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Tasmania's property market is gaining serious momentum as we reach mid-2025, with prices climbing steadily and rental demand at record highs. Property values in Tasmania have increased by an impressive 453% over the past decade, and experts forecast another 2.5-7% growth in 2025 despite the broader Australian market cooling in some regions.
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Tasmania's property market in 2025 offers strong investment potential with median house prices in Hobart around $685,000-$735,000 and regional areas offering properties as low as $170,000.
The market is characterized by tight supply, rising rents, and solid rental yields ranging from 2.5% in upscale suburbs to 8.2% in mining towns like Queenstown.
| Key Metric | Value | Trend |
|---|---|---|
| Hobart Median House Price | $685,000-$735,000 | ↑ 1.8% (2025) |
| 2025 Growth Forecast | 2.5-7% | Positive |
| Rental Vacancy Rate | Record Low | Tightening |
| Best Rental Yields | Up to 8.2% | Queenstown |
| Affordable Entry Price | From $170,000 | Regional Areas |
| Market Supply | 25% Drop in Listings | Very Tight |
| Infrastructure Projects | Multiple Major | Boosting Growth |
What types of properties can you buy in Tasmania in 2025?
Tasmania offers four main property types in 2025, each with distinct advantages and challenges for buyers.
Detached houses dominate the Tasmanian market and range from $170,000 in regional mining towns like Queenstown to $735,000 for median-priced homes in Hobart. These properties give you full land ownership and privacy, making them ideal for families or those seeking capital growth. However, they require more maintenance and have higher upfront costs than other property types.
Units and apartments concentrate in Hobart and Launceston, with median prices around $390,000-$400,000 in Launceston. They offer a more affordable entry point into the property market with less maintenance responsibility. The downsides include body corporate fees, smaller living spaces, and potentially lower capital growth in some areas.
Townhouses are gaining popularity in Tasmania's growing suburbs, offering a middle ground between houses and units. They typically feature newer builds with modern amenities but may come with strata fees and limited outdoor space. Vacant land lots in outer suburbs and regional areas allow custom builds, though buyers must factor in construction costs, potential delays, and planning approval requirements.
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Should you rent or buy property in Tasmania right now?
Buying property in Tasmania makes more financial sense than renting for most people planning to stay long-term or invest in 2025.
The Tasmanian rental market faces severe shortages with a 25% drop in available listings and record-low vacancy rates. Hobart's median weekly rent sits at $585 for houses, and finding affordable rentals has become increasingly difficult. While renting offers flexibility and no maintenance responsibilities, the scarcity of options and rising costs make it challenging for tenants.
Property ownership builds equity over time, and with forecasted growth of 2.5-4% in 2025, buyers can expect capital appreciation. Additionally, property owners can generate rental income in Tasmania's tight rental market. However, buying isn't cheaper than renting in most Hobart suburbs, except in some northern and regional areas where mortgage payments may match or undercut rent after recent rate cuts.
For investors or those planning to live in Tasmania for more than five years, buying property provides better long-term value despite high entry costs and limited affordable stock.
What are Tasmania's current property prices and future forecasts?
Tasmania's median house prices vary significantly across the state, with Hobart leading at $685,000-$735,000 in June 2025.
| Area | Median House Price (2025) | Annual Growth (2025) | 2025 Forecast Growth |
|---|---|---|---|
| Hobart | $685,000-$735,000 | 1.8% | 2.5-6% |
| Launceston | $585,000 | 2.8% | 2.8% |
| Devonport | $510,000 | 2.5% | 2.5% |
| Glenorchy | $612,500 | — | — |
| Moonah | $613,500 | — | — |
| Brighton | $565,000 | 6.4% yield | — |
| Queenstown | $170,000 | 8.2% yield | — |
The past decade saw extraordinary growth with regional Tasmanian house values increasing by 453%. In 2024, the market recorded nearly $6 billion in sales, the second-highest on record, creating renewed upward price pressure.
Expert forecasts for 2025 and beyond suggest continued growth of 2.5-7%, driven by limited housing supply, major infrastructure projects, and sustained lifestyle-driven demand from interstate and overseas buyers.
What trends are shaping Tasmania's property market in 2025?
Tasmania's property market in 2025 is experiencing strong demand coupled with extremely tight supply conditions.
Demand remains robust, particularly in growth suburbs and lifestyle regions, while housing supply continues to shrink with low vacancy rates and 25% fewer property listings compared to previous years. Some areas like North Hobart are showing double-digit annual growth despite the broader market's modest gains.
