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
Whether you're eyeing a weatherboard cottage in Hobart or a unit in Launceston, understanding rental yields in Tasmania is the first step to making a smart investment decision.
We constantly update this blog post so you always have access to the freshest data and insights on Tasmanian rental returns.
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.
Insights
- Tasmania's average gross rental yield sits around 4.2% in early 2026, but savvy investors can find pockets delivering 5% or more in suburbs like Glenorchy and Bridgewater where entry prices are lower.
- Hobart's vacancy rate of just 0.4% is one of the tightest in Australia, meaning landlords face minimal downtime risk compared to mainland capitals.
- Units and apartments in Tasmania typically yield about 1.2 percentage points higher than detached houses, making them attractive for yield-focused investors despite body corporate costs.
- The gap between highest and lowest-yield suburbs in Tasmania can reach 2 percentage points, with premium areas like Sandy Bay and Battery Point compressing yields to around 3.0% to 3.6%.
- Net yields in Tasmania average around 2.8% after accounting for land tax, council rates, property management, and maintenance, which together can consume 1.4 percentage points of gross returns.
- The UTAS Stadium redevelopment in Launceston and the new Spirit of Tasmania terminal in Devonport are expected to boost rental demand in nearby suburbs through 2026 and beyond.
- Property management fees in Tasmania typically run between 6% and 10% of rent collected, with most agencies charging around 7.5% plus a one to two week leasing fee.
- Compact one to two bedroom units tend to deliver the best yield per square metre in Tasmania because rent does not scale proportionally with floor area.
What are the rental yields in Tasmania as of 2026?
What's the average gross rental yield in Tasmania as of 2026?
As of early 2026, the average gross rental yield across all residential property types in Tasmania sits at approximately 4.2%, which reflects a healthy balance between strong rental demand and moderate purchase prices across the state.
Most typical residential properties in Tasmania fall within a gross yield range of 3.6% to 5.2%, with the lower end representing premium inner Hobart suburbs and the upper end found in more affordable regional pockets and outer urban corridors.
Tasmania's average gross yield of around 4.2% compares favourably to many mainland Australian capitals, where tighter yields of 3% to 3.5% are common in cities like Sydney and Melbourne due to higher property prices.
The single most important factor driving gross rental yields in Tasmania right now is the extremely tight vacancy rate, particularly in Hobart where it hovers around 0.4%, which supports strong rents even as purchase prices have risen over recent years.
What's the average net rental yield in Tasmania as of 2026?
As of early 2026, the average net rental yield across all residential property types in Tasmania is approximately 2.8%, which accounts for the main recurring expenses landlords face in the state.
The typical difference between gross and net rental yields in Tasmania is around 1.4 percentage points, meaning that for every dollar of gross rent, a meaningful portion goes toward unavoidable holding costs.
Land tax for investment properties is often the single largest recurring expense that reduces gross yield to net yield in Tasmania, particularly for investors who own multiple properties or hold higher-value land, though council rates and property management fees also take a significant bite.
Most standard investment properties in Tasmania deliver net yields in the range of 2.2% to 3.6%, with the variation driven primarily by differences in land tax liability, council rate structures across municipalