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
If you're a foreigner thinking about buying property in Tasmania, you're probably wondering what the market actually looks like right now and whether it's a realistic option for you.
In this article, we break down current housing prices in Tasmania, market momentum, what you can realistically buy as a foreign buyer, and where the best opportunities might be in 2026.
We constantly update this blog post to keep the information as fresh as possible.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Tasmania.
How's the real estate market going in Tasmania in 2026?
What's the average days-on-market in Tasmania in 2026?
As of early 2026, residential properties in Hobart typically sell within about 30 days, while homes in regional Tasmania tend to sit on the market closer to 35 to 40 days.
Most typical listings in Tasmania fall somewhere between 25 and 45 days on market, with well-priced family homes in popular suburbs often moving faster and more unusual properties or ambitious price tags stretching that timeline considerably.
Compared to one or two years ago, days-on-market in Tasmania have stabilized after a period of rapid sales during the pandemic boom, meaning buyers now have a bit more breathing room but shouldn't expect endless negotiation windows either.
Are properties selling above or below asking in Tasmania in 2026?
As of early 2026, most residential properties in Tasmania sell around 2.5% to 4% below the original asking price, with Hobart properties typically discounted less than those in regional areas.
The majority of Tasmanian properties, roughly 70% to 80%, sell at or below asking price, and while some well-presented homes in tight markets do attract competing offers, true bidding wars remain the exception rather than the rule, so we're quite confident in this pattern.
Properties most likely to see above-asking sales in Tasmania are renovated family homes in North Hobart, Battery Point, and Sandy Bay, where limited stock and strong lifestyle appeal can push motivated buyers into competition.
By the way, you will find much more detailed data in our property pack covering the real estate market in Tasmania.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Australia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What kinds of residential properties can I realistically buy in Tasmania?
What property types dominate in Tasmania right now?
In Tasmania, the residential market is dominated by separate houses at around 88% of all occupied private dwellings, with townhouses, apartments, and units making up just about 12% combined.
The single property type representing the largest share of Tasmania's market is the standalone detached house, which means most buyers will find themselves looking at properties with land and traditional suburban layouts.
Detached houses became so prevalent in Tasmania because the state developed with abundant land, low-density planning traditions, and a population that historically preferred standalone homes with gardens over apartment living.
If you want to know more, you should read our dedicated analyses:
Are new builds widely available in Tasmania right now?
New-build properties represent a relatively small share of Tasmania's residential listings, perhaps 10% to 15% of what's available at any given time, so buyers looking specifically for brand-new homes will find their options more limited than in faster-growing mainland markets.
As of early 2026, the highest concentration of new-build developments in Tasmania is found in the outer growth corridors of Greater Hobart, particularly suburbs like Kingston, Gagebrook, Brighton, and areas covered by recent Housing Land Supply Orders such as Mornington in Clarence.
Get fresh and reliable information about the market in Tasmania
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
Which neighborhoods are improving fastest in Tasmania in 2026?
Which areas in Tasmania are gentrifying in 2026?
As of early 2026, the neighborhoods in Tasmania showing the clearest signs of gentrification are Moonah, New Town, and parts of Glenorchy in Greater Hobart, along with lifestyle pockets like Kingston and Margate south of the city.
In these areas, visible changes include the arrival of specialty coffee shops and brunch cafes along Main Road in Moonah, a wave of heritage home renovations in New Town, and a noticeable shift toward younger professional renters and families replacing older residents.
Over the past two to three years, these gentrifying Tasmanian neighborhoods have seen estimated price appreciation of around 15% to 25%, though street-by-street variation is significant and some blocks have outperformed their neighbors dramatically.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Tasmania.
Where are infrastructure projects boosting demand in Tasmania in 2026?
As of early 2026, the areas in Tasmania where major infrastructure projects are most clearly boosting housing demand are the northern Hobart corridor (Bridgewater, Brighton, Gagebrook) and the waterfront zone near Hobart's CBD around Macquarie Point.
The specific projects driving this demand include the New Bridgewater Bridge, which will dramatically improve commute reliability for northern suburbs, and the Macquarie Point redevelopment, a mixed-use precinct that will add housing, jobs, and amenities near the waterfront.
The New Bridgewater Bridge is expected to be completed by mid-2026 according to official government timelines, while the Macquarie Point precinct will develop progressively over several years with different stages coming online through the late 2020s.
In Tasmania, the typical price impact from infrastructure projects tends to be modest at announcement (perhaps 3% to 5% premium) but can grow to 10% to 15% or more once construction is visibly underway and completion becomes certain.
We have made this infographic to give you a quick and clear snapshot of the property market in Australia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
What do locals and insiders say the market feels like in Tasmania?
Do people think homes are overpriced in Tasmania in 2026?
As of early 2026, most locals in Tasmania feel that homes are overpriced relative to local wages, though investors and newcomers from Sydney or Melbourne often consider prices reasonable compared to where they came from.
When arguing homes are overpriced, Tasmanians typically point to the fact that median house prices have roughly doubled in many suburbs since 2015 while local wages have grown far more slowly, making homeownership feel out of reach for many local workers.
On the other hand, those who believe prices are justified often cite Tasmania's extremely tight rental market, with Hobart vacancy rates around 0.3%, as evidence that underlying demand is genuine and prices are supported by real housing scarcity.
Tasmania's price-to-income ratio sits higher than the Australian regional average, with Hobart households needing roughly 8 to 9 times the median household income to buy a median-priced home, compared to around 6 to 7 times in many other regional centers.
What are common buyer mistakes people regret in Tasmania right now?
The most frequently cited buyer mistake in Tasmania is underestimating building condition issues, particularly problems with damp, poor ventilation, and inadequate insulation in the state's older housing stock, which can lead to expensive remediation work after purchase.
The second most common regret is assuming that being "near Hobart" automatically means an easy commute, when in reality Tasmania's limited road network creates traffic pinch points that make some technically close suburbs feel much further away during peak hours.
If you want to go deeper, you can check our list of risks and pitfalls people face when buying property in Tasmania.
It's because of these mistakes that we have decided to build our pack covering the property buying process in Tasmania.
Get the full checklist for your due diligence in Tasmania
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
How easy is it for foreigners to buy in Tasmania in 2026?
Do foreigners face extra challenges in Tasmania right now?
Overall, foreigners face a moderately high level of difficulty buying property in Tasmania compared to local buyers, primarily because of federal restrictions on what types of property they can purchase and additional taxes that apply specifically to foreign buyers.
The main legal restriction is that from April 2025 to March 2027, foreign persons are banned from purchasing established dwellings in Australia, meaning most foreign buyers in Tasmania must focus on new-build properties or vacant land approved for development, and all purchases require Foreign Investment Review Board approval.
Beyond the legal hurdles, foreigners in Tasmania often struggle with the small-market nature of the state, where fewer agents have experience with international transactions, settlement processes assume local bank accounts and identification, and the limited stock of eligible new-build properties can make finding suitable options genuinely difficult.
We will tell you more in our blog article about foreigner property ownership in Tasmania.
Do banks lend to foreigners in Tasmania in 2026?
As of early 2026, mortgage financing for foreign buyers in Tasmania is available but significantly harder to obtain than for Australian residents, with fewer lenders offering products and those that do imposing stricter conditions.
Foreign buyers in Tasmania can typically expect loan-to-value ratios capped at around 60% to 70% (meaning a 30% to 40% deposit is required), and interest rates may be 0.5% to 1% higher than comparable resident rates, though this varies by lender and applicant profile.
Banks lending to foreigners in Tasmania generally require extensive documentation including certified proof of overseas income, tax returns from the home country, evidence of genuine savings, and sometimes a formal letter from an employer, all of which must often be translated and verified.
You can also read our latest update about mortgage and interest rates in Australia.
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.
How risky is buying in Tasmania compared to other nearby markets?
Is Tasmania more volatile than nearby places in 2026?
As of early 2026, Tasmania's property market is generally more volatile than larger Australian markets like Sydney or Melbourne, though it behaves differently, with sharper upswings during boom periods and quicker cooling when conditions tighten.
Over the past decade, Tasmania experienced some of the most dramatic price swings in Australia, with Hobart prices roughly doubling between 2016 and 2022 before softening, whereas Sydney and Melbourne saw more gradual movements over the same period.
