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Yes, the analysis of Tasmania's property market is included in our pack
Tasmania's property market is experiencing modest but steady growth in 2025, with median house prices reaching $668,000 in Hobart and strong rental yields attracting interstate investors. The state's property market shows resilience despite national economic uncertainties, with rental vacancy rates at historic lows and buyer activity increasingly driven by mainland investors seeking lifestyle and investment opportunities.
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Tasmania's property market shows steady growth with Hobart leading at $668,000 median house prices and regional areas performing well with strong rental yields.
Interstate investors now account for 47% of all investor purchases, driving demand in a market with historically low vacancy rates and improving construction activity.
| Market Indicator | Current Status | Trend/Forecast |
|---|---|---|
| Hobart Median House Price | $668,000 | +1.3% year-on-year, 3.2% growth forecast 2025 |
| Launceston Median House Price | $585,000 | +2.8% projected annual growth |
| Regional Tasmania Median | $517,000-$620,000 | +3.75% year-on-year growth |
| Hobart Rental Vacancy | 0.6% | Among Australia's tightest markets |
| Interstate Investor Share | 47% of investor purchases | Up from 32% two years ago |
| Days on Market (Hobart) | 43 days houses, 42 days units | 14% faster than previous year |
| Housing Approvals | 2,387 units (year to April 2025) | Lowest since 2016, supply lagging demand |
How have property prices in Tasmania changed over the last 12 months, and what's the current median house and unit price in the major cities?
Tasmania's residential property market has experienced modest growth over the past 12 months, with statewide property prices rising approximately 2.1%.
Hobart's median house price currently sits at $668,000 to $685,000, representing a 1.3% year-on-year increase despite being down 7.3% from the 2022 peak. The unit market in Hobart shows similar stability with consistent demand from both owner-occupiers and investors.
Launceston's property market displays stronger momentum with median house prices ranging from $585,000 to $628,750, while units average around $470,000. The city has maintained steady growth throughout 2024-2025, supported by its affordability compared to Hobart and strong regional economic fundamentals.
Regional Tasmania continues to attract buyers seeking lifestyle changes and investment opportunities, with median house prices varying from $517,000 to $620,000 depending on location and proximity to major centers. Coastal and scenic regional areas command premium prices within this range.
As of September 2025, Tasmania's property market shows resilience with prices stabilizing after the significant corrections seen in 2022-2023.
What's the year-on-year growth rate in Hobart, Launceston, and regional towns compared to the national average?
Tasmania's major markets are showing varied growth patterns that generally trail the national average but demonstrate regional strength.
Hobart has achieved year-on-year growth of 1.3% to 1.59%, reflecting the capital's mature market status and recent price corrections. While modest, this growth indicates market stabilization and renewed buyer confidence after the challenging 2022-2023 period.
Launceston outperforms other Tasmanian markets with projected annual growth of 2.8%, driven by affordability advantages over Hobart and increased interest from mainland buyers. The city benefits from strong rental demand and improving economic conditions in northern Tasmania.
Regional Tasmania leads the state's growth with 3.75% year-on-year increases, as buyers seek lifestyle properties and investment opportunities outside major centers. Areas like Devonport, Burnie, and coastal regions show particularly strong performance due to their appeal to tree-changers and retirees.
The national average growth rate sits at 3.3% for capital cities, meaning Tasmania overall trails slightly behind the broader Australian market. However, this lower growth rate makes Tasmanian properties more accessible to first-home buyers and investors seeking steady returns rather than speculative gains.
How many properties are currently on the market in Tasmania, and how does that number compare with the past three years?
Tasmania's property market activity shows signs of recovery with approximately 2,399 properties sold in the March quarter of 2025.
Current listings remain elevated compared to the historic lows experienced in 2022 and 2023, when the market faced severe stock shortages. This increase in available properties provides buyers with more choice and has contributed to the normalization of market conditions across the state.
The three-year comparison reveals significant market evolution, with 2022-2023 representing the tightest supply conditions in decades due to pandemic-related factors and interstate migration surges. The 2024-2025 period shows gradual improvement in stock levels, though still below long-term averages.
Building approvals have reached concerning lows, with recent approvals near historic minimums, which could constrain future supply growth. This supply-demand imbalance continues to support price stability and rental growth across Tasmania.
