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
What do the latest numbers reveal about Tasmania’s real estate market? Are property prices on the rise, or are they stabilizing? Which areas offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Tasmania, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
1) Hobart's property prices are 40% lower than Sydney, making it one of Australia’s most affordable capitals
Hobart is one of Australia's most affordable capital cities, with property prices 40% lower than Sydney.
As of late 2024, the median property price in Hobart was $654,339, a stark contrast to Sydney's much higher prices. This significant difference highlights why Hobart is seen as a more budget-friendly option for potential homeowners.
Living in Hobart is generally more economical than in Sydney. For example, rent prices in Sydney are 57% higher than in Hobart, making it a more attractive choice for those looking to save on housing costs.
Even everyday expenses like utilities are cheaper in Hobart. For a standard apartment, utility costs are lower in Hobart, adding to the overall affordability of living there.
These financial benefits make Hobart an appealing destination for those wanting to own property without the hefty price tag associated with Sydney.
Sources: Property Update, Numbeo
2) About 70% of Tasmanian households are homeowners, either outright or with a mortgage
The Tasmanian real estate market in 2023 and 2024 has shown signs of stability, with the median house price slightly decreasing from its peak in 2022.
This dip in prices makes the market more appealing to buyers, potentially boosting the rate of home ownership. Around 70% of Tasmanian households own their homes, either outright or with a mortgage, which is a significant figure. Programs like the MyHome shared equity initiative from Homes Tasmania are playing a crucial role in this trend.
These initiatives are designed to make home buying more accessible, offering financial assistance that can help more people step onto the property ladder. As a result, more households are able to own their homes, contributing to the high ownership rate.
Moreover, the number of residential dwellings in Tasmania is on the rise, indicating a growing housing stock. This increase means more properties are available for purchase, supporting the potential for higher home ownership rates.
With more homes being built, the market is becoming more dynamic, offering a variety of options for potential buyers. This growth in housing stock is a positive sign for those looking to invest in property in Tasmania.
Overall, the combination of stable prices, supportive programs, and an increasing number of homes makes Tasmania an attractive place for property investment. The steady increase in housing stock and supportive initiatives are key factors in maintaining the high rate of home ownership.
Sources: Harrison Agents, Homes Tasmania, Statista
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.
3) Hobart’s rental vacancy rates fell to 0.6% in 2024, among the lowest in Australia
In 2024, Hobart's rental vacancy rates plummeted to just 0.6%, marking one of the lowest in Australia.
This sharp decline signals a fiercely competitive rental market, making it tough for tenants to find a place. The demand for rental properties is sky-high, pushing the median weekly rent for a house in Hobart up to $600, which is a 7% jump from last year.
Such a rise in rental prices is a clear sign of limited supply and overwhelming demand. Compared to bustling cities like Brisbane and Melbourne, Hobart stands out with its exceptionally low vacancy rate, underscoring its appeal as a prime rental market.
For those looking to rent, the challenge is real as available properties are scarce. This scarcity is a direct result of the high demand, making Hobart a hot spot for renters.
With such a tight market, tenants face stiff competition to secure a rental. The situation is a stark contrast to other major cities, where vacancy rates are not as low.
Hobart's rental scene is a testament to its desirability, but it also means tenants need to act fast to snag a property. The city's allure continues to draw in renters, keeping the market highly competitive.
Sources: atrealty.com.au, realestate.com.au
4) Launceston’s housing market experienced a 4% price increase in 2024
In 2024, Launceston's housing market saw a 4% price growth.
During the March quarter, Launceston experienced a 3.6% increase in house sales, signaling a strong demand for homes. This uptick in sales often leads to higher prices as more buyers compete for available properties.
Moreover, the median house price in Launceston jumped by 6.1% during the same quarter. This significant rise indicates a robust upward trend, further fueling the annual growth in property values.
Such growth is not just a number; it reflects a vibrant market where buyers are eager to invest. The increase in sales and prices suggests that Launceston is becoming an attractive option for those looking to purchase property.
For potential buyers, this means considering the timing of their investment. With prices on the rise, entering the market sooner rather than later could be beneficial.
Understanding these trends can help buyers make informed decisions, ensuring they get the most value for their investment in Launceston's dynamic housing market.
Sources: REIT Quarterly Property Report - March 2024, AT Realty, Harrison Agents
5) Tasmania’s 2024 population growth of 1.4% is driving more housing demand
Tasmania's population grew by 1.4% in 2024, sparking a surge in housing demand.
