Authored by the expert who managed and guided the team behind the Australia Property Pack
Yes, the analysis of Tasmania's property market is included in our pack
Property prices in Tasmania are showing modest growth in 2025, with Hobart recording a 0.9% increase in April and regional areas experiencing varied performance. After a challenging period from 2022 to 2024, Tasmania's property market is entering a recovery phase, supported by interest rate cuts, infrastructure investments, and continued lifestyle appeal for mainland buyers.
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Tasmania's property market is experiencing a gradual recovery in 2025, with median house prices reaching $712,000 in Hobart and $549,000 in regional areas.
Interest rate cuts in May 2025 to 3.85% and major infrastructure projects worth over $30 billion are expected to support moderate price growth of 1-3% annually over the next five years.
| Region | Median House Price (June 2025) | Annual Growth Rate | Forecast 2026 |
|---|---|---|---|
| Hobart | $712,000 | 2.16% | 3-5% growth |
| Launceston | $570,000 | 0.99% | 2-4% growth |
| Regional Tasmania | $549,000 | 2.84% | 3-5% growth |
| West & North West | $400,000-$570,000 | 5.55% | 4-6% growth |
| Southern Tasmania | $680,000 | 2.0% | 2-4% growth |
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.
What were the latest property price movements in Tasmania as of June 2025?
Tasmania's property market is showing signs of recovery as we reach mid-2025, with varied performance across different regions.
In Hobart, the median house price has reached $712,000 as of March 2025, representing a 2.16% year-on-year increase and a 0.45% monthly growth. Some high-end suburbs like Sandy Bay are now exceeding $1.4 million, while more affordable areas like Glenorchy, Moonah, and Brighton are attracting strong interest from first-home buyers.
Regional Tasmania is performing slightly better with an annual house price growth of 2.84% and a median price of $549,000. The West and North West regions are leading the charge with 5.55% annual growth, making them the strongest performers in the state.
Northern Tasmania, including Launceston, has a median house price of $570,000 and median unit price of $475,000, showing modest growth of 0.99% annually. Southern Tasmania maintains higher prices at $680,000 for houses and $510,000 for units, with 2.0% annual growth.
Transaction volumes have increased by 11.1% in 2024, indicating renewed buyer confidence and market recovery after the challenging period of 2022-2023.
Which areas in Tasmania have seen the biggest price increases recently?
Several Tasmanian suburbs and regions have emerged as top performers in terms of price growth during 2024 and early 2025.
The West and North West regions lead with 5.55% annual growth, driven by affordability and lifestyle appeal. Within these regions, towns like St Helens have experienced exceptional growth, with over 10% price increases in a single quarter due to infrastructure investment and coastal lifestyle demand.
In Hobart, North Hobart stands out with an impressive 22.2% annual growth in 2024, reaching a median house price of $978,000. This trendy suburb has benefited from urban renewal, vibrant nightlife, and high-end developments like The Rox.
Kingston, with a median house price of $743,000 and 1.4% annual growth, is emerging as a promising area, particularly with speculation about hosting a performance centre for Tasmania's AFL team. Moonah and Glenorchy have also shown resilience, bucking the broader Hobart trend with positive price movements.
Park Grove and other rural coastal areas are experiencing rapid growth due to increased demand for lifestyle properties and the rise of remote working arrangements post-pandemic.
How much have property prices increased in Tasmania over the past year?
Property price growth in Tasmania has been modest but positive over the past year, marking a turnaround from the decline experienced in 2022-2023.
Statewide, transaction data shows varied performance across different property types and regions. Houses in Hobart have increased by 2.16% year-on-year, while some sources report segments showing up to 11% growth, particularly in premium suburbs.
Regional Tasmania has outperformed the capital with 2.84% annual growth, driven by strong demand in coastal towns and lifestyle destinations. The most significant gains have been in the West and North West regions at 5.55%, while the South East recorded 2.0% growth.
| Property Type | Location | Annual Price Change |
|---|---|---|
| Houses | Hobart | +2.16% to +11% |
| Houses | Regional Tasmania | +2.84% |
| Houses | West & North West | +5.55% |
| Units | Northern Tasmania | +$32,500 (record high $475,000) |
| Units | Southern Tasmania | Stable at $510,000 |
| Houses | St Helens | +10% (quarterly) |
| Houses | North Hobart | +22.2% |
It's important to note that Tasmania's property market is still recovering from its peak in March 2022, with prices currently sitting approximately 11.1% below that high point, indicating room for further growth.
What are the current median property prices across Tasmania's major areas?
As of June 2025, median property prices across Tasmania show significant variation between regions and property types.
Hobart maintains the highest prices in the state, with median house prices ranging from $712,000 to $940,000 depending on the source and specific suburbs included. Premium suburbs like Sandy Bay exceed $1.4 million, while more affordable options in Glenorchy, Moonah, and Brighton offer better value for first-home buyers.
Regional areas present more affordable options, with the overall regional median at $549,000. However, popular coastal towns command premium prices - Bicheno has reached $620,000 and St Helens sits at $570,000, both driven by lifestyle demand and limited supply.
