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As of September 2025, Hobart's property market shows a median house price of $740,000-$770,000, with units averaging $540,000-$570,000.
Properties in premium suburbs like Sandy Bay and Battery Point command over $1.3 million, while entry-level buyers can find opportunities in Bridgewater and Glenorchy starting from $450,000. The market has stabilized after the significant COVID-driven boom that saw prices surge 60% between 2019-2022.If you want to go deeper, you can check our pack of documents related to the real estate market in Australia, based on reliable facts and data, not opinions or rumors.
Hobart's property market in 2025 remains one of Australia's most supply-constrained capitals, with median house prices around $755,000 and unit prices at $555,000.
The market offers clear opportunities for different buyer types, from affordable suburbs like Glenorchy ($575,000 median) to premium waterfront areas exceeding $1.3 million.
| Market Segment | Median Price Range | Best Suburbs |
|---|---|---|
| Entry-level Houses | $400,000-$500,000 | Bridgewater, Risdon Vale, Gagebrook |
| Mid-range Houses | $570,000-$750,000 | Glenorchy, Claremont, Moonah |
| Premium Houses | $950,000-$1,350,000 | Sandy Bay, Battery Point, Mount Nelson |
| Units/Apartments | $540,000-$570,000 | Inner Hobart, West Hobart, South Hobart |
| Investment Properties | $450,000-$650,000 | Glenorchy, Moonah, Claremont |
| Short-term Rentals | $700,000-$1,200,000 | CBD, Sandy Bay, Battery Point |
| Owner-occupier Focus | $600,000-$900,000 | South Hobart, West Hobart, Lenah Valley |
What is the current median property price in Hobart?
The current median house price in Hobart sits between $740,000 and $770,000 as of September 2025.
Units and apartments in Hobart have a median price range of $540,000 to $570,000, making them approximately 30-35% more affordable than houses. The Hobart local government area encompasses both the CBD and surrounding inner suburbs, which drives these median figures higher than outer areas.
These prices reflect a market that has stabilized after the dramatic COVID-driven boom period. Between 2019 and 2022, Hobart experienced a 60% price surge due to interstate migration, low interest rates, and constrained housing supply. The market has since cooled, with prices holding steady throughout 2024 and into 2025.
The median figures vary significantly depending on the specific suburb and property type. Waterfront suburbs like Sandy Bay command much higher prices, while areas like Bridgewater offer more affordable entry points. The overall Hobart market remains supply-constrained, which continues to support these price levels despite higher interest rates.
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How do prices differ between houses and units in Hobart?
Houses in Hobart typically cost 30-35% more than units, with houses averaging $755,000 compared to units at $555,000.
The price gap reflects several key factors that buyers should understand. Houses offer more space, private outdoor areas, and often come with parking, which appeals strongly to families and owner-occupiers. Units, however, provide better affordability for first-time buyers and investors seeking rental yields.
Units are experiencing stronger demand growth in 2025, particularly from downsizers and investors. Inner Hobart units near the CBD and University of Tasmania campus are especially popular. Many units offer modern amenities and low-maintenance living, attracting professionals and retirees who prefer convenience over space.
Houses remain the preferred choice for families, especially in suburbs with good schools and community facilities. The house market has shown more resilience during economic uncertainty, as owner-occupiers tend to hold properties longer than investors. However, unit markets typically recover faster during upswings due to lower entry costs.
Investment yields also favor units, which typically achieve 4.5-5.2% rental returns compared to houses at 3.8-4.2%. This yield advantage makes units attractive for investors despite lower capital growth potential over the long term.
Which suburbs offer the most affordable properties in Hobart?
Bridgewater and Gagebrook offer the most affordable entry points with median prices around $400,000-$450,000.
| Suburb | Median Price | Distance to CBD |
|---|---|---|
| Bridgewater | $400,000-$430,000 | 25km north |
| Gagebrook | $420,000-$450,000 | 22km north |
| Risdon Vale | $460,000-$490,000 | 18km north |
| Claremont | $530,000-$550,000 | 12km north |
| Glenorchy | $570,000-$590,000 | 8km north |
| Moonah | $580,000-$620,000 | 6km north |
What are the most expensive and upcoming suburbs in Hobart?
Sandy Bay leads as Hobart's most expensive suburb with a median price around $1.35 million, followed closely by Battery Point at $1.3 million.
These premium suburbs command high prices due to their heritage character, waterfront locations, and proximity to the city center. Sandy Bay benefits from its prestigious reputation, quality schools, and stunning harbor views. Battery Point offers unique historic charm with its cobblestone streets and colonial architecture.
Mount Nelson and South Hobart represent the next tier, with medians between $950,000 and $1.1 million. Both suburbs offer elevated positions with city and water views, attracting professionals and affluent families. South Hobart has particularly strong community amenities and walkability to the CBD.
