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 rental market in early 2026 remains one of Australia's tightest, with vacancy at just 0.4% and gross yields averaging around 4.3%.
Whether you're looking at CBD apartments, northern suburb townhouses, or family-area houses, understanding yields and what eats into them is essential before investing.
We constantly update this blog post to reflect the latest data and market shifts.
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.
Insights
- Hobart's 0.4% vacancy rate in December 2025 makes it Australia's tightest capital city rental market, meaning landlords rarely experience long empty periods.
- The gap between high-yield suburbs like Glenorchy (around 5%) and premium areas like Battery Point (around 3.5%) represents nearly 1.5 percentage points of annual return difference.
- Property management fees in Hobart run 7% to 9% of rent plus GST, but with letting fees and admin charges, the real cost often reaches 10% to 11% annually.
- Apartments in Hobart deliver gross yields of 4.4% to 5.0%, outperforming detached houses at 3.6% to 4.4% due to lower purchase prices.
- The approved Macquarie Point stadium targeting 2029 could lift rents in nearby suburbs like New Town and West Hobart as construction and event-related demand increase.
- Tasmania's land tax uses a bracketed structure from July 2025, and investors with multiple properties should watch for aggregation rules that can push them into higher brackets.
- A realistic net yield in Hobart sits around 3.0%, meaning investors lose roughly 1.3 percentage points to costs like rates, insurance, management, and maintenance.
- Hobart's older housing stock tends to have higher maintenance costs, often requiring 1% to 1.5% of property value annually for upkeep.
What are the rental yields in Hobart as of 2026?
What's the average gross rental yield in Hobart as of 2026?
As of early 2026, the average gross rental yield in Hobart sits at approximately 4.3%, meaning a A$700,000 property (around US$455,000 or €420,000) would typically generate about A$30,000 per year in rent before expenses.
Most Hobart residential properties fall within a gross yield range of 3.5% to 5.0%, depending on suburb, property type, and condition.
Hobart's 4.3% average outperforms the national average for Australian capitals, partly because property prices remain more accessible than Sydney or Melbourne while rents have climbed steadily.
The single most important factor driving Hobart's yields is the extremely tight 0.4% vacancy rate, which creates strong upward pressure on rents.
What's the average net rental yield in Hobart as of 2026?
As of early 2026, the average net rental yield in Hobart is approximately 3.0%, with most investment properties falling within 2.6% to 3.4% depending on cost structures.
Hobart landlords typically see gross yield reduced by 1.0 to 1.5 percentage points once ongoing costs are factored in, consistent with other Australian markets.
The expenses that most significantly reduce gross yield in Hobart are property management fees (7% to 9% plus GST) and council rates, which together can consume 10% to 15% of annual rental income.
The 2.6% to 3.4% net yield range reflects variations in land tax, insurance premiums for older properties, and reletting frequency, since each tenant change typically costs around one week's rent.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market 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 yield is considered "good" in Hobart in 2026?
In Hobart's early 2026 market, a gross rental yield of 4.5% to 5.0% is generally considered "good" by local investors, sitting comfortably above the 4.3% city average.
The threshold separating average from high-performing properties is around 4.8% gross yield, with anything above 5.0% considered very strong but often coming with trade-offs like older stock or less desirable locations.
How much do yields vary by neighborhood in Hobart as of 2026?
As of early 2026, gross rental yields across Hobart span from about 3.2% in premium lifestyle suburbs to around 5.2% in value-oriented areas, a spread of roughly 2 percentage points.
The highest-yield neighborhoods are in the northern suburbs and Glenorchy corridor, including Glenorchy, Moonah, Lutana, Claremont, Berriedale, and Bridgewater, where lower purchase prices push yields toward 4.8% to 5.2%.
The lowest-yield areas are premium lifestyle suburbs close to the CBD and river, such as Battery Point, Sandy Bay, West Hobart, and South Hobart, where strong buyer demand compresses yields to 3.2% to 3.8%.
Yields vary dramatically because property prices in desirable suburbs reflect lifestyle premiums that tenants aren't willing to pay proportionally higher rents for.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Hobart.
How much do yields vary by property type in Hobart as of 2026?