Northern Tasmania, centered around Launceston, shows median house prices of $570,000 and unit prices of $475,000. Southern Tasmania commands higher prices at $680,000 for houses and $510,000 for units.
The most affordable areas remain in the West and North West regions, with prices ranging from $400,000 to $570,000, offering excellent value and showing the strongest growth potential. It's something we develop in our Australia property pack.
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What is the property price forecast for Tasmania in 2026?
Property price forecasts for Tasmania in 2026 suggest modest but steady growth, with most experts predicting increases between 1% and 3% annually.
Major banks and research institutions have provided varied forecasts for Hobart's property market. Westpac projects a 2% rise in property values, while NAB expects 2.4% growth. SQM Research presents a more cautious outlook with a base case between -3% and +2%, emphasizing that outcomes will depend heavily on interest rate movements and population growth.
The more optimistic KPMG forecast suggests 5.7% growth for houses and 5.3% for units in Hobart, indicating stronger confidence in the market's fundamentals. Regional areas are expected to continue outperforming the capital, particularly lifestyle destinations and towns benefiting from infrastructure investment.
Key drivers for 2026 growth include the Reserve Bank's interest rate cuts (already at 3.85% as of May 2025 with further cuts expected), major infrastructure projects including the Bridgewater Bridge and potential AFL stadium, and continued interstate migration attracted by Tasmania's lifestyle and relative affordability.
However, challenges remain with Tasmania's slow population growth (0.28% in 2024, the lowest among Australian states) and economic headwinds, including a projected 1.1% decline in gross state product for 2024/25.
Which property types are experiencing the strongest price growth?
Different property types in Tasmania are showing varied performance, with clear winners emerging in the current market.
Houses are generally experiencing the highest price increases, particularly in growth corridors and lifestyle locations. Houses in Hobart have outpaced units considerably, with a 1.4% quarterly growth compared to a -1.1% decline for units, representing the largest disparity among all Australian capitals.
Rural and coastal properties are seeing exceptional demand, especially those with water views which command an average premium of 15%. Towns like St Helens and Park Grove are experiencing rapid growth due to lifestyle appeal and the rise of remote working.
Land is emerging as a strong performer, with experts suggesting now is an opportune time to buy before further appreciation. The combination of limited supply and strong demand for new builds is driving land values higher across the state.
Interestingly, apartments and units in Northern Tasmania have reached record prices at $475,000, up $32,500 year-on-year, suggesting a shift in buyer preferences toward more affordable housing options in certain areas.
Tech-smart, energy-efficient homes are becoming increasingly sought after, catering to young professionals and tech workers who value sustainability and modern conveniences. Properties with outdoor spaces like gardens, decks, or patios continue to command premium prices post-pandemic.
How do current prices compare to 5 and 10 years ago?
Tasmania's property market has experienced dramatic growth over the past decade, despite recent corrections.
Over the past five years, median house prices in Tasmania have increased by an impressive 63%, though annual growth has recently slowed to just 0.2% as the market stabilizes after rapid appreciation. This represents a significant wealth gain for existing homeowners while creating affordability challenges for new entrants.
The ten-year perspective shows even more dramatic changes. Median house prices in Hobart have doubled in just 6.8 years, while regional Tasmania achieved this milestone even faster at 5.8 years. This represents one of the fastest doubling rates among Australian property markets.
Looking at the longer-term picture, over 20 years, regional Tasmania's median house price has risen an extraordinary 233%, from $169,000 to $449,000. This long-term growth trajectory demonstrates the market's fundamental strength despite short-term fluctuations.
To put this in perspective, properties that sold for $300,000 in 2015 are now worth approximately $489,000, while those purchased for $400,000 in 2020 at the market's pre-peak levels would now be valued around $600,000, even after the recent correction.
These figures highlight why Tasmania has been one of Australia's best-performing property markets over the medium to long term, rewarding patient investors with substantial capital gains.
What impact will the 2025 interest rate cuts have on property prices?
The Reserve Bank of Australia's decision to cut the cash rate to 3.85% in May 2025 is already showing positive effects on Tasmania's property market.
Each 0.25% rate cut increases borrowing capacity by approximately $12,000 for an average income earner, significantly expanding the pool of potential buyers. With expectations of further cuts throughout 2025, buyer sentiment has improved markedly, leading to increased transaction volumes and renewed price growth.
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.
Market analysis suggests that if the RBA delivers two or three additional rate cuts as expected, Tasmania's property prices could see accelerated growth of 5-7% by the end of 2025. This would add approximately $35,000 to $50,000 to a typical $700,000 Hobart property.
The impact is particularly pronounced in the investor market, where improved yields and lower holding costs are attracting renewed interest. First-home buyers are also benefiting from enhanced borrowing power, especially when combined with government incentives like stamp duty exemptions for properties up to $750,000.
However, the rate cuts are a double-edged sword. While they improve affordability from a borrowing perspective, they also risk reigniting rapid price growth, potentially offsetting affordability gains. The key will be whether housing supply can keep pace with renewed demand.
What major factors are driving property price changes in Tasmania?
Several key factors are influencing Tasmania's property market dynamics as we move through 2025.