If you want to go into more details, we also have a blog article detailing the updated housing prices in Tasmania.
Is Tasmania resilient during downturns historically?
Tasmania has shown mixed resilience during economic downturns, with property prices sometimes falling more sharply than mainland capitals but rental markets often remaining tight, which provides a cushion for investors.
During the most recent significant correction (2022 to 2023 rate-rise period), Hobart prices dropped around 10% to 12% from their peak before stabilizing, and the recovery has been gradual, taking roughly 18 to 24 months to show consistent positive momentum again.
Historically, the property types and neighborhoods in Tasmania that have held value best during downturns are well-located houses in established suburbs like Sandy Bay, Battery Point, and South Hobart, where limited supply and strong owner-occupier demand provide a floor under prices.
Get to know the market before you buy a property in Tasmania
Better information leads to better decisions. Get all the data you need before investing a large amount of money. Download our guide.
How strong is rental demand behind the scenes in Tasmania in 2026?
Is long-term rental demand growing in Tasmania in 2026?
As of early 2026, long-term rental demand in Tasmania remains exceptionally strong, with vacancy rates in Hobart sitting around 0.3% and median weekly house rents at a record $600, indicating severe competition among tenants.
The tenant demographics driving this demand in Tasmania include young professionals relocating from mainland capitals for lifestyle reasons, university students in Hobart, healthcare and public sector workers, and families priced out of the buying market.
The neighborhoods with the strongest long-term rental demand in Tasmania right now are inner Hobart suburbs like North Hobart, New Town, and Sandy Bay, plus family-friendly areas like Kingston and Howrah that offer good schools and services.
You might want to check our latest analysis about rental yields in Tasmania.
Is short-term rental demand growing in Tasmania in 2026?
Tasmania's Short Stay Accommodation Act 2019 gives local councils enforcement tools and information-sharing powers, meaning short-term rental operators face real regulatory scrutiny and should not assume compliance will be automatic or simple.
As of early 2026, short-term rental demand in Hobart appears stable rather than rapidly growing, with the market maturing after years of expansion and operators now competing in a more established environment.
The current estimated average occupancy rate for short-term rentals in Hobart is around 61%, with an average daily rate of approximately $180, which can support viable returns but requires realistic expectations about seasonal fluctuations.
The guest demographics driving short-term rental demand in Tasmania are primarily domestic tourists visiting for natural attractions and food and wine experiences, cruise ship visitors during summer, and a smaller segment of interstate business travelers and event attendees.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Tasmania.
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.
What are the realistic short-term and long-term projections for Tasmania in 2026?
What's the 12-month outlook for demand in Tasmania in 2026?
As of early 2026, the 12-month demand outlook for residential property in Tasmania is steady to moderately positive, with tight rental conditions continuing to support investor interest and lifestyle migration providing ongoing buyer flow.
The key factors most likely to influence Tasmania's property demand over the next 12 months are interest rate movements from the Reserve Bank, the pace of interstate migration, and whether new housing supply can meaningfully increase through approved developments.
Most market observers expect Tasmania property prices to grow modestly in 2026, perhaps 2% to 5% across Greater Hobart, with regional areas potentially flat or slightly softer depending on local supply and demand conditions.
By the way, we also have an update regarding price forecasts in Australia.
What's the 3 to 5 year outlook for housing in Tasmania in 2026?
As of early 2026, the 3 to 5 year outlook for housing in Tasmania is cautiously positive, with structural undersupply and lifestyle appeal likely to support prices, though growth rates should be more modest than the exceptional gains seen in the late 2010s.
Major development projects expected to shape Tasmania over the next 3 to 5 years include the completion of the New Bridgewater Bridge, progressive development of the Macquarie Point precinct near Hobart's waterfront, and continued rezoning in growth corridors like Mornington and Brighton.
The single biggest uncertainty that could alter Tasmania's 3 to 5 year outlook is whether new housing supply actually reaches the market at a meaningful scale, since planning approvals do not always translate into completed homes and construction capacity constraints remain real.
Are demographics or other trends pushing prices up in Tasmania in 2026?
As of early 2026, demographic trends are having a moderate upward impact on Tasmanian housing prices, with population growth outpacing dwelling construction and creating persistent pressure on available stock.