The rental market faces unprecedented pressure with rising rents and strong yields in affordable regions. Queenstown leads with 8.2% rental yields, followed by Zeehan at 7.8% and Brighton at 6.4%. Major infrastructure projects including the Bridgewater Bridge and Macquarie Point Stadium are boosting property values in surrounding suburbs.
Population growth continues as interstate migrants and expats seek Tasmania's lifestyle advantages, further intensifying competition for limited housing stock. These combined factors point to sustained upward pressure on both property prices and rents throughout 2025 and beyond.
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How do you buy property in Tasmania step by step?
Buying property in Tasmania follows a structured process that typically takes 30-90 days from offer to settlement.
First, determine your budget and secure mortgage pre-approval from a lender to understand your borrowing capacity. Next, search for properties using websites like realestate.com.au and domain.com.au, or work with reputable agencies such as Harcourts, Peterswald, or EIS Property.
Once you find a suitable property, arrange inspections including building and pest assessments. Submit your offer through the selling agent, and if accepted, sign the Standard Form Contract for Sale of Real Estate in Tasmania. Engage a conveyancer or solicitor immediately to review the contract and perform title and planning checks.
After contract signing, finalize your mortgage approval and pay the deposit. During the settlement period, your conveyancer handles all legal requirements. On settlement day, pay the remaining balance, and ownership transfers at the Land Titles Office. Finally, the property is registered in your name, and you receive the keys to your new Tasmanian home.
Where can you find reliable property listings and agencies?
Tasmania's property search starts with three major websites that dominate the Australian real estate market.
Realestate.com.au stands as the most visited property website in Australia, offering comprehensive listings across Tasmania with detailed search filters and market insights. Domain.com.au provides similar functionality with strong local agent connections, while property.com.au offers additional resources for buyers.
For professional assistance, Tasmania's top-rated real estate agencies include Harcourts, Peterswald for Real Estate, EIS Property, and Harrison Agents. These agencies consistently receive high client reviews for their local knowledge and service quality. Many buyers also rely on agent review platforms to identify specialists in specific suburbs or property types.
Local knowledge proves invaluable in Tasmania's diverse market, so using suburb guides and connecting with agents who specialize in your target areas will provide insights into community dynamics, upcoming developments, and realistic pricing expectations.
What can you afford at different budget levels in Tasmania?
Tasmania's property market offers options across all budget ranges, from entry-level regional homes to premium waterfront estates.
| Budget Range | Property Options | Locations | Trade-offs |
|---|---|---|---|
| Under $250,000 | Entry-level houses | Queenstown, Zeehan, Rosebery | Remote location, fewer amenities, but high rental yields |
| $400,000-$600,000 | Family homes, newer builds | Devonport, Burnie, Brighton | Commute to Hobart, growing communities, good yields |
| $700,000-$1M | Quality homes, inner suburbs | Kingston, Moonah, Glenorchy | Higher competition, lower yields, better amenities |
| $1M+ | Premium properties | Battery Point, Sandy Bay, Bellerive | Premium pricing, lower yields, prestige locations |
Budget constraints significantly impact location choices and property features. Under $250,000 buyers find opportunities in remote mining towns with excellent rental yields but limited local services. The $400,000-$600,000 range opens up regional cities and outer Hobart suburbs with family-friendly communities.
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Which areas of Tasmania offer the best value in 2025?
Tasmania's property market divides into three distinct categories: affordable regions, up-and-coming suburbs, and established upscale areas.
Affordable areas like Queenstown, Zeehan, and Rosebery offer entry prices as low as $170,000 with rental yields reaching 8.2%. These remote locations suit investors seeking high returns but come with limited amenities and services. Mining and tourism drive their economies, providing stable rental demand despite the isolation.
Up-and-coming suburbs including Brighton, Glenorchy, and Kingston present growth potential with median prices between $565,000-$613,500. These areas benefit from improving infrastructure, growing families, and proximity to Hobart while still offering reasonable entry points. They're developing rapidly but require tolerance for ongoing construction and longer commutes.
Upscale neighborhoods like Battery Point, Sandy Bay, North Hobart, and Bellerive command premium prices above $1 million. These prestigious locations offer waterfront views, heritage architecture, top schools, and walking distance to city amenities. However, they deliver lower rental yields around 2.5-3.5% and face intense buyer competition.
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.
What's life like for expats living in Tasmania?
Living in Tasmania as an expat in 2025 offers a unique blend of natural beauty, community connection, and relaxed lifestyle.
Tasmania provides excellent work-life balance with minimal commute times, access to pristine wilderness, and a strong focus on local produce and artisanal culture. The pace of life is notably slower than mainland capitals, which many expats find refreshing after years in bustling cities. Communities are welcoming to newcomers, with growing expat and interstate populations creating diverse social networks.