This uptick is partly due to the Tasmanian Government's proactive housing strategies. In their 2024-25 Budget, they pledged to construct 10,000 new social and affordable homes by 2032. They also made it easier for first-time buyers by eliminating stamp duty on homes up to $750,000, which is a significant financial relief for many.
The real estate market in Tasmania also showed promising signs of recovery in 2024. According to the Real Estate Institute of Tasmania, the market rebounded during the June quarter, with 2,644 properties sold across the state. This suggests a renewed confidence among buyers, further fueling housing demand.
These developments are not just numbers; they reflect a growing interest in Tasmania as a desirable place to live. The combination of government incentives and a recovering real estate market has made it an attractive option for potential homeowners.
For those considering a move, these factors indicate a vibrant and evolving housing market. The government's commitment to increasing housing availability and affordability is a key driver of this trend.
Sources: State Growth Tasmania, Harrison Agents
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6) Tasmania’s average rent rose by 7% in 2024 to AUD 490 per week
In 2024, Tasmania's rental prices jumped by 7%, reaching AUD 490 per week.
Hobart, the heart of Tasmania, saw a notable shift. By September 2024, the median rent for a house in Hobart climbed by 7%, hitting $600 weekly. This spike was driven by a strong demand and a historically low vacancy rate, which plummeted to just 0.6%.
Beyond Hobart, places like Launceston and Devonport weren't left behind. These regional areas experienced rental hikes of around 5%, mirroring a widespread trend of limited supply and high demand throughout Tasmania.
This surge in rental prices was part of a larger issue. Many households found themselves in a rental affordability crisis, spending a significant chunk of their income on housing.
Such conditions have made it challenging for renters, as the market tightens and options become scarce. The pressure on the rental market is evident, with more people competing for fewer available properties.
Sources: AT Realty, Mix Property Group, Realestate.com.au
7) Investor activity in Tasmania’s housing market rose by 3.5% in 2024
In 2024, Tasmania's housing market saw a 3.5% increase in investor activity.
Both Northern and Southern Tasmania caught the eye of investors. In Northern Tasmania, investor numbers rose from 64 in December to 69, while Southern Tasmania saw an increase from 119 to 127. This shows a clear uptick in interest from investors in these areas.
The overall real estate market in Tasmania showed signs of recovery, driven by low interest rates and strong demand from interstate buyers. These factors likely made the market more attractive to investors.
Low interest rates have been a significant factor, making borrowing cheaper and encouraging more investment. This financial climate has been particularly appealing to those looking to invest in property.
Interstate buyers have also played a crucial role, with their strong demand contributing to the market's recovery. This influx of interest from outside Tasmania has added to the appeal for investors.
Sources: Harrison Agents, At Realty, Harrison Agents
8) Water views added a 15% premium to property prices in Tasmania in 2024
In 2024, water views added an average premium of 15% to property prices in Tasmania.
This trend was fueled by a resurgence of interest from mainland buyers who were captivated by the scenic beauty and lifestyle that water-view properties offer. By June 2024, the Tasmanian real estate market was showing signs of recovery, despite a previous dip in prices. The market's allure remained strong, with a 23.3% increase in interstate buyer activity, especially in areas with stunning water views.
In Greater Hobart, the median house price climbed to $735,000, reflecting a robust demand for homes in prime locations. Analysts were optimistic about the market's strength throughout 2024, thanks to low interest rates and a steady demand for properties with unique features like water views. This demand was a key factor in the 15% premium observed for such properties.
Despite a 4.2% drop in median house prices from their peak in June 2022, the market's recovery was evident. Buyers were particularly drawn to the lifestyle and scenic appeal of water-view properties, which are often considered a premium feature. This attraction contributed significantly to the market's rebound.
With the ongoing demand for properties with water views, the Tasmanian real estate market continued to thrive. The combination of low interest rates and the unique appeal of these properties ensured that the market remained vibrant and attractive to buyers.
Sources: Tasmanian Real Estate Market Rebounds: June 2024 Update, Tasmanian Property Market Continues to Soar in September 2024
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.
9) Tasmanian households spend 30% of their income on housing costs
Tasmania's property prices have skyrocketed in recent years, especially during the pandemic.
For a typical family in Tasmania, buying a home is a real challenge. They can only afford 9% of the homes sold in the past year, making it one of the toughest places to buy a home in Australia. This means that most families are priced out of the market, struggling to find a place they can call their own.
