occupancy, while less central properties may struggle to exceed 50%.
The guest demographics driving short-term rental demand in Hobart include domestic tourists from mainland Australia seeking nature and food experiences, international visitors attracted by Tasmania's wilderness and cultural scene, and event attendees who flock to the city during MONA festivals and other major happenings.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Hobart.
We made this infographic to show you how property prices in Australia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What are the realistic short-term and long-term projections for Hobart in 2026?
What's the 12-month outlook for demand in Hobart in 2026?
As of early 2026, the estimated 12-month demand outlook for residential property in Hobart is cautiously positive, with steady buyer interest expected for well-priced homes while compromised properties may continue to sit longer on the market.
The key economic and political factors most likely to influence Hobart demand over the next 12 months include Reserve Bank of Australia interest rate decisions (with markets hoping for modest cuts), the continued rollout of infrastructure projects like the Macquarie Point stadium, and any changes to interstate migration patterns that could bring more buyers from mainland capitals.
The forecasted price movement for Hobart over the next 12 months ranges from modest growth of around 2% to 6% depending on which analyst you follow, with major banks like Westpac predicting 2%, NAB forecasting 3.6%, and some independent researchers like SQM Research suggesting gains of 4% to 7% if interest rates fall as expected.
By the way, we also have an update regarding price forecasts in Australia.
What's the 3 to 5 year outlook for housing in Hobart in 2026?
As of early 2026, the estimated 3 to 5 year outlook for housing prices and demand in Hobart is cautiously positive, with most analysts expecting gradual appreciation supported by persistent rental tightness, constrained supply, and ongoing infrastructure investment rather than a return to boom-era growth.
The major development projects and urban plans expected to shape Hobart over the next 3 to 5 years include the Macquarie Point stadium and precinct redevelopment, continued public transport improvements under the Hobart City Deal and Keeping Hobart Moving initiatives, and the broader Treasury Complex renewal that could transform part of the CBD.
The single biggest uncertainty that could alter the 3 to 5 year outlook for Hobart is interest rate trajectory, because if rates stay higher for longer than expected or rise unexpectedly due to inflation concerns, borrowing capacity would decline and buyer demand could soften significantly across the market.
Are demographics or other trends pushing prices up in Hobart in 2026?
As of early 2026, demographic trends are having a moderate but meaningful impact on Hobart housing prices, with population growth and household formation continuing to create demand that outpaces the limited supply of new housing being built.
The specific demographic shifts most affecting Hobart prices include ongoing interstate migration (particularly from Victoria and New South Wales), an aging population that is downsizing but staying local rather than leaving Tasmania, and the formation of smaller households as young adults move out earlier and more people live alone.
The non-demographic trends also pushing Hobart prices include the continued appeal of remote work (which allows mainland workers to relocate for lifestyle reasons), growing tourism and cultural profile (which supports both property values and short-term rental demand), and constrained construction activity that keeps supply tight relative to demand.
These demographic and trend-driven price pressures in Hobart are expected to continue for at least the next 5 to 10 years, particularly because Tasmania's construction pipeline remains constrained and the lifestyle factors attracting interstate buyers show no signs of weakening.
What scenario would cause a downturn in Hobart in 2026?
As of early 2026, the most likely scenario that could trigger a housing downturn in Hobart would be a combination of interest rates staying higher for longer than expected (or rising unexpectedly), a meaningful increase in listings as more sellers enter the market, and any easing of the extremely tight rental vacancy rate that currently supports investor confidence.
The early warning signs that would indicate such a downturn is beginning in Hobart include days-on-market stretching beyond 70 to 90 days consistently, vendor discounting increasing beyond 5%, vacancy rates rising above 1%, and a noticeable uptick in distressed or mortgagee sales appearing on the market.
Based on historical patterns, a potential downturn in Hobart could realistically see prices decline by 10% to 15% from current levels over 12 to 24 months, similar to the correction experienced after the 2022 peak, though the tight rental market would likely prevent a more severe crash by maintaining investor interest and reducing forced selling pressure.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Hobart, we always rely on the strongest methodology we can ... and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| Australian Bureau of Statistics (ABS) | ABS is Australia's official statistics agency, making it the most reliable benchmark for city-level price movements and housing data. | We used it to anchor official price direction for Hobart versus other capitals. We cross-checked its data against Cotality and Domain indices to confirm trend lines align. |
| Cotality (CoreLogic AU) | Cotality is one of Australia's most referenced housing datasets, with transparent methodology for key metrics like time-on-market and price indices. | We used it as the main days-on-market benchmark for Hobart. We then adjusted to an early 2026 estimate using interest rate context and listings tightness. |
| Domain Research | Domain is a long-running national property research publisher with transparent, regularly updated reporting on prices and rents. | We used it to pin recent median price levels and quarterly momentum for Hobart. We cross-checked direction against Cotality so we're not relying on one dataset. |
| Reserve Bank of Australia (RBA) | The RBA is the source of truth for Australia's policy rate, which directly flows into mortgage rates and borrowing capacity. | We used it to frame borrowing conditions in early 2026. We paired it with mainstream reporting to reflect what households actually pay and what markets expect next. |
| Australian Taxation Office (ATO) | The ATO administers foreign investment approval processes for residential property and publishes official policy on restrictions. | We used it to explain the current ban on established dwelling purchases by foreign buyers. We paired it with FIRB guidance to clarify definitions and exceptions. |
| SQM Research | SQM Research provides widely cited vacancy rate data and rental market analysis used by industry professionals across Australia. | We used it to establish Hobart's extremely tight vacancy rate of around 0.4%. We cross-referenced with Domain to confirm rental market conditions. |
| Tasmania Treasury | Tasmania Treasury publishes official state government population projections and building approvals commentary used for planning. | We used it for the 3 to 5 year demographic backdrop. We cross-checked direction with ABS regional population releases to keep projections realistic. |
| OpenAgent | OpenAgent aggregates real estate data and market commentary from multiple sources, providing accessible insights for buyers and sellers. | We used it for vendor discounting estimates and bank price forecasts. We treated it as a synthesis source and verified key claims against primary data. |
| New Bridgewater Bridge Project | This is the official project website with status updates, opening dates, and remaining works for a major infrastructure upgrade. | We used it to identify a concrete completed connectivity upgrade affecting northern corridor dynamics. We linked it to areas like Bridgewater and Brighton. |
| ABC News | ABC provides detailed, sourced reporting on major local projects and policy developments with editorial independence. | We used it as evidence that Macquarie Point is a real urban renewal catalyst with a multi-year horizon. We translated that into which nearby areas may see demand spillovers. |
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