Should you buy property in Hobart now?

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

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Hobart. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the Australian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Hobart, Melbourne, and Sydney. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What's the current average property price in Hobart compared to 12 months ago?

As of September 2025, Hobart houses are selling for an average of $714,691, while units are priced at $552,352.

Over the past 12 months, Hobart house prices have increased by approximately 2.5%, showing steady but modest growth. Units have experienced much slower growth at just 0.08% year-on-year, indicating a more cautious market for apartment buyers.

The combined median dwelling price across all property types now sits at $673,393, representing a healthy 1-2.5% increase from September 2024. This growth reflects the market's recovery from earlier volatility and demonstrates renewed confidence among both buyers and sellers.

These price movements position Hobart as a stable market compared to other Australian capitals, where some cities have experienced more dramatic fluctuations in recent months.

How much have prices shifted in the past 3 years, and what's the medium-term trend projection?

Hobart's property market experienced significant volatility over the past three years, with prices peaking in early 2022 before softening and now slowly recovering.

While cumulative growth over the three-year period has been modest due to the mid-period correction, the market has shown remarkable long-term strength with values up 85.9% over the past decade. This demonstrates Hobart's underlying appeal and growth potential despite short-term fluctuations.

The medium-term trend projection shows a market that has stabilized and is now positioned for steady growth. After working through the earlier volatility, Hobart is entering a phase of more sustainable price increases supported by strong fundamentals including population growth and limited housing supply.

Market analysts identify this stabilization period as creating opportunities for both investors and owner-occupiers to enter at a more favorable point in the cycle.

What are experts forecasting for Hobart's property prices over the next 1–3 years?

Major banks and property analysts are forecasting continued gradual growth for Hobart property prices between 2-5.7% annually through 2026-2028.

Institution	2025 Forecast	Property Type Focus
NAB	2-3% growth	General residential market
Westpac	2.5-3.3% growth	Houses and units combined
KPMG	Up to 5.7% growth	Houses specifically
OpenAgent	2.5-4% growth	Median dwelling prices
Property Update	3-5% growth	Established properties

These forecasts reflect optimism about Hobart's economic fundamentals, including steady population growth, limited housing supply, and the city's growing appeal as a lifestyle destination.

The consensus suggests Hobart will outperform many other Australian markets over the next three years, making it an attractive option for both investors and owner-occupiers.

How does Hobart's rental yield compare now across houses, apartments, and townhouses?

Hobart offers competitive rental yields across all property types, with houses delivering 4.4-6.2% in the highest-yielding suburbs and city averages around 3.4-4.0%.

Units provide yields of 3.6-5.7% depending on location, with central areas typically delivering around 4.0%. The variation in yields reflects the diversity of Hobart's rental market, from premium inner-city locations to high-yield outer suburbs.

Townhouses and properties in select suburbs like Moonah, Gagebrook, and Bridgewater are leading investor returns with yields exceeding 5%. These areas combine affordable entry prices with strong rental demand, creating attractive investment propositions.

The rental yield landscape is supported by Hobart maintaining Australia's tightest rental market, ensuring consistent tenant demand and rental growth potential across all property types.

It's something we develop in our Australia property pack.

What's the current vacancy rate by suburb, and how is it trending?

Hobart maintains Australia's tightest rental market with vacancy rates of just 0.6-0.82% in central areas and 0.9-1% in outer suburbs, well below national averages.

This exceptionally low vacancy rate indicates extremely strong ongoing rental demand and creates a highly favorable environment for property investors. The tight market means landlords can be selective with tenants and achieve premium rents.

The trend shows vacancy rates remaining consistently low across all Hobart suburbs, with some areas experiencing even tighter conditions as population growth continues to outpace housing supply. This structural imbalance supports both rental growth and property values.

Areas like North Hobart, South Hobart, and Kingston are experiencing particularly tight vacancy rates due to their proximity to employment centers and lifestyle amenities, while even outer suburbs maintain vacancy rates well below the national average.

Which areas of Hobart are showing the fastest growth right now, and which are lagging?

Dodges Ferry leads Hobart's growth with an impressive 10.3% price increase, followed by South Hobart at 6.7% and Moonah at 5.8%.

1. **Fastest-growing suburbs (2024-2025):** - Dodges Ferry: 10.3% growth - South Hobart: 6.7% growth - Moonah: 5.8% growth - Kingston: Strong growth supported by infrastructure - Blackmans Bay: Consistent performer - North Hobart: Steady upward trajectory - Bellerive: Infrastructure-driven growth

Kingston and Blackmans Bay are also showing strong performance, benefiting from infrastructure improvements and growing appeal among families and professionals.

Lagging areas include some unit markets in Howrah, Kingston, and Sandy Bay, which saw price drops ranging from -0.4% to -3.3%. These areas are experiencing market corrections rather than fundamental weakness, potentially creating opportunities for discerning buyers.

The growth patterns reflect buyer preferences for suburbs offering good value, infrastructure development, and lifestyle amenities, while premium inner-city areas experience slower but more stable growth.

What's the difference in price movements between entry-level properties, mid-range, and premium homes?

Entry-level suburbs like Moonah, Bridgewater, and New Norfolk ($470,000-$635,000) are experiencing the strongest growth at 4-5% annually while also delivering the best rental yields.

Mid-range markets in suburbs like Bellerive ($841,000), Lindisfarne ($773,000), and Kingston ($743,000) are showing stable returns supported by infrastructure improvements and strong buyer demand from families and professionals.

Premium properties in Sandy Bay and West Hobart ($1 million+) are experiencing slower growth but offer higher stability and superior amenities. These areas appeal to buyers prioritizing lifestyle and established prestige rather than maximum capital growth.