As of early 2026, gross rental yields in Hobart range from about 3.6% for detached houses up to around 5.0% for apartments, with townhouses and villas at 4.0% to 4.6%.
Apartments and units deliver the highest average gross yield at 4.4% to 5.0%, because lower purchase prices make the rent-to-price math more favorable.
Detached houses deliver the lowest yield at 3.6% to 4.4%, particularly in blue-chip suburbs where owner-occupier demand drives prices above rental market support.
The key reason yields differ is that rent doesn't scale linearly with price: a house costing twice as much as a unit rarely commands twice the weekly rent.
By the way, you might want to read the following:
What's the typical vacancy rate in Hobart as of 2026?
As of early 2026, Hobart's residential vacancy rate sits at approximately 0.4%, making it Australia's tightest capital city rental market with only around 124 dwellings available.
While citywide vacancy is extremely low, inner-city apartments occasionally see 0.5% to 0.8% during seasonal shifts, while family suburbs often run even tighter.
The main factor keeping vacancy so low is limited new rental supply combined with persistent population pressure from interstate migration that outpaces available housing.
Hobart's 0.4% is dramatically lower than the national average of 1.0% to 1.5%, giving landlords significantly more pricing power.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Hobart.
What's the rent-to-price ratio in Hobart as of 2026?
As of early 2026, Hobart's average rent-to-price ratio is approximately 0.36% per month (4.3% annually), meaning every A$100,000 of property value generates around A$4,300 per year in rent before costs.
A ratio above 0.35% monthly is considered favorable for buy-to-let investors in Hobart; since this equals gross rental yield, hitting this threshold means competitive cash flow relative to purchase price.
Hobart's ratio compares favorably to Sydney and Melbourne (often below 0.30%), though it falls short of some regional centers where lower prices push ratios above 0.45%.
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.
Which neighborhoods and micro-areas in Hobart give the best yields as of 2026?
Where are the highest-yield areas in Hobart as of 2026?
As of early 2026, the highest-yield neighborhoods are in the northern suburbs and Glenorchy corridor, with Glenorchy, Moonah, and Bridgewater consistently delivering the strongest returns.
In these areas, including Lutana, Claremont, and Berriedale, investors typically expect gross yields of 4.8% to 5.2%, notably above Hobart's 4.3% average.
These high-yield suburbs share comparatively lower purchase prices combined with steady renter demand from working families needing affordable housing with reasonable commute access.
You'll find a much more detailed analysis of the areas with high profitability potential in our property pack covering the real estate market in Hobart.
Where are the lowest-yield areas in Hobart as of 2026?
As of early 2026, the lowest-yield neighborhoods are prestigious inner-south lifestyle suburbs: Battery Point, Sandy Bay, and West Hobart consistently show the most compressed returns.
In these premium areas, gross yields typically range from 3.2% to 3.8%, well below Hobart's average.
Yields are compressed because property prices reflect strong owner-occupier demand for heritage character, waterfront proximity, and walkable amenities that tenants won't pay proportionally higher rents for.
Buying a property in a low-yield area is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Hobart.
Which areas have the lowest vacancy in Hobart as of 2026?
As of early 2026, the lowest-vacancy areas include inner-ring family suburbs like New Town, Lenah Valley, and Mount Stuart, plus commute-friendly suburbs like Moonah and Glenorchy where tenant competition is fiercest.
In these areas, rental properties often experience near-zero effective vacancy, with landlords receiving multiple applications within days and achieving one to two week turnovers.
The main demand driver is the combination of family-friendly housing, practical CBD commute times, and relative affordability compared to premium inner-south alternatives.
The trade-off: while occupancy is virtually guaranteed, gross yields in areas like Moonah or New Town tend to sit closer to market average rather than the higher returns in value suburbs further out.
Which areas have the most renter demand in Hobart right now?
The top three neighborhoods with strongest renter demand are the CBD and Battery Point for lifestyle seekers, Moonah and New Town for value-conscious commuters, and Bellerive and Howrah on the Eastern Shore for families wanting space.
Young professionals and hospitality workers dominate inner-city interest, while established families and downsizers fuel demand in middle-ring suburbs like New Town and Bellerive.
