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Yes, the analysis of Tasmania's property market is included in our pack
Thinking about buying a 3-bedroom apartment in Hobart? It’s a great area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other suburbs like Sandy Bay or Battery Point where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Tasmania Property Pack.
Will property prices increase in Tasmania in 2025?
Yes, property prices in Tasmania are expected to rise in 2025, driven by a combination of high demand and limited supply of housing.
Backed by our fresh, in-depth market analysis, we’re confident that Tasmania remains an attractive market for both domestic and international investors.
While there are some economic challenges like inflation and rising interest rates, the main drivers behind Tasmania’s price growth are expected to persist.
Demand, especially in popular areas, continues to outstrip supply, making significant price declines unlikely. Tasmania's natural beauty and lifestyle appeal keep drawing in buyers from across Australia and beyond.
Signals pointing to a property price increase in Tasmania
Here are some factors suggesting prices could increase:
The ongoing shortage of housing supply, particularly in desirable areas, is expected to continue into 2025. With demand remaining strong, this lack of supply will likely push up prices.
Tasmania's appeal as a lifestyle destination is growing, attracting more interstate and international buyers. This increased demand is expected to drive up property prices, especially in coastal and scenic regions.
Government infrastructure projects aimed at improving connectivity and amenities are set to enhance property values, particularly in areas benefiting from these developments.
The trend of remote working is encouraging more people to relocate to Tasmania, seeking a better quality of life. This shift is expected to bolster demand for housing, contributing to price increases.
Tasmania's tourism industry is recovering and expanding, leading to increased interest in investment properties and holiday homes, which could drive up prices in popular tourist areas.
Signals pointing to a property price decrease in Tasmania
Here are some factors suggesting prices could fall:
Rising interest rates are making it more challenging for buyers to secure affordable financing, which could dampen demand and slow price growth.
Economic uncertainties, including inflation and cost of living pressures, may impact buyer confidence and reduce the number of active buyers in the market.
Potential changes in government policies, such as stricter regulations on property investment, could affect investor activity and influence market dynamics.
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If property prices go up in Tasmania, how much would they increase by?
If real estate prices in Tasmania were to rise in 2025, the increase would likely be around 3% to 7% of their 2024 values.
Typically, real estate in growing markets like Tasmania appreciates by approximately 3% to 7% annually over the long term. However, fluctuations can occur depending on factors such as region, season, and property type.
It means that, if you spot a charming 2-bedroom cottage in Hobart for 500,000 AUD today, don't be surprised if it's priced between 515,000 and 535,000 AUD this time next year.
To give you a better understanding, here is a table that shows 7 types of Tasmanian real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 3%, 5%, and 7%.
| Type of Property | Average Price in 2024 (AUD) | Price in 2025 (3% increase) | Price in 2025 (5% increase) | Price in 2025 (7% increase) |
|---|---|---|---|---|
| Cottage (60 sqm / 646 sqft) | AUD 600,000 | AUD 618,000 | AUD 630,000 | AUD 642,000 |
| Modern Apartment (75 sqm / 807 sqft) | AUD 800,000 | AUD 824,000 | AUD 840,000 | AUD 856,000 |
| Luxury Penthouse (100 sqm / 1,076 sqft) | AUD 1,500,000 | AUD 1,545,000 | AUD 1,575,000 | AUD 1,605,000 |
| Studio (30 sqm / 323 sqft) | AUD 300,000 | AUD 309,000 | AUD 315,000 | AUD 321,000 |
| Loft (80 sqm / 861 sqft) | AUD 1,000,000 | AUD 1,030,000 | AUD 1,050,000 | AUD 1,070,000 |
| Townhouse (150 sqm / 1,615 sqft) | AUD 2,000,000 | AUD 2,060,000 | AUD 2,100,000 | AUD 2,140,000 |
| Investment Property (50 sqm / 538 sqft) | AUD 500,000 | AUD 515,000 | AUD 525,000 | AUD 535,000 |
Everything you need to know is included in our Property Pack for Tasmania
If real estate prices go up in Tasmania, which areas are likely to see the biggest increases?
Today, people who want to move to Tasmania are looking for natural beauty, but they also want modern conveniences and vibrant community life, which Hobart delivers. Hence, we could see a price increase there in 2025.
Also, lately, there's been a shift toward more youthful, vibrant neighborhoods, and Launceston has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Tasmanian market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| Hobart CBD | High | Recent development of luxury housing projects and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand. |
| Battery Point | High | Expected rise due to limited housing stock, upcoming renovations to heritage buildings, and growing demand for prime properties in central Hobart. |
| Sandy Bay | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| Launceston CBD | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
| West Hobart | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| North Hobart | Medium | Investment in local infrastructure, such as the extension of tram lines and renovation of historic areas, is boosting long-term value. |
| Bellerive | Medium-High | With new cultural and commercial spaces being developed, this trendy neighborhood is seeing increased demand from both residents and investors. |
| Launceston Suburbs | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Kingston | Medium-High | Its proximity to Hobart, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| New Town | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| South Hobart | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Richmond | High | Upcoming restoration of historic sites and high-profile cultural projects are driving a renewed focus on this central, historic location. |
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Tasmania?
In 2025, Tasmania's real estate trends focus on tech-smart, energy-efficient homes, larger properties in scenic areas, homes with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Homes:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025.
- Family-Sized Homes in Scenic Areas:
With a growing demand for larger living spaces, especially among families, areas near Hobart and Launceston are seeing increased interest. Proximity to natural landscapes and good schools is a major factor driving value.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like gardens, decks, or patios have become highly desirable. In Tasmania, where natural beauty is abundant, these features offer a much-needed escape and are likely to drive up property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
Tasmania's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the island’s green goals, leading to price appreciation in this category.
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