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 offers foreign buyers a unique combination of tight rental conditions and steady price recovery, but new regulations have fundamentally changed what you can actually purchase.
Since early 2026, foreign buyers face a ban on established dwellings and are now channeled toward new builds, which reshapes where and how you should be looking.
We constantly update this blog post to reflect the latest market shifts, regulatory changes, and neighborhood trends across Greater Hobart.
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.
What's the Current Real Estate Market Situation by Area in Hobart?
Which areas in Hobart have the highest property prices per square meter in 2026?
As of early 2026, the three most expensive areas in Hobart by estimated price per square meter are Battery Point, lower Sandy Bay, and the ridge streets of West Hobart, where heritage character and waterfront proximity create intense competition for limited stock.
In these premium Hobart neighborhoods, typical prices range from around A$7,000 to A$14,000 per square meter for houses, with Battery Point's compact heritage homes sometimes reaching the top end of that range due to their Salamanca adjacency and water views.
Each of these expensive Hobart areas commands high prices for distinct reasons:
- Battery Point: Tiny heritage stock, strict planning limits, and walkable access to Salamanca's restaurants and waterfront.
- Lower Sandy Bay: Prestigious school catchments, university proximity, and unobstructed views toward the Derwent River.
- West Hobart ridge streets: Elevated city and water outlooks with very low turnover and character home appeal.
Which areas in Hobart have the most affordable property prices in 2026?
As of early 2026, the most affordable areas in Hobart for property buyers are Bridgewater, Gagebrook, Risdon Vale, and Clarendon Vale, where entry prices sit well below the Greater Hobart median.
In these lower-priced Hobart suburbs, typical prices range from around A$2,500 to A$4,500 per square meter, making them accessible for budget-conscious investors seeking rental income rather than prestige.
However, buyers should understand the trade-offs: Bridgewater and Gagebrook carry higher socio-economic volatility that can affect tenant stability, while Risdon Vale and Clarendon Vale have significant street-by-street variation where choosing the wrong pocket can mean slower capital growth even if yields look attractive on paper.
You can also read our latest analysis regarding housing prices 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.
Which Areas in Hobart Offer the Best Rental Yields?
Which neighborhoods in Hobart have the highest gross rental yields in 2026?
As of early 2026, the Hobart neighborhoods delivering the highest gross rental yields are Glenorchy (around 4.8% to 6.2%), Moonah (around 4.5% to 5.8%), Goodwood and Lutana (around 4.8% to 6.0%), and New Town for units (around 4.0% to 5.2%).
Across Hobart as a whole, typical gross rental yields for investment properties range from about 3.5% in premium inner suburbs like Battery Point up to 6% or more in the northern corridor where buy-in prices are lower.
These top-yielding Hobart neighborhoods deliver higher returns for specific reasons:
- Glenorchy: Value pricing near an activity center plus indirect benefits from northern corridor transport upgrades.
- Moonah: Gentrifying suburb with hospital and retail workers creating a large, stable tenant pool nearby.
- Goodwood and Lutana: Near-CBD positioning at lower price points creates favorable rent-to-price ratios.
- New Town (units): Strong school catchments and services attract reliable long-term tenants willing to pay solid rents.
Finally, please note that we cover the rental yields in Hobart here.
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Which Areas in Hobart Are Best for Short-Term Vacation Rentals?
Which neighborhoods in Hobart perform best on Airbnb in 2026?
As of early 2026, the Hobart neighborhoods performing best for short-term rentals are Sullivan's Cove and the CBD fringe, North Hobart, lower Sandy Bay, and select pockets of Bellerive, where tourism foot traffic and lifestyle appeal drive consistent bookings.
Top-performing Airbnb properties in these Hobart neighborhoods typically generate monthly revenues ranging from A$3,000 to A$6,000 depending on property size, seasonal demand, and how close you are to key attractions like Salamanca Market.
Each of these Hobart short-term rental hotspots outperforms for distinct reasons:
- Sullivan's Cove and CBD fringe: Walkable access to Salamanca, restaurants, and weekend events drives high occupancy.
- North Hobart: The restaurant and nightlife strip attracts guests wanting a local vibe with quick CBD access.
- Lower Sandy Bay: Works well for longer family stays and academic or hospital visitors near UTAS.
- Bellerive: Water views and a relaxed Eastern Shore base appeal to guests with cars seeking quieter stays.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Hobart.
Which tourist areas in Hobart are becoming oversaturated with short-term rentals?
The Hobart areas showing signs of short-term rental oversaturation are the inner CBD fringe around Salamanca and Battery Point, plus some Sandy Bay apartment clusters where building rules permit holiday letting.