In these high-demand areas, quality listings typically receive multiple applications within the first week and are leased within 7 to 14 days.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Hobart.
Which upcoming projects could boost rents and rental yields in Hobart as of 2026?
As of early 2026, the three major projects expected to boost rents are the Macquarie Point stadium (approved December 2025 for 2029), the Bridgewater Bridge completing final works through mid-2026, and Hobart City Deal transit initiatives.
The CBD, New Town, and West Hobart should benefit from stadium-related demand, while Bridgewater, Granton, and Brighton will see improved accessibility boosting rental appeal.
Investors in directly affected suburbs might realistically expect rent growth of 5% to 10% above citywide trends over three to five years as these projects create jobs and improve transport links.
You'll find our latest property market analysis about Hobart here.
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What property type should I buy for renting in Hobart as of 2026?
Between studios and larger units in Hobart, which performs best in 2026?
As of early 2026, smaller units like studios and one-bedrooms in Hobart deliver higher gross yields, but two-bedrooms often outperform on net yield and stability due to lower tenant turnover.
Studios and one-beds typically achieve 4.5% to 5.0% gross (A$15,000 to A$20,000 annually / US$10,000 to US$13,000 / €9,000 to €12,000), while two-beds sit at 4.0% to 4.5% (A$20,000 to A$25,000 / US$13,000 to US$16,000 / €12,000 to €15,000).
Smaller units show higher gross yields because rent per square meter is higher for compact properties, making entry price yield math more favorable.
However, two-bedrooms targeting families or couples who stay longer can be better investments, since avoiding A$600 reletting fees (US$390 / €360) every one to two years makes net returns more competitive.
What property types are in most demand in Hobart as of 2026?
As of early 2026, the most in-demand property type in Hobart's rental market is the affordable detached house or townhouse in commute-friendly suburbs.
The top three by tenant demand are: three-bedroom houses in middle-ring suburbs, well-located two-bedroom apartments near CBD or transport, and townhouses offering house-like space with lower maintenance.
Families and couples dominate the renter population, needing practical, livable space at affordable price points rather than ultra-compact or ultra-premium options.
Large luxury houses in premium suburbs like Sandy Bay are currently underperforming in demand, as rental asking prices exceed what most tenants can pay.
What unit size has the best yield per m² in Hobart as of 2026?
As of early 2026, units between 45 and 70 square meters deliver the best gross rental yield per m² in Hobart, corresponding to well-designed studios through compact two-bedrooms.
For this optimal size, typical gross yield per m² is around A$7 to A$9 per week (US$4.50 to US$5.85 / €4.20 to €5.40), compared to below A$5 for larger properties.
Smaller units outperform because tenants pay for functionality and location rather than pure floor space, so doubling apartment size doesn't double rent.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Hobart.
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 costs cut my net yield in Hobart as of 2026?
What are typical property taxes and recurring local fees in Hobart as of 2026?
As of early 2026, annual council rates for a typical Hobart rental apartment cost approximately A$1,800 to A$2,500 (US$1,170 to US$1,625 / €1,080 to €1,500), calculated using a general rate applied to capital value.
Landlords must also budget for land tax, which from July 2025 follows brackets based on total land value and can range from a few hundred dollars to several thousand for portfolios with aggregated values.
Combined, these taxes and fees typically represent 8% to 15% of gross rental income, depending on the property's capital and land values relative to rental returns.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Hobart.
What insurance, maintenance, and annual repair costs should landlords budget in Hobart right now?
Annual landlord insurance in Hobart costs approximately A$1,200 to A$1,800 (US$780 to US$1,170 / €720 to €1,080), covering building, liability, and loss of rent protection.
The recommended maintenance and repair budget is 0.8% to 1.5% of property value; for a A$600,000 property, that's A$4,800 to A$9,000 per year (US$3,120 to US$5,850 / €2,880 to €5,400).
The expense that most catches Hobart landlords off guard is weather-related exterior maintenance, as many older weatherboard homes require periodic painting, gutter repairs, and roof attention.
Total annual budget for insurance, maintenance, and repairs should be around A$6,000 to A$11,000 (US$3,900 to US$7,150 / €3,600 to €6,600), with older properties often exceeding this.