1. Housing Supply Shortage: Tasmania is significantly underperforming on construction goals, missing quarterly targets by 600 houses. This chronic undersupply continues to put upward pressure on prices, particularly in desirable areas.
2. Infrastructure Investment: Over $30 billion in planned infrastructure spending over the next decade, including the Bridgewater Bridge, potential AFL stadium, and Hobart airport expansion, is creating economic optimism and attracting investment.
3. Interest Rate Environment: The RBA's rate cuts are improving borrowing capacity and buyer confidence, with expectations of further cuts driving market sentiment.
4. Interstate Migration: Despite overall slow population growth (0.28%), certain regions continue to attract mainland buyers seeking lifestyle changes, with interstate buyer activity up 23.3% in some periods.
5. Government Policies: Stamp duty exemptions for first-home buyers on properties up to $750,000 and the MyHome shared equity scheme are supporting demand, particularly in the sub-$750,000 market segment. The state government's commitment to build 10,000 new social and affordable homes by 2032 may help address supply issues. These comprehensive factors are detailed in our Australia property pack.
Which Tasmania suburbs offer the best growth potential for 2025-2026?
Several Tasmania suburbs stand out as having exceptional growth potential based on current market dynamics and expert predictions.
| Suburb | Current Median | Growth Drivers | Potential |
|---|---|---|---|
| Kingston | $743,000 | AFL facility speculation, 10min to CBD | High |
| Brighton | $565,000 | Affordability, new developments, family appeal | Very High |
| Moonah | $650,000 | Medium density zoning, urban renewal | High |
| Glenorchy | $600,000 | Development opportunities, transport links | High |
| Blackmans Bay | $850,000 | Low supply, 32 days on market, premium location | Moderate |
| St Helens | $570,000 | Bay of Fires gateway, 10%+ quarterly growth | Very High |
| Launceston | $470,000 | University campus, affordability, yields | High |
| Rokeby | $500,000 | New developments, infrastructure | High |
| Primrose Sands | $458,500 | Gentrification, beach lifestyle, apartments | Very High |
| New Norfolk | $463,000 | Heritage charm, 35km from CBD, value | Moderate |
The suburbs with the highest growth potential share common characteristics: proximity to planned infrastructure, relative affordability compared to established areas, lifestyle appeal, and tight supply conditions. Areas benefiting from Tasmania's AFL team facilities and associated development are particularly attractive for investors.
What risks could cause property prices to decline in Tasmania?
While the outlook is generally positive, several risk factors could potentially cause property prices to stagnate or decline in Tasmania.
Tasmania's economic challenges present the most significant risk, with the state forecast to be the only Australian state experiencing negative growth (-1.1%) in gross state product for 2024/25. This economic contraction could impact employment and buyer confidence.
Population growth at just 0.28% in 2024 - the lowest among Australian states - poses a long-term challenge. With natural increase of only 61 people and net interstate migration turning negative in some regions, demand could weaken without fresh population inflows.
Affordability constraints are reaching critical levels, with high price-to-income ratios potentially limiting future growth. Even with interest rate cuts, many buyers are priced out of the market, particularly in Hobart where median prices approach $1 million in some calculations.
The risk of oversupply exists if construction activity accelerates rapidly while demand wanes. With the government planning 10,000 new social and affordable homes by 2032, a sudden increase in supply could moderate price growth.
External economic shocks, interest rate volatility, or changes to investor regulations could also dampen demand. The market's recovery remains fragile, and consumer confidence is still tentative despite recent improvements.
Conclusion
Based on comprehensive market analysis and current trends, property prices in Tasmania are going up, but at a modest pace. The market has turned the corner from its 2022-2023 decline and is now showing steady recovery with annual growth rates between 0.2% and 5.55% depending on location. With interest rate cuts supporting buyer demand, major infrastructure investments on the horizon, and continued lifestyle appeal, Tasmania's property market is positioned for moderate growth of 1-3% annually over the next few years. While economic headwinds and slow population growth present challenges, the fundamental supply-demand imbalance and Tasmania's unique lifestyle advantages suggest the answer is: Yes.
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.
Property prices in Tasmania are experiencing a gradual recovery in 2025, marking a positive shift after the challenging 2022-2024 period when values declined from their peak.
With median house prices at $712,000 in Hobart and strong growth in regional areas, combined with supportive factors like interest rate cuts and infrastructure investment, Tasmania's property market offers cautious optimism for buyers and investors seeking long-term value in one of Australia's most lifestyle-oriented markets.
Sources
- 4one4 Property Co. - Tasmania 2025 Real Estate Market
- Real Estate Australia - Tasmania Growth Data
- OpenAgent - Best Areas to Buy Property in Tasmania
- Harrison Agents - Tasmanian Property Market Update
- First National - Tasmania Property Investment Tips
- Deltos Finance - Property Value Projections Tasmania 2025
- API Magazine - Tasmania's Best and Worst Property Markets
- BambooRoutes - Tasmania Real Estate Market Statistics
- Which Real Estate Agent - Hobart Property Market Update
- Property Update - Australian Property Market Predictions