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What's the current rental vacancy rate, and how have rental yields shifted across Hobart, Launceston, and regional Tasmania?
| Location | Vacancy Rate | Rental Yield |
|---|---|---|
| Hobart | 0.6% | 4.1% (houses) |
| Launceston | Low (estimated 1-1.5%) | 4.5-5.0% (houses) |
| Regional Tasmania (houses) | Low (estimated 1-2%) | 4.4-4.8% |
| Regional Tasmania (units) | Low (estimated 1-2%) | 4.8-5.2% |
| Tasmania Average | Under 1% | 4.1-4.8% |
| Hobart Weekly Rent | N/A | $600 median |
| Annual Rent Growth | N/A | 7% in 2024 |
What is the average time a property spends on the market before selling, and how has this trend evolved recently?
Tasmania's property market has experienced significant improvements in sales velocity, indicating strengthening buyer confidence and market conditions.
Hobart properties now spend an average of 43 days on the market for houses and 42 days for units, representing a 14% improvement in sales speed compared to the previous year. This acceleration demonstrates renewed buyer activity and improved market sentiment in the capital.
The trend evolution shows a marked improvement from the sluggish conditions experienced in early-to-mid 2024, when properties often remained on the market for extended periods due to buyer hesitancy and economic uncertainty.
Launceston and regional areas are experiencing similar improvements in sales velocity, though specific data varies by location and property type. Coastal and lifestyle properties continue to attract quicker sales due to ongoing interstate interest.
As of September 2025, the faster selling times reflect improving market conditions, better aligned pricing expectations between buyers and sellers, and increased confidence in Tasmania's economic outlook.
How many first-home buyers, investors, and interstate buyers are active in the Tasmanian market right now, and how do those proportions compare to previous years?
Tasmania's buyer composition has shifted dramatically, with interstate investors now dominating investment activity in the state.
Mainland investors accounted for nearly 47% of all investor purchases in Q1 2025, representing a substantial increase from 32% just two years ago. This surge reflects Tasmania's appeal as an affordable investment destination with strong rental yields and lifestyle benefits.
First-home buyer activity remains elevated, supported by Tasmania's relative affordability compared to mainland capitals and government assistance programs. These buyers continue to represent a significant portion of the owner-occupier market, particularly in regional areas and outer suburbs.
Interstate buyers overall have become a major market force, driven by lifestyle considerations, retirement planning, and investment opportunities. The trend accelerated during the pandemic and has maintained momentum through 2025, fundamentally changing Tasmania's property market dynamics.
Local investor activity has been somewhat displaced by mainland competition, though Tasmanian investors remain active in familiar local markets. The changing buyer mix has implications for price growth, rental demand, and long-term market development across the state.
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What's the forecast for interest rates and lending conditions in Australia, and how might they specifically impact Tasmanian buyers?
Australia's interest rate outlook suggests modest relief for property buyers, with potential rate cuts expected in late 2025.
Economic forecasts indicate the Reserve Bank of Australia may implement gradual interest rate reductions as inflation pressures ease and economic growth moderates. These cuts would reduce borrowing costs and improve affordability for Tasmanian property buyers, particularly first-home buyers and upgraders.
Lending conditions are showing signs of improvement, with banks gradually easing serviceability requirements and offering more competitive rates for quality borrowers. However, construction delays and cost pressures continue to impact new home lending and development finance across Tasmania.
For Tasmanian buyers specifically, lower interest rates would enhance affordability in a market that already offers competitive prices compared to mainland capitals. This could stimulate additional demand from both local and interstate buyers, potentially supporting price growth throughout 2026.
The combination of improved lending conditions and lower rates could particularly benefit Tasmania's first-home buyer segment and interstate investors seeking exposure to the state's rental markets.
How many new housing approvals and construction projects are currently underway in Tasmania, and how do they compare with demand?
Tasmania faces a significant housing supply challenge with construction activity at concerning low levels.
Housing approvals have dropped to approximately 2,387 units in the year to April 2025, representing the lowest level since 2016. This dramatic decline in approved projects creates a substantial gap between housing demand and future supply availability.
Current construction projects underway are insufficient to meet Tasmania's housing needs, with supply lagging behind demand across all market segments. The shortage is compounded by slower construction times, workforce challenges, and increased building costs affecting project feasibility.
The supply-demand imbalance is particularly acute in Hobart and popular regional areas, where population growth and interstate migration continue to drive housing demand. This shortage supports continued price growth and rental increases across the state.
Government initiatives like the $10,000 per dwelling Density Incentive Grant aim to stimulate construction, but the impact on overall supply levels remains limited. Without significant increases in approved projects and construction activity, Tasmania's housing shortage will likely persist through 2026-2027.
