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Hobart's property market is experiencing a modest recovery in 2025 after several years of volatility.
Property prices have grown slightly with some suburbs recording stronger gains than others, making it an interesting time for both investors and owner-occupiers to consider entering the market.
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Hobart's property market shows modest recovery with house prices growing 1-2% annually, while some suburbs like North Hobart and Kingston demonstrate stronger performance.
The market offers opportunities for different buyer types, with median house prices around $715,000 and units at $552,000, supported by low vacancy rates and steady rental demand.
| Key Metric | Current Status | Outlook |
|---|---|---|
| Median House Price | $715,165 | Modest growth expected |
| Median Unit Price | $552,352 | Stable to slight growth |
| Annual Growth (Houses) | 1-2.2% | Continued slow growth |
| Top Growth Suburbs | North Hobart (22%), Kingston, Bellerive | Sustained demand |
| Rental Yields | 3-4% houses, 4-5% units | Supported by low vacancies |
| Vacancy Rates | Below 1% in growth suburbs | Tight rental market continues |
| 10-Year Growth | Substantial gains despite recent correction | Long-term positive outlook |
How have property prices in Hobart moved over the past 1, 5, and 10 years?
Hobart's property market has experienced distinct phases of growth and correction over different time periods.
Over the past year, Hobart's median property price rose roughly 1-2% following a period of decline after the 2022 peak. This modest recovery indicates the market is stabilizing after previous volatility.
Looking at the 5-year period, property values are up about 29-37%, driven primarily by a significant COVID-era boom that was later followed by a market correction. This substantial growth reflects the dramatic market movements that occurred between 2020 and 2022.
The 10-year growth story is even more impressive, with substantial gains underpinned by population growth and ongoing supply constraints. However, it's important to note that recent price movements remain modest and the city is still trading below its 2022 peak levels.
As of September 2025, the market appears to be finding its footing after the correction period, with gradual price improvements across most property types.
What's the current average price for houses, apartments, and townhouses in Hobart?
Hobart's property prices vary significantly by property type, with houses commanding the highest median prices.
| Property Type | Median Price | Annual Growth Rate |
|---|---|---|
| All Dwellings | $673,858 - $677,270 | +1% |
| Houses | $712,000 - $715,165 | +1% to +2.2% |
| Units/Apartments | $537,100 - $552,352 | -1% to +0.4% |
| Townhouses | Between houses and units | Similar to overall market |
Which suburbs are seeing the strongest growth right now, and which ones are lagging behind?
Several Hobart suburbs are significantly outperforming the overall market in terms of price growth.
North Hobart leads with an exceptional 22% annual price rise, making it the standout performer in the current market. Kingston, Bellerive, and Geilston Bay are also showing strong momentum with steady 7% annual growth over the past 5 years.
Howrah is particularly strong for unit investments, recording 8% annual growth over 5 years. Moonah continues to attract attention with 6-8% annual growth and notably fast property turnover rates.
The lagging suburbs tend to be those that reached previous peak prices or areas with less development activity and lower buyer demand, though specific underperforming suburbs aren't highlighted in current market data.
It's something we develop in our Australia property pack.
What are the rental yields in different parts of Hobart, and how do they compare by property type?
Rental yields in Hobart vary based on property type and location, with units generally offering higher returns than houses.
Units and apartments typically deliver rental yields of 4-5%, reflecting their more affordable purchase prices relative to rental income. Houses generally provide yields of 3-4%, which is lower due to their higher median purchase prices.
Popular investor suburbs like Howrah and Geilston Bay show higher yields due to their combination of low vacancy rates and steady rental demand. These areas benefit from strong tenant interest and limited rental supply.
The exact yield varies significantly by individual property condition, location within each suburb, and current market rental rates. Properties in growth suburbs with good amenities and transport links typically command both higher rents and better yields.
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How high is rental demand across Hobart, and which areas have the lowest vacancy rates?
Rental demand remains exceptionally high across Hobart, with vacancy rates well below national averages in most areas.
The citywide vacancy rate stays very low, creating upward pressure on rental prices and supporting strong rental yields for investors. Growth suburbs consistently report vacancy rates below 1%, indicating an extremely tight rental market.
Moonah and Howrah (particularly for units) show some of the lowest vacancy rates in the city. These suburbs benefit from their combination of relative affordability, good amenities, and strong transport links to the CBD.
The high rental demand is driven by limited rental stock, steady population growth, and the ongoing challenges in homeownership affordability. This creates a favorable environment for rental property investors across most Hobart suburbs.
What are the typical costs of buying in Hobart beyond the purchase price, like stamp duty, legal fees, and council rates?
Property buyers in Hobart need to budget for several additional costs beyond the purchase price.
| Cost Type | Typical Amount | Notes |
|---|---|---|
| Stamp Duty | 4-5% of purchase price | Varies based on property value and buyer status |
| Legal/Conveyancing Fees | $1,500 - $2,500 | Professional legal services |
| Building & Pest Inspections | $500 - $700 | Essential for most purchases |
| Council Rates (Annual) | $1,200 - $2,000 | Ongoing ownership cost |
| Insurance & Moving | Variable | Property insurance and relocation expenses |
How do short-term prospects compare with medium-term and long-term outlooks for Hobart's property market?
Hobart's property market outlook varies significantly across different time horizons.