Which utilities do landlords typically pay, and what do they cost in Hobart right now?
In most Hobart long-term rentals, tenants pay electricity and usage-based utilities, while landlords are typically responsible for fixed water and sewerage charges depending on lease structure.
For landlord-paid utilities, monthly cost is usually A$80 to A$150 (US$52 to US$98 / €48 to €90) when covering fixed water and sewerage, varying based on TasWater's charging structure.
What does full-service property management cost, including leasing, in Hobart as of 2026?
As of early 2026, full-service property management in Hobart costs 7% to 9% of monthly rent plus GST; for A$550/week rent (A$2,383/month), that's around A$165 to A$235 monthly (US$107 to US$153 / €99 to €141).
Letting fees add approximately one week's rent plus GST per new tenant, roughly A$600 to A$700 (US$390 to US$455 / €360 to €420) per tenancy changeover.
What's a realistic vacancy buffer in Hobart as of 2026?
As of early 2026, Hobart landlords should set aside approximately 4% of annual rental income as a vacancy buffer, accounting for gaps during tenant changeovers and minor repair periods.
This translates to roughly two weeks of vacancy per year, realistic even in a 0.4% vacancy market since individual properties still experience brief empty periods between leases.
Buying real estate in Hobart can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
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 |
|---|---|---|
| ABS - Residential Property Price Indexes | Australia's official statistics agency and most-cited national dataset for dwelling prices. | We used it to anchor Hobart home costs for yield calculations and as a reality check against private price series. |
| ABS - Consumer Price Index | Official inflation measure documenting how rents are measured at scale. | We used it to support rent direction around early 2026 and explain why rent data differs between sources. |
| SQM Research - National Vacancy Rates (Dec 2025) | Long-running Australian property data provider with published, widely-referenced methodology. | We used it for Hobart's vacancy rate, rent growth signals, and to set realistic vacancy buffers in net-yield math. |
| SQM Research - Hobart Vacancy Dashboard | Primary dashboard behind SQM's Hobart-specific vacancy series. | We used it to validate vacancy methodology and cross-check tightness trends over time. |
| NAB - Hobart Property Market Insights | Major Australian bank publishing structured market research with established data inputs. | We used it as our primary source for headline gross yields and to compare Hobart to national benchmarks. |
| Domain - Rental Report (Sep 2025) | Major Australian property portal with consistent, widely-quoted reporting series. | We used it to contextualize rent levels and momentum before January 2026 as a second private-sector lens. |
| ABC News - Macquarie Point Stadium Approval | National public broadcaster with strong editorial standards and document-based reporting. | We used it to identify a major demand catalyst affecting nearby rents and in the upcoming projects section. |
| City of Hobart - Rates and Charges | Local government source for council rates, one of the biggest recurring landlord costs. | We used it to ground council rates in net yield calculations and explain how rates are calculated. |
| State Revenue Office Tasmania - Land Tax Rates | Official state revenue authority; land tax is a core investor holding cost. | We used it to model land tax in net yield and highlight aggregation rules for multi-property owners. |
| Aurora Energy - Tasmanian Energy Prices | Tasmania's main retailer explaining regulated standing offers and electricity bill drivers. | We used it to clarify electricity cost drivers and typical landlord-vs-tenant payment patterns. |
| Office of the Tasmanian Economic Regulator | Regulator overseeing key regulated prices affecting Tasmanian household bills. | We used it as the backstop authority behind regulated pricing references. |
| TasWater - Water and Sewerage Charges | State-wide water utility and primary source for water charge structures. | We used it to explain water/sewerage charges and landlord-vs-tenant cost allocation. |
| New Bridgewater Bridge Project | Official Tasmanian Government project page with dated construction milestones. | We used it as an infrastructure example affecting northern suburb accessibility and rental appeal. |
| Hobart City Deal | Council source describing multi-level government partnership and key development projects. | We used it to identify pipeline projects affecting renter demand patterns and keep the list grounded in official plans. |
| DHA - Property Management Fee Comparison | Government housing organisation publishing structured management fee comparison reports. | We used it to sanity-check property management fees and support all-in management cost assumptions. |
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