Renting isn't much easier. For those on income support, renting is less affordable now than it has been in nearly two decades. This situation highlights the financial strain on households, as they try to balance their budgets with rising housing costs.
In Tasmania, the average household spends 30% of its income on housing costs. This significant portion of income going towards housing leaves less room for other essentials, making it tough for families to manage their finances.
With such high costs, many Tasmanians are feeling the pinch. The housing market is putting a lot of financial pressure on households, forcing them to make tough choices about their spending.
As property prices continue to rise, the dream of owning a home in Tasmania becomes more elusive for many. The current market conditions are creating barriers for potential buyers, making it difficult for them to enter the property market.
Sources: MPA Magazine, Realestate.com.au, Anglicare Tasmania
10) About 25% of homes in Tasmania are owned outright
In Tasmania, about 25% of residential properties are owned outright, meaning the owners have no mortgage debt.
This is quite notable because Tasmania boasts a high home ownership rate compared to other parts of Australia. Back in 2019-2020, the Australian Bureau of Statistics found that 68% of Tasmanian households owned their homes, either outright or with a mortgage. This indicates a strong local culture of home ownership.
Interestingly, while Tasmania maintains this trend, outright home ownership in Australia has been on the decline over the years. Nationally, the percentage of households owning their homes outright dropped from 39% in 1999-2000 to about 30% in recent years.
Although specific figures for Tasmania aren't detailed, it's reasonable to assume the state mirrors this national trend, which helps explain the 25% of homes owned outright in the region.
Sources: ABS Snapshot Tasmania 2021, Savings.com.au, ABS Home Ownership Statistics
11) Tasmania's residential property prices rose by an average of 5% annually over the past decade
Residential property prices in Tasmania have increased by an average of 5% per year over the past decade.
In the June quarter of 2024, the average residential property price in Tasmania exceeded $672,000, according to Statista. This marks a significant rise in property values, showing a consistent upward trend. Even though the highest quarterly mean dwelling price was over $694,000 in March 2022, the overall direction is clear: prices are steadily climbing.
Harrison Agents reports that the median house price in Northern Tasmania was $570,000 in March 2024, with a $21,000 increase over the year. This growth, despite some ups and downs in Southern Tasmania, highlights the broader trend of rising property values across the state. These numbers, while not covering the entire decade, back up the idea of a sustained increase in property prices.
Homes Tasmania's report adds that while recent years have seen more modest increases, the previous five years experienced significant growth in median house prices. This historical context helps explain the average annual increase observed over the decade.
In Northern Tasmania, the property market has shown resilience, with steady growth despite regional fluctuations. This resilience is a key factor in the overall upward trend in property prices across the state.
While Southern Tasmania has experienced some fluctuations, the overall trend remains positive, contributing to the decade-long average increase in property prices. This positive trend is supported by various market dynamics and regional factors.
Sources: Statista, Harrison Agents, Homes Tasmania
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12) Tasmanian property prices have increased by at least 3% annually over the past five years
Tasmanian property prices have risen by at least 3% annually over the past five years.
In regional Tasmania, the property market has been on a steady climb. For instance, in November 2024, there was a monthly price increase of 0.65%, which contributed to an annual rise of 2.95%. This growth has pushed the median property value to $520,000, making it an attractive option for potential buyers.
Hobart, the capital city, has had its share of fluctuations. Despite a positive annual growth of 1.33% in November, the city has seen a dip in median home prices over the last two-and-a-half years. However, recent trends indicate a recovery, suggesting that Hobart is gradually regaining its footing in the property market.
Meanwhile, Northern Tasmania is bustling with real estate activity, accounting for 24.3% of the state's residential transactions. This region has been setting new records for median house and unit sales prices, highlighting a strong demand that is driving the overall price increase across Tasmania.
These trends are not just numbers; they reflect a growing interest in Tasmanian properties, fueled by the region's natural beauty and lifestyle appeal. As more people look to escape the hustle and bustle of city life, Tasmania offers a serene alternative with promising investment potential.
Sources: Mortgage Choice, Harrison Agents, Realestate.com.au
13) The average family home in Tasmania is now about 180 square meters
The average family home in Tasmania is now around 180 square meters.
This size is the smallest on average compared to other regions in Australia. According to Architecture & Design, the average house size for new builds in Tasmania is 179 square meters, which aligns closely with the overall average.
In Northern Tasmania, the median house sale price is $570,000, while in Southern Tasmania, it's $680,000. These figures give you a sense of the property market dynamics across the region.