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What are the projected population growth and migration trends for Tasmania, and how are they expected to influence housing demand?
Tasmania's population dynamics present a complex picture with modest growth but changing demographic patterns affecting housing demand.
As of June 2024, Tasmania's population reached 575,366 with a growth rate of 0.28%—the lowest among all Australian states. This slow population growth reflects ongoing challenges in retaining young families and professionals, with net migration outflow particularly evident among the 25-44 age group.
Overseas migration is providing some offset to local population declines, but the numbers remain insufficient to drive sustained population growth. The state continues to attract retirees and lifestyle seekers, but struggles to retain working-age families who often relocate to mainland opportunities.
Migration patterns show continued interest from interstate buyers and investors, even if permanent relocation numbers remain modest. This creates demand for investment properties and holiday homes while not necessarily driving sustained population-based housing demand.
The combination of slow population growth and persistent housing supply shortages creates a unique market dynamic where modest demand still exceeds available housing stock, supporting price stability and rental growth across Tasmania.
What government incentives, grants, or tax policies are currently affecting buyers and investors in Tasmania?
Tasmania offers several targeted incentives designed to address housing supply challenges and support property development across the state.
The $10,000 per dwelling Density Incentive Grant represents a significant policy initiative targeting mid to high-density construction projects. This scheme supports developers building up to 50 dwellings per project, aiming to increase housing density and address supply shortages in key locations.
National tax incentives also benefit Tasmanian property development, particularly the reduced withholding tax rates for eligible build-to-rent developments introduced in January 2025. These policies encourage institutional investment in rental housing, potentially increasing rental stock across the state.
First-home buyer assistance programs continue to operate at both state and federal levels, providing grants and stamp duty concessions that support entry-level market activity. These programs are particularly valuable in Tasmania given the state's relative affordability compared to mainland capitals.
It's something we develop in our Australia property pack.
How are economic indicators such as employment growth, tourism numbers, and average household income shaping housing demand in the state?
Tasmania's economic indicators present a mixed picture that influences housing demand patterns across different market segments.
Employment growth in Tasmania remains steady but below the national pace, limiting the purchasing power of local buyers and contributing to the modest population growth rates. However, stable employment conditions support existing homeowner confidence and rental demand from the local workforce.
Tourism numbers show robust performance, driving demand for short-term accommodation properties and supporting regional property markets popular with visitors. This tourism strength creates investment opportunities in areas like the east coast, Cradle Mountain region, and urban Hobart locations.
Average household income in Tasmania trails mainland states, affecting local buying power but also maintaining affordability advantages that attract interstate buyers. The income differential supports Tasmania's appeal as an affordable lifestyle destination for retirees and semi-retirees.
Economic uncertainty at the national level is tempering market enthusiasm, yet Tasmania's lifestyle appeal continues to attract interstate interest despite economic headwinds. The state's economic stability, while modest, provides a foundation for continued property market resilience.
What are expert forecasts for property price growth or decline in Tasmania over the next one, three, and five years, and how do they differ between Hobart, Launceston, and regional areas?
| Location | 2025 Forecast | 3-Year Outlook (2025-2028) | 5-Year Projection (2025-2030) |
|---|---|---|---|
| Hobart Houses | 3.2% (optimistic: 5.7%) | 2.5-4% annually | 2-3.5% annually |
| Launceston Houses | 2.8% projected growth | 2.5-3.5% annually | 2-3% annually |
| Regional Tasmania | 2.5-3.75% growth | 2-3% annually | 1.5-2.5% annually |
| Tasmania Overall | 2-4% statewide | 2-3.5% annually | 2-3% annually |
| National Context | Trailing major capitals | Below Sydney/Melbourne | Steady but unspectacular |
| Risk Factors | Population growth, supply | Economic drivers needed | Demographic challenges |
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 presents a compelling opportunity for buyers seeking steady growth and strong rental returns in an affordable, lifestyle-focused environment.
While growth forecasts remain modest compared to major capitals, the combination of low vacancy rates, interstate investor interest, and government incentives creates a foundation for sustainable property market performance through 2025-2030.
It's something we develop in our Australia property pack.
Sources
- Mortgage Choice - Property Values in Tasmania Right Now
- Deltos Finance - Tasmania Property Value 2025 Projections
- Savings.com.au - Tasmania Rental Yield
- REA - Growth Momentum Builds
- PIPA - Taking the Tassie Market's Temperature
- OpenAgent - Hobart Property Market
- REA - Launceston Property Market
- Property Update - Australian Property Market