The performance gap reflects market dynamics where affordability constraints are driving more buyers toward entry and mid-range properties, creating stronger competition and price pressure in these segments. Premium properties offer stability but lower growth potential in the current market cycle.

How much do you need as a minimum budget to buy in central Hobart versus surrounding suburbs?

Central Hobart requires a minimum budget of $715,000-$978,000 for entry-level properties, with North Hobart representing the most affordable central option at around $978,000 median.

Location Type	Minimum Budget	Examples
Central CBD-Adjacent	$715,000-$1,300,000	North Hobart, West Hobart, South Hobart
Inner Suburbs	$650,000-$850,000	Kingston, Bellerive, Lindisfarne
Mid-Outer Suburbs	$460,000-$635,000	Moonah, New Norfolk, Bridgewater
Outer Growth Areas	$420,000-$580,000	Risdon Vale, Chigwell, Claremont
Premium Central	$1,000,000+	Battery Point, Sandy Bay (waterfront)

Surrounding suburbs offer significantly more affordable entry points from $460,000-$635,000 in areas like Bridgewater, New Norfolk, Moonah, Risdon Vale, and Chigwell. These areas provide excellent value for money while still offering good access to Hobart's CBD and amenities.

The price differential creates opportunities for buyers to access Hobart's property market at various budget levels while still participating in the city's growth story.

What government policies, taxes, or incentives are affecting buyers right now in Hobart?

Stamp duty remains a substantial upfront cost for Hobart property buyers, though future reforms may gradually transition this to broader land tax systems to reduce barriers to property transactions.

The "Better Deal for Renters" agreement is currently being implemented, increasing tenure security and rights for renters. This policy change affects investor calculations by potentially extending tenancy periods and modifying landlord obligations.

National and Tasmania initiatives are encouraging more affordable housing supply and supporting institutional investment in rental properties. These policies aim to address housing supply shortages while supporting rental market stability.

First home buyer grants and concessions continue to operate in Tasmania, providing support for eligible buyers entering the market. These incentives help offset some of the affordability challenges facing entry-level buyers.

Planning reforms and infrastructure investments are creating opportunities in growth corridors, particularly benefiting suburbs like Kingston, Moonah, and areas along major transport routes.

If you're buying to live, which suburbs balance affordability, amenities, and future value?

Bridgewater, Moonah, Kingston, and New Norfolk offer the best balance of affordability, amenities, and future value for owner-occupiers in Hobart.

1. **Best value suburbs for owner-occupiers:** - **Bridgewater**: Low entry prices, family-friendly facilities, improving infrastructure - **Moonah**: Strong growth potential, good shopping and transport links, community amenities - **Kingston**: Excellent schools, growing retail precinct, major development projects - **New Norfolk**: Historic charm, river access, affordable housing, growing café culture - **Bellerive**: Waterfront lifestyle, ferry access, strong community feel - **Lindisfarne**: Family-oriented, good schools, infrastructure improvements - **North Hobart**: Inner-city lifestyle, walkability, cultural amenities

These suburbs combine lower entry costs with solid growth prospects and improving amenities. Kingston stands out for families due to excellent schools and major retail developments, while Moonah offers the best combination of affordability and growth potential.

North Hobart, Bellerive, and Lindisfarne provide premium lifestyle benefits with moderate pricing, making them attractive for buyers prioritizing amenities alongside growth potential.

It's something we develop in our Australia property pack.

If you're buying to rent out, which areas and property types are delivering the strongest returns today?

Herdsmans Cove delivers the highest rental yields for houses at 6.2%, followed by Gagebrook at 5.9% and Bridgewater at 5.5%.

For units, Old Beach leads with 5.7% yields, followed by Claremont at 5.5%, with Moonah and South Hobart both delivering strong returns of 4.7-5.0%. These areas combine affordable purchase prices with strong rental demand.

Properties in areas with tight vacancy rates offer the most reliable rental income and tenant stability. Suburbs like Moonah provide excellent investor returns ranging from 4.4-5.0% while also showing strong capital growth potential.

The combination of Australia's tightest rental market and diverse yield opportunities makes Hobart particularly attractive for rental property investors. Areas with good transport links and essential services tend to maintain consistent tenant demand.

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.

If you're buying to resell in a few years, what kinds of properties and locations are likely to hold or grow in value the most?

Kingston, Bellerive, North Hobart, Moonah, and South Hobart offer the best prospects for capital growth through 2028, with growth underpinned by infrastructure development, lifestyle demand, and population movement.

Entry- to mid-market homes in high-demand growth corridors represent the sweet spot for capital appreciation. These properties benefit from broader buyer appeal and demographic trends favoring more affordable options.

Well-located apartments in resilient, undersupplied areas also offer strong resale prospects, particularly in suburbs with improving infrastructure and amenities. Units in growth areas like Kingston and Moonah are positioned to benefit from increasing density and development.

Inner suburbs with new infrastructure projects, including Kingston's major retail developments, Moonah's transport improvements, and North Hobart's urban renewal, have the best medium-term capital growth prospects.

Properties that appeal to both owner-occupiers and investors tend to hold value best during market cycles, making family-friendly homes in well-connected suburbs the safest choice for capital appreciation.

It's something we develop in our Australia property pack.

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.

Sources

1. Your Mortgage - Median House Prices Around Australia
2. OpenAgent - Hobart Property Market
3. Property Update - National Housing Market Update Australia
4. KPMG - House Prices to Rise Gradually Over Next 18 Months
5. Pulse Tasmania - Hobart House Prices Climb 2.5% Over Past Year
6. BambooRoutes - Hobart Property Forecast
7. RealEstate.com.au - Dire Vacancy Rate Increase Not Enough in Tight Expensive Market
8. RealEstate.com.au - Which Greater Hobart Suburb Recorded Double-Digit Growth