The upcoming hotspots showing significant gentrification include Moonah, Lenah Valley, and West Hobart. These suburbs are attracting young professionals and families priced out of premium areas. Moonah especially benefits from its proximity to the city and improving retail precincts. West Hobart appeals to buyers seeking character homes with renovation potential.
Lenah Valley is emerging as a family-friendly alternative with good schools and community facilities. The suburb offers more space than inner areas while maintaining reasonable commuting times to the CBD and major employment centers.
How much does property cost per square meter in Hobart?
Property costs per square meter vary dramatically across Hobart, ranging from $3,000 in entry-level suburbs to $12,000 in premium waterfront areas.
Entry-level suburbs like Bridgewater and Glenorchy typically see land costs around $3,000-$4,000 per square meter. These areas offer the best value for first-time buyers and investors seeking affordable entry points. The lower per-square-meter costs reflect their distance from the CBD and fewer premium amenities.
Mid-range suburbs including Moonah, Claremont, and outer South Hobart command $5,000-$7,000 per square meter. These areas balance affordability with reasonable access to employment centers and community facilities. They represent good value for families seeking space without premium location costs.
Premium inner city areas including Battery Point and Sandy Bay can reach $8,000-$12,000 per square meter, especially for properties with water views or heritage significance. The high per-square-meter costs reflect scarcity, location prestige, and strong demand from affluent buyers.
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What are the average total costs, including fees and taxes, when buying property in Hobart?
Total acquisition costs in Hobart typically add approximately 5% to the purchase price, with stamp duty being the largest component.
Stamp duty in Tasmania ranges from 3.5% to 4.5% of the property price, depending on the purchase amount and buyer circumstances. For a typical $700,000 property, stamp duty alone costs around $25,000-$30,000. First-home buyers may qualify for concessions or exemptions on properties under certain thresholds.
Conveyancing and legal fees typically cost $1,500-$2,500, depending on the property complexity and legal firm chosen. These fees cover title searches, contract reviews, settlement coordination, and property registration. More complex transactions involving strata properties or unusual title conditions may cost more.
Building and pest inspections are essential in Hobart's older housing stock, costing $500-$800 combined. Many properties, especially in heritage areas, require careful structural assessment. Professional inspections can identify costly issues before purchase, potentially saving thousands in unexpected repairs.
Additional costs include mortgage registration fees ($150-$300), loan establishment fees ($600-$2,000), and potentially mortgage insurance if borrowing above 80% of the property value. For a $700,000 property purchase, buyers should budget approximately $35,000 for all fees and taxes combined.
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What are the typical mortgage rates and monthly repayments for properties in Hobart?
As of September 2025, typical mortgage rates for owner-occupiers range from 5.7% to 6.2% for both fixed and variable loans with 80% loan-to-value ratios.
For a $600,000 loan (typical for a $750,000 property with 20% deposit) at 6% interest over 30 years, monthly repayments are approximately $3,600. This represents a significant increase from the sub-3% rates available during 2020-2022, substantially impacting borrowing capacity and affordability.
Investment property loans typically carry rates 0.3-0.7% higher than owner-occupier rates, reflecting increased lender risk. Investors should budget for rates around 6.2-6.8% depending on their deposit size and financial profile. Lower loan-to-value ratios can secure better rates.
First-home buyers may access slightly better rates through government-backed schemes or lender incentives. Some banks offer cashback deals or reduced fees for first-home buyers, potentially saving $2,000-$5,000 in initial costs. However, these benefits should be weighed against the ongoing interest rate over the loan term.
Professional borrowers including doctors, lawyers, and accountants often secure preferential rates due to their stable income profiles. These professional packages can provide 0.1-0.3% rate discounts plus fee waivers, resulting in significant savings over the loan term.
How have property prices in Hobart changed over the past 5 years?
Hobart experienced extraordinary price growth of approximately 60% between 2019 and 2022, followed by market stabilization through 2023-2025.
The 2019-2022 boom was driven by multiple factors including interstate migration during COVID-19, extremely low interest rates, and Hobart's limited housing supply. Many buyers relocated from Melbourne and Sydney, bringing higher purchasing power and driving competition for limited stock. This created a perfect storm for rapid price appreciation.
The market peaked in early 2022 when interest rate rises began impacting buyer demand. Through 2023-2024, prices stabilized with slight declines in some suburbs as affordability constraints reduced buyer activity. However, the underlying supply shortage prevented significant price drops experienced in some mainland capitals.
Different suburbs experienced varying growth patterns. Premium areas like Sandy Bay and Battery Point saw more modest growth due to their already high price points, while emerging suburbs like Moonah and Claremont experienced stronger percentage gains. Units generally outperformed houses during the correction period due to their better affordability.
The five-year period transformed Hobart from Australia's most affordable capital to one of the least affordable, fundamentally changing the market dynamics and buyer demographics. This shift has created both challenges for local buyers and opportunities for investors with longer-term perspectives.