The specific demographic shifts most affecting Tasmania's prices include continued net migration from mainland Australian capitals (particularly Sydney and Melbourne), an aging population requiring different housing types, and smaller average household sizes meaning more dwellings are needed per capita.
Beyond demographics, non-demographic trends pushing prices in Tasmania include the normalization of remote work allowing mainland workers to relocate while keeping their jobs, Tasmania's growing reputation as a food, wine, and nature destination, and investor interest driven by strong rental yields.
These demographic and trend-driven price pressures in Tasmania are expected to continue for at least the next 3 to 5 years, though their intensity may moderate if housing supply increases meaningfully or if economic conditions reduce migration flows.
What scenario would cause a downturn in Tasmania in 2026?
As of early 2026, the most likely scenario that could trigger a housing downturn in Tasmania would be a combination of persistently high interest rates, a significant increase in property listings, and a softening of rental demand that removes the floor under investor confidence.
Early warning signs that such a downturn is beginning in Tasmania would include days-on-market stretching beyond 50 days consistently, vendor discounting rising above 5%, vacancy rates in Hobart climbing toward 1% or higher, and a noticeable drop in interstate migration inquiries.
Based on historical patterns, a potential downturn in Tasmania could realistically see prices fall 10% to 15% from peak levels, similar to the 2022 to 2023 correction, though the tight rental market would likely prevent a more severe collapse unless fundamentals shift dramatically.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Tasmania, we always rely on the strongest methodology we can ... and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Australian Bureau of Statistics (ABS) Census | ABS is Australia's official statistics agency and the Census is the baseline for housing and population facts. | We used it to anchor what Tasmania's housing stock looks like, including owner and renter mix and household characteristics. We treat it as the safest starting point before layering on market indicators from property indexes. |
| Tasmanian Government Population Strategy | It's a Tasmanian Government publication that directly summarizes ABS Census housing structure for Tasmania. | We used it to quantify what property types dominate, such as separate houses versus apartments. We use it to keep the property types section factual and Tasmania-specific. |
| Tasmanian Treasury Building Approvals | It's an official state government statistical release that explicitly reports Tasmania's approval trends. | We used it to quantify the current direction of new dwelling approvals going into early 2026. We use it to ground whether new builds are widely available in real supply flow, not anecdotes. |
| Cotality Monthly Housing Chart Pack | Cotality (formerly CoreLogic) is a widely cited housing data provider with consistent methodology used by banks and government. | We used it for two momentum measures that buyers care about: days-on-market and vendor discounting. We use these as near-real-time signals of how hot or cool Tasmania is heading into 2026. |
| Domain Rental Report | Domain is a major Australian property portal with a large dataset and transparent, repeatable reporting. | We used it to quantify rental tightness in Hobart, including rents and vacancy, right before January 2026. We use it to support long-term versus short-term rental demand discussion with hard numbers. |
| Australian Taxation Office (ATO) | The ATO administers the foreign investment application process and publishes the current rules plainly. | We used it to confirm the current restriction on foreign purchases of established dwellings and the approval pathway. We use it to turn rules into a simple checklist for foreign buyers. |
| State Revenue Office Tasmania | It's the official Tasmania tax authority page for the extra duty that can materially change your budget. | We used it to flag the real extra cost foreigners face at settlement in Tasmania. We use it to explain the most common surprise cost foreign buyers underestimate. |
| Australian Government Infrastructure Investment Program | It's an official government infrastructure project page with scope, funding, and timing. | We used it to identify where connectivity upgrades are most likely to shift demand patterns. We use it to support the infrastructure boosts demand neighborhood examples. |
| AirDNA | AirDNA is a widely used short-term rental analytics provider with standard STR metrics like occupancy, ADR, and revenue. | We used it to give a concrete estimate of current STR occupancy and revenue levels in Hobart. We use it as a behind-the-scenes read on tourist-driven demand that long-term rent stats do not show. |
| Real Estate Institute of Tasmania (REIT) | REIT is Tasmania's peak real estate body and its quarterly reporting is a standard local market reference. | We used it to triangulate price and transaction momentum signals with a Tasmania-native dataset. We use it as a local reality check alongside national indexes. |
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