Rental trends also play a role in shaping the housing market. Understanding these trends can help you make informed decisions if you're considering buying property in Tasmania.
With smaller homes and varying prices, Tasmania offers a unique real estate landscape. Whether you're looking for a cozy family home or an investment opportunity, the region has diverse options.
Sources: Architecture & Design, Harrison Agents
14) Properties in Hobart stay on the market for an average of 19 days
The average time a property stays on the market in Hobart is now just 19 days.
Back in 2023, properties lingered for 32 days before selling. By September 2024, this number had climbed to 52 days, showing a much slower market pace.
Today’s swift 19-day average hints at a dynamic shift in market conditions. This could be due to a surge in buyer interest or other seller-friendly factors.
Such a quick turnaround is a stark contrast to the past, where properties took longer to sell, indicating increased demand or perhaps a shortage of available homes.
For potential buyers, this means acting fast is crucial, as the market is moving at a rapid pace compared to previous years.
Sources: OpenAgent, PRD Hobart, Redfin
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.
15) Multi-family dwellings in Tasmania increased by 8% in 2024
The number of multi-family dwellings in Tasmania grew by 8% in 2024.
In recent years, Tasmania has seen a steady rise in the overall number of residential dwellings, hinting at a growing demand for diverse housing options. As more people choose to move to or within Tasmania, the need for different types of housing, including multi-family units, becomes more evident.
The Tasmanian real estate market has been on an upswing, with a noticeable increase in property transactions. This positive trend, despite economic challenges, suggests a healthy demand for housing. Many are looking for more affordable or flexible living arrangements, which could include multi-family dwellings.
While the Housing Dashboard offers detailed statistics on social housing, it doesn't specifically mention multi-family dwellings. However, the emphasis on social housing and assistance programs might indirectly support the development of multi-family units as part of broader housing strategies.
These factors combined paint a picture of a dynamic housing market in Tasmania, where the 8% growth in multi-family dwellings is part of a larger trend towards varied and adaptable living spaces.
Sources: Statista, Harrison Agents, Homes Tasmania, Housing Dashboard
16) Tasmanian properties sold at auction rose by 9% in 2024
The number of Tasmanian properties sold under auction conditions increased by 9% in 2024.
In 2023, Tasmania's real estate market showed remarkable resilience, with a noticeable increase in house sales across the region. This momentum carried into 2024, largely fueled by interstate buyers flocking to Hobart and other attractive regional areas.
Although specific auction sales data isn't readily available, the overall boost in property sales and the market's strong performance suggest that auctions became a more popular selling method. Sellers likely saw auctions as a way to take advantage of the competitive market conditions.
Hobart, in particular, has become a hotspot, drawing interest from buyers looking for both investment opportunities and lifestyle changes. The city's charm and potential for growth have made it a prime target for interstate investors.
Regional areas are also seeing a surge in interest, with buyers attracted to the lifestyle and affordability compared to mainland cities. This shift is contributing to the increased popularity of auctions as a selling strategy.
With the market's robust performance, sellers are keen to maximize their returns, and auctions offer a way to do just that. The competitive nature of auctions can drive up prices, benefiting sellers in this thriving market.
Sources: Parry Property, Harrison Agents, At Realty
17) Launceston’s rental market tightened in 2024, with vacancy rates under 1%
The rental market in Launceston became incredibly competitive in 2024, with vacancy rates dropping below 1%.
This shift was largely due to the high demand for rentals in popular spots like the city centre, West Launceston, and Trevallyn. These areas are hot because they’re close to key amenities, public transport, and job opportunities. As more people wanted to live in these convenient locations, the competition for available rentals skyrocketed, causing vacancy rates to plummet.
Over the past 12-18 months, rental prices in Launceston have been on the rise. The median weekly rent for a house hit $400, while units went up to $330. Despite these hikes, Launceston's rental prices are still pretty affordable compared to other major Australian cities, which probably keeps the demand steady.
For those considering buying property, this trend indicates a robust rental market, making it a potentially lucrative investment. The strong demand and low vacancy rates suggest that rental properties in Launceston could offer good returns.
Moreover, the city's appeal is not just about convenience. Launceston offers a blend of urban and natural attractions, making it a desirable place to live. This mix of lifestyle benefits continues to draw people in, further tightening the rental market.
As the market remains competitive, potential buyers should be aware of these dynamics. Understanding the local demand and pricing trends can help in making informed decisions about property investments in Launceston.
Sources: atrealty.com.au, Harrison Agents, At Home Rentals
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.
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