Short-term prospects for the next 12-18 months show modest growth expected, with ongoing affordability challenges and supply constraints likely to support gradual price increases. The market appears to be stabilizing after recent volatility.
Medium-term outlook for 3-5 years suggests stable to moderate growth as supply and demand gradually find better balance. Don't expect rapid price booms, but steady appreciation seems likely given underlying market fundamentals.
Long-term prospects over 10+ years remain positive, supported by Tasmania's population growth trends and historically limited new housing supply. However, expect cyclical ups and downs rather than continuous linear growth.
The market's recovery trajectory depends heavily on broader economic conditions, interest rate movements, and state government housing policies.
What are the risks that could impact property values in Hobart, such as economic shifts, population trends, or government policies?
Several risk factors could negatively impact Hobart's property values in the coming years.
1. **Economic downturns** affecting employment and buyer confidence across Tasmania2. **Interest rate volatility** impacting borrowing capacity and investor demand 3. **Population trend changes** if interstate migration to Tasmania slows or reverses4. **Government policy shifts** including changes to property taxes, first home buyer incentives, or foreign investment rules5. **Construction industry bottlenecks** limiting new supply and driving up development costs6. **Affordability constraints** potentially pricing out local buyers and reducing demandConstruction bottlenecks and ongoing affordability pressures represent particularly significant headwinds for sustained market growth. These factors could limit both supply increases and demand from local buyers.
Climate change impacts and insurance costs may also emerge as longer-term risks for certain areas, particularly waterfront properties vulnerable to sea level rise or extreme weather events.
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If I want to buy to live in Hobart, which suburbs balance affordability, lifestyle, and long-term growth?
Several Hobart suburbs offer excellent combinations of affordability, lifestyle amenities, and growth potential for owner-occupiers.
1. **Kingston** - Family-friendly atmosphere with beach access, ongoing development projects, and relatively affordable entry prices2. **Moonah** - High recent growth, good affordability levels, strong amenities, and very low rental vacancies indicating desirability3. **Bellerive** - Waterfront lifestyle with close CBD proximity, strong investment fundamentals, and excellent liveability factors 4. **Geilston Bay** - Consistent steady growth, good local amenities, and attractive lifestyle offerings5. **Howrah** - Particularly good value for units, strong tenant demand, and improving infrastructureThese suburbs typically offer good access to schools, shopping centers, and transport links while maintaining more affordable entry points than premium inner-city locations.
It's something we develop in our Australia property pack.
If I want to buy to rent out, where can I find the best mix of tenant demand and rental return?
Hobart's rental investment opportunities are strongest in suburbs with proven low vacancy rates and solid rental yields.
Howrah stands out particularly for unit investments, combining strong rental demand with good yields due to its affordability and proximity to employment centers. The suburb consistently shows vacancy rates below 1% for units.
Geilston Bay offers excellent tenant demand across multiple property types, with steady rental growth and low vacancy rates. The suburb attracts both families and professionals seeking suburban lifestyle with city access.
Moonah continues to deliver strong rental returns due to its combination of affordability, amenities, and transport links. The fast property turnover indicates high desirability among both buyers and renters.
Inner suburbs closer to the CBD also maintain strong tenant demand, though yields may be lower due to higher purchase prices. These areas attract professional renters and students seeking convenience.
If I want to buy to resell later, which areas and property types are most likely to deliver capital gains?
Capital growth prospects in Hobart are strongest in suburbs showing gentrification trends and inner-city areas with development potential.
North Hobart leads for capital growth potential given its current 22% annual growth rate and trendy inner-city location. The suburb attracts young professionals and benefits from ongoing urban renewal.
Bellerive offers strong resale prospects due to its waterfront location, proximity to the CBD, and limited supply of similar lifestyle properties. Quality homes in this area tend to hold and grow their value well.
For property types, renovated character homes in inner suburbs typically deliver the strongest capital growth. High-quality modern units in growth suburbs also show good appreciation potential, particularly those with parking and outdoor space.
Kingston and Moonah represent emerging gentrification opportunities where well-chosen properties could benefit from ongoing suburb improvement and infrastructure development.
It's something we develop in our Australia property pack.
Given my budget, which property type and suburb in Hobart makes the most sense for me to enter the market now?
Your optimal entry strategy depends on your budget range and primary objectives for property ownership.
| Budget Range | Recommended Property Type | Suggested Suburbs |
|---|---|---|
| Under $550,000 | Units/Apartments | Howrah, Moonah, Geilston Bay |
| $550,000 - $650,000 | Units or townhouses | Kingston, Bellerive, inner suburbs |
| $650,000 - $750,000 | Houses or premium units | Kingston, Moonah, established suburbs |
| Above $750,000 | Houses | North Hobart, Bellerive, premium locations |
| Investment Focus | Units preferred | Howrah, Geilston Bay (higher yields) |
| Family Living | Houses preferred | Kingston, Bellerive (lifestyle + growth) |
| First-time Buyer | Units/townhouses | Moonah, Kingston (affordability + growth) |
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Hobart's property market in 2025 presents a balanced opportunity for both investors and owner-occupiers, with modest growth expectations and strong rental fundamentals.
The key to success lies in choosing the right suburb and property type based on your specific budget, timeline, and objectives, whether that's capital growth, rental returns, or lifestyle living.