The state offers support through Skilled Migration programs and community hubs that ease the transition for international arrivals. Day-to-day life revolves around outdoor activities, farmers markets, and local events rather than big-city entertainment. While you'll find fewer international restaurants, shopping options, and cultural venues compared to Sydney or Melbourne, Tasmania compensates with genuine community connections and unparalleled natural experiences.
Healthcare and education systems are solid, though specialist services may require trips to Hobart or Melbourne. The climate varies significantly between coastal and inland areas, with Hobart enjoying mild conditions while the highlands experience proper winters with snow.
What rental yields can property investors expect?
Tasmania offers some of Australia's strongest rental yields in 2025, particularly in affordable regional areas.
High-yield locations lead with Queenstown at 8.2%, Zeehan at 7.8%, and Brighton at 6.4%. These areas attract steady tenant demand from mining workers, essential service employees, and families seeking affordable housing. The combination of low purchase prices and consistent rental income makes them attractive for yield-focused investors.
Mid-range suburbs in Launceston and Devonport typically return 4-5% yields, balancing rental income with capital growth potential. These areas appeal to young families and professionals who prioritize affordability over proximity to Hobart.
Premium suburbs like Battery Point and Sandy Bay offer lower yields around 2.5-3.5% but provide stronger capital growth prospects and attract quality long-term tenants. Tenant preferences across Tasmania prioritize affordability, proximity to employment, and access to basic amenities. The extreme shortage of rental properties means landlords can be selective with tenants while maintaining high occupancy rates.
How profitable are short-term rentals in Tasmania?
Short-term rentals in Tasmania can generate significantly higher returns than traditional leases, especially in tourist hotspots.
Prime locations include Hobart CBD, Launceston's historic quarters, and coastal towns along the East Coast. These areas benefit from year-round tourism, though summer months (December-March) and major events like Dark Mofo drive peak earnings. Properties in these locations can achieve 15-20% gross yields when well-managed.
Earnings vary dramatically by season and location. A two-bedroom apartment in Hobart might earn $200-300 per night during peak season but drop to $100-150 in winter. Coastal properties experience even more pronounced seasonal swings.
Local councils increasingly regulate short-term rentals in 2025, with some areas imposing caps on rental nights per year or requiring specific permits. Hobart City Council and other municipalities have introduced planning requirements and safety standards that hosts must meet. Always verify current council regulations before purchasing an investment property, as rules vary significantly between local government areas and continue evolving to balance tourism benefits with housing availability for locals.
Is buying property in Tasmania worth it in 2025?
Buying property in Tasmania in 2025 makes strong financial sense for most buyers, whether for personal use, rental income, or capital growth.
For personal use, Tasmania offers an enviable lifestyle with property prices still below mainland capitals despite recent growth. The combination of natural beauty, community spirit, and improving infrastructure makes it attractive for families and retirees. With rental options scarce and expensive, buying provides housing security in a tightening market.
Investment prospects remain robust with rental yields ranging from 2.5% in premium suburbs to 8.2% in regional areas. The 25% drop in rental listings and record-low vacancy rates ensure strong tenant demand. While Hobart's median prices have reached $685,000-$735,000, regional opportunities from $170,000 offer accessible entry points.
Capital growth forecasts of 2.5-7% for 2025 suggest continued appreciation, supported by major infrastructure projects, sustained interstate migration, and Tasmania's limited land supply. The market's 453% growth over the past decade demonstrates long-term potential. However, buyers must navigate high competition in popular areas and accept that supply constraints will continue pushing prices upward, making early entry advantageous.
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.
Tasmania's property market in 2025 presents compelling opportunities across all buyer categories, from first-home purchasers to seasoned investors.
The combination of steady price growth, exceptional rental yields in regional areas, and lifestyle benefits positions Tasmania as one of Australia's most promising property markets for those willing to act decisively in a supply-constrained environment.
Sources
- 4one4 Tasmania 2025 Real Estate Market Report
- RealEstate.com.au Tasmanian Suburbs Analysis
- Deltos Finance Tasmania Property Projections 2025
- Anglicare Tasmania Rental Affordability Snapshot
- OpenAgent Best Hobart Investment Suburbs
- Harrison Agents Tasmanian Property Market Update
- API Magazine Tasmania Property Markets 2025
- TUTas Tasmanian Rents Report March 2025
- Tasmania Short Stay Accommodation Act
- BambooRoutes Tasmania Real Estate Market Analysis