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What is the forecast for property prices in Hobart over the next 1, 5, and 10 years?
Short-term forecasts predict minimal growth of 0-2% over the next 12 months due to sustained high interest rates and affordability constraints.
The one-year outlook reflects current market conditions where high borrowing costs limit buyer activity. Many potential purchasers are waiting for rate cuts or improved affordability conditions. However, continued supply constraints and population growth prevent significant price declines, creating a sideways market trend.
Five-year forecasts suggest cumulative growth of 10-15% as interest rates normalize and housing supply remains constrained. This represents a return to more sustainable growth rates after the exceptional boom period. Infrastructure improvements and continued interstate migration should support steady appreciation, though at much slower rates than recent years.
Ten-year projections indicate Hobart will remain Australia's strongest performing regional capital with cumulative growth around 30-40%. The city's fundamental advantages including lifestyle appeal, relative affordability compared to Sydney and Melbourne, and chronic housing undersupply support long-term growth. However, this growth will be more moderate than the historic boom period.
Different property segments will perform differently over these timeframes. Units may outperform houses in the short term due to better affordability, while premium waterfront properties should maintain value due to their scarcity. Affordable suburb properties may experience stronger growth as first-home buyer activity eventually recovers.
What are the rental yields for long-term and short-term rentals in Hobart?
Long-term rental yields in Hobart range from 3.8-4.2% for houses and 4.5-5.2% for units, while short-term rentals can achieve 6-8% in prime locations.
| Property Type | Long-term Yield | Short-term Yield |
|---|---|---|
| Houses (Affordable suburbs) | 4.0-4.5% | 5.0-6.5% |
| Houses (Premium suburbs) | 3.5-4.0% | 6.0-8.0% |
| Units (Inner city) | 4.8-5.5% | 7.0-9.0% |
| Units (Suburban) | 4.2-4.8% | 4.5-6.0% |
| Apartments (CBD) | 5.0-5.8% | 8.0-10.0% |
Which property types and locations are best for owner-occupiers, long-term renters, and short-term rental investors?
Owner-occupiers should focus on South Hobart, West Hobart, and Lenah Valley for their community amenities, school access, and lifestyle benefits.
South Hobart offers excellent walkability to the CBD, quality cafes and restaurants, and strong community connections. The suburb provides character homes with renovation potential and good access to both city employment and recreational areas. West Hobart similarly offers heritage charm with better affordability than premium suburbs.
Lenah Valley appeals to families seeking space and community amenities including parks, schools, and shopping centers. The suburb provides better value than inner areas while maintaining reasonable commuting times. Mount Nelson also suits families preferring elevated positions with views and larger block sizes.
Long-term rental investors should target Glenorchy, Claremont, and Moonah for their affordability, rental demand, and growth potential. These suburbs offer stable tenant pools including families, workers, and university students. Glenorchy provides particular value with its improving infrastructure and proximity to major employment centers.
Short-term rental investors should focus on Sandy Bay, Battery Point, and CBD locations to maximize tourist and business traveler demand. Sandy Bay benefits from its proximity to MONA and waterfront attractions. Battery Point offers unique heritage appeal for tourists seeking authentic experiences. However, investors must navigate council restrictions on short-stay accommodations in residential areas.
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How does Hobart's property market compare to other similar Australian cities?
Hobart offers lower median prices than Adelaide ($900,000+) and Canberra ($950,000+) while providing superior rental yields and scarcity-driven growth potential.
Compared to Adelaide, Hobart's $755,000 median house price provides better affordability for interstate buyers. However, Adelaide offers more diverse employment opportunities and larger market liquidity. Hobart's rental yields of 4-5% typically exceed Adelaide's 3-4%, reflecting stronger rental demand relative to purchase prices.
Against Canberra's government-driven economy, Hobart offers more lifestyle-focused appeal but less employment diversity. Canberra's higher median prices reflect stronger income levels and job security, while Hobart attracts buyers prioritizing lifestyle over earning potential. Both cities experience supply constraints, but Hobart's geographic limitations create more severe shortages.
Hobart's smaller market size creates both opportunities and risks compared to larger capitals. Price volatility can be higher due to limited stock, but this also creates faster appreciation during growth periods. The market's tourism and lifestyle focus makes it more susceptible to economic cycles affecting discretionary spending.
Among Australia's capitals, Hobart is considered the most supply-constrained due to its island geography and planning restrictions. This fundamental constraint supports long-term price resilience but can create affordability challenges for local residents. The city's unique position as Australia's second-oldest capital with limited development land ensures ongoing scarcity value.
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 mature landscape where strategic buyers can still find value despite elevated prices from the recent boom period.
The market offers distinct opportunities across different price segments, from affordable entry points in northern suburbs to premium investments in waterfront areas, each suited to specific buyer goals and risk profiles.