In these oversaturated Hobart pockets, you will find high concentrations of "entire home" listings competing for the same weekend-trip guests, which pushes nightly rates down and makes it harder for new hosts to stand out.
The clearest sign of oversaturation in these Hobart areas is not just listing density but also the active regulatory debate: Tasmania is considering short-stay levies (reported in late 2025), and City of Hobart already applies differential rates and planning scrutiny to visitor accommodation, meaning your profit margin needs to account for potential rule changes.
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 Areas in Hobart Are Best for Long-Term Rentals?
Which neighborhoods in Hobart have the strongest demand for long-term tenants?
The Hobart neighborhoods with the strongest demand for long-term tenants are New Town, North Hobart, Moonah, and Lindisfarne, where employment hubs, schools, and transport links create reliable tenant pools year-round.
In these high-demand Hobart suburbs, properties typically rent within one to three weeks of listing, and vacancy rates remain exceptionally low by Australian standards, often below 1%.
Each of these Hobart neighborhoods attracts a distinct tenant profile:
- New Town: Families seeking quality school catchments and professional couples wanting suburban convenience.
- North Hobart: Hospitality workers, health sector employees, and young professionals drawn to the dining scene.
- Moonah: Value-focused renters including hospital staff and service workers who need quick CBD access.
- Lindisfarne: Families preferring the Eastern Shore lifestyle with ferry and bus connections to the city.
What makes these Hobart neighborhoods especially attractive to long-term tenants is the combination of walkable services, reliable public transport, and proximity to major employers like Royal Hobart Hospital, which reduces commute stress and tenant turnover.
Finally, please note that we provide a very granular rental analysis in our property pack about Hobart.
What are the average long-term monthly rents by neighborhood in Hobart in 2026?
As of early 2026, average long-term monthly rents in Hobart range from around A$1,800 in outer northern suburbs like Bridgewater up to A$4,800 or more for character houses in Battery Point, with most middle-ring suburbs falling between A$2,200 and A$3,500 per month.
In the most affordable Hobart neighborhoods like Glenorchy and Bridgewater, entry-level apartments typically rent for A$1,800 to A$2,400 per month, making them accessible for budget-conscious tenants.
In average-priced Hobart neighborhoods like Moonah, New Town, and Lindisfarne, mid-range apartments and smaller houses typically rent for A$2,300 to A$3,400 per month, reflecting solid demand without premium pricing.
In Hobart's most expensive neighborhoods like Battery Point, Sandy Bay, and West Hobart, high-end properties typically rent for A$3,000 to A$4,800 per month, with character homes and water views commanding the top of that range.
You may want to check our latest analysis about the rents in Hobart here.
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Which Are the Up-and-Coming Areas to Invest in Hobart?
Which neighborhoods in Hobart are gentrifying and attracting new investors in 2026?
As of early 2026, the Hobart neighborhoods showing the strongest gentrification signals and investor interest are Moonah, Goodwood, select pockets of Glenorchy, and Warrane on the Eastern Shore.
These gentrifying Hobart suburbs have recently experienced annual price appreciation in the range of 5% to 8%, outpacing some established inner suburbs as buyers seek better value with improving amenity.
Moonah in particular has seen visible cafe and retail uplift alongside its near-city convenience, while Glenorchy benefits from activity-center investment and transport improvements that make it more attractive to young professionals priced out of inner suburbs.
Which areas in Hobart have major infrastructure projects planned that will boost prices?
The Hobart areas most likely to see infrastructure-driven price boosts are the northern corridor suburbs from Bridgewater through Glenorchy, plus the CBD and waterfront fringe around Macquarie Point.
The New Bridgewater Bridge opened to traffic in June 2025 with further works continuing through mid-2026, which is already improving commute times and making suburbs like Bridgewater, Granton, Austins Ferry, Claremont, and Glenorchy more attractive to buyers seeking value with better city access.
Historically, Hobart areas benefiting from major transport upgrades have seen price increases of 10% to 20% over the three to five years following project completion, though the Macquarie Point stadium project remains uncertain and represents both upside potential and volatility risk for nearby CBD-fringe properties.
You'll find our latest property market analysis about Hobart here.
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.
Which Areas in Hobart Should I Avoid as a Property Investor?
Which neighborhoods in Hobart with lots of problems I should avoid and why?
The Hobart neighborhoods that generally require extra caution for foreign investors are Gagebrook, parts of Bridgewater, Risdon Vale, Clarendon Vale, and any CBD-fringe micro-area where your investment plan depends entirely on short-term rentals.
Each of these Hobart areas carries specific risks:
- Gagebrook: Higher socio-economic volatility means more intensive tenant management and variable resale demand.
- Parts of Bridgewater: Street-by-street variation is extreme, and choosing poorly can mean years of stagnant values.
- Risdon Vale and Clarendon Vale: Pockets with social housing concentrations can lag on capital growth despite decent yields.
- CBD-fringe short-stay dependent areas: Active regulatory scrutiny and potential levies create unpredictable operating costs.
For these Hobart neighborhoods to become viable investment options, you would need to see sustained employment growth in the northern corridor, reduced social housing concentration in specific pockets, and regulatory clarity around short-term rental rules that currently remain in flux.
Buying a property in the wrong neighborhood is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Hobart.
Which areas in Hobart have stagnant or declining property prices as of 2026?
As of early 2026, the Hobart areas most prone to price stagnation are outer-north value suburbs like Bridgewater and Gagebrook, outer-east pockets like Rokeby and Clarendon Vale, and any location experiencing a sudden wave of similar new apartment stock.
These stagnation-prone Hobart areas have typically seen flat or low-single-digit growth over recent years, underperforming the broader Greater Hobart market which recovered into late 2025 with mid-single-digit annual gains.
The underlying causes of price stagnation differ by area:
- Bridgewater and Gagebrook: Thinner buyer pools and higher credit sensitivity make these suburbs first to stall when affordability tightens.
- Rokeby and Clarendon Vale: Stock is more substitutable, meaning buyers have many similar options and no urgency to pay premiums.
- New apartment clusters: Oversupply of similar product in a single location dilutes demand and caps price growth.
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Which Areas in Hobart Have the Best Long-Term Appreciation Potential?
Which areas in Hobart have historically appreciated the most recently?
The Hobart areas that have historically delivered the strongest appreciation over the past five to ten years are Battery Point, Sandy Bay, South Hobart, and West Hobart, where limited supply and character housing create sustained buyer competition.
These top-performing Hobart suburbs have achieved notable gains:
- Battery Point: Heritage constraints and Salamanca proximity drove total appreciation of roughly 60% to 80% over ten years.
- Sandy Bay: School catchments and university demand supported steady annual gains averaging 5% to 7%.
- South Hobart: Owner-occupier intensity and park-edge character homes delivered consistent above-market growth.
- West Hobart: Limited turnover and view premiums pushed long-term appreciation above Greater Hobart averages.
The main driver behind above-average appreciation in these Hobart areas is structural scarcity: heritage overlays, geographic constraints, and strong owner-occupier demand mean these suburbs cannot easily "build their way out" of limited supply, which protects values even during market slowdowns.
By the way, you will find much more detailed trends and forecasts in our pack covering there is to know about buying a property in Hobart.
Which neighborhoods in Hobart are expected to see price growth in coming years?
The Hobart neighborhoods expected to see the strongest price growth in coming years are Moonah, New Town, Lenah Valley, Lindisfarne, and Kingston, where improving amenity, stable demand, and relative affordability create room for catch-up appreciation.
Projected annual growth for these high-potential Hobart neighborhoods varies:
- Moonah: Gentrification momentum could support 5% to 8% annual growth as cafe culture expands.
- New Town: School demand and service accessibility should deliver steady 4% to 6% annual gains.
- Lenah Valley: Family appeal and limited turnover point toward consistent 4% to 6% appreciation.
- Lindisfarne: Eastern Shore lifestyle popularity suggests 4% to 7% growth potential.
- Kingston: Greater Hobart family coastal demand could drive 5% to 7% annual increases.
The single most important catalyst for future price growth in these Hobart neighborhoods is the combination of extremely tight rental markets supporting investor interest and limited new housing supply in established areas, which channels buyer demand into existing quality stock.
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 Do Locals and Expats Really Think About Different Areas in Hobart?
Which areas in Hobart do local residents consider the most desirable to live?
The Hobart areas that local residents consistently rate as most desirable are Sandy Bay, South Hobart, West Hobart, New Town, and Battery Point, where lifestyle quality, school access, and neighborhood character align with what Tasmanians value most.
Each of these locally-preferred Hobart areas appeals for specific reasons:
- Sandy Bay: Beach access, quality schools, and walkable cafes create a complete family lifestyle package.
- South Hobart: Quiet leafy streets near Cascade gardens attract residents seeking village feel with city proximity.
- West Hobart: Elevated views and character homes appeal to professionals wanting space without long commutes.
- New Town: Excellent school catchments and practical services make it a reliable family suburb choice.
- Battery Point: Heritage charm and Salamanca walkability attract those prioritizing lifestyle over space.
These locally-preferred Hobart suburbs typically attract established families, professionals, and long-term Tasmanians who prioritize livability over pure investment returns.
Local preferences in Hobart largely align with what foreign investors target for capital growth, though locals tend to value school catchments and community feel more highly than rental yield potential.
Which neighborhoods in Hobart have the best reputation among expat communities?
The Hobart neighborhoods with the best reputation among expats and interstate movers are Sandy Bay, Battery Point, New Town, and North Hobart, where ease of settling in without deep local knowledge makes the transition smoother.
Expats prefer these Hobart neighborhoods for practical reasons:
- Sandy Bay: University proximity, walkable services, and a cosmopolitan feel make it easy to integrate.
- Battery Point: Iconic Hobart character and Salamanca access offer an immediate sense of place.
- New Town: Family-friendly services and good schools provide a plug-and-play suburban experience.
- North Hobart: The restaurant and bar scene creates social opportunities for newcomers.
The expat profile in these popular Hobart neighborhoods typically includes academics connected to UTAS, health professionals at Royal Hobart Hospital, and mainland Australians relocating for lifestyle or remote work flexibility.
Which areas in Hobart do locals say are overhyped by foreign buyers?
The Hobart areas that locals most commonly describe as overhyped by foreign buyers are Battery Point streets without parking or practical access, CBD-fringe apartments marketed primarily as Airbnb investments, and some Sandy Bay apartment clusters where building quality does not match the price tag.
Locals believe these Hobart areas are overvalued for specific reasons:
- Battery Point back streets: No parking and steep lanes make daily life frustrating despite the prestigious postcode.
- CBD-fringe "Airbnb" apartments: Regulation risk and oversupply mean returns rarely match the marketing pitch.
- Some Sandy Bay apartment clusters: Older buildings with high strata fees offer poor value compared to nearby houses.
Foreign buyers typically see prestige postcodes and rental income projections in these Hobart areas, while locals understand the practical drawbacks like parking hassles, regulatory uncertainty, and building maintenance issues that erode real-world value.
By the way, we've written a blog article detailing the experience of buying a property as a foreigner in Hobart.
Which areas in Hobart are considered boring or undesirable by residents?
The Hobart areas that residents most commonly describe as boring or undesirable are outer Kingston pockets, the Howrah and Tranmere edges, Claremont and Austins Ferry in parts, and the far outer northern suburbs like Gagebrook.
Residents find these Hobart areas less appealing for specific reasons:
- Outer Kingston pockets: Car-dependent with limited walkable amenity creates a suburban monotony.
- Howrah and Tranmere edges: Distance from services and lack of distinct character make them feel generic.
- Parts of Claremont and Austins Ferry: Variable street quality and limited dining or social options reduce lifestyle appeal.
- Gagebrook: Socio-economic challenges and isolation from Hobart's cultural life make it unappealing to most residents.
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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 | Australia's official statistics agency for population and demographic data. | We used it to understand demand pressure from population growth in Greater Hobart. We then connected that to rental tightness and price resilience by suburb. |
| Cotality (formerly CoreLogic) | The most widely cited hedonic index for Australian dwelling values. | We used it as the backbone for current Hobart market positioning. We then triangulated suburb-level pricing with bank research citing the same index. |
| SQM Research | A long-running, widely cited Australian rental market tracker. | We used it to quantify how tight Hobart rentals are, which underpins yield calculations. We then identified areas with strong landlord pricing power. |
| Australian Taxation Office | The enforcement authority publishing foreign buyer rules in plain language. | We used it to clarify what foreign buyers can purchase in Hobart as of 2026. We then highlighted strategy implications for new builds versus established homes. |
| NAB Property Research | A major bank's research using institutional-grade property datasets. | We used it to cross-check Hobart's recent growth rates and days-on-market. We then avoided relying on a single private dataset for market temperature. |
| Domain Research | One of Australia's standard asking rent series used by professionals. | We used it to triangulate Hobart rent direction and cross-capital comparisons. We then aligned our long-term rent expectations to Domain's reported trends. |
| New Bridgewater Bridge Project | The official government site with verifiable project milestones and timing. | We used it to identify infrastructure-driven uplift potential in the northern corridor. We then explained why some cheaper suburbs may improve faster than expected. |
| City of Hobart | The local government's primary source on short-stay accommodation rules. | We used it to assess regulatory friction for Airbnb-style investing by area. We then identified where short-stay strategies face higher compliance costs. |
| Tourism Tasmania | The state tourism authority compiling official visitor datasets. | We used it to connect tourism demand to short-stay performance by location. We then identified which precincts benefit most from sustained visitor flows. |
| Rental Affordability Index | A centralized dashboard explaining methodology for affordability measurement. | We used it to quantify affordability stress affecting rent ceilings. We then flagged areas where rent growth is likely to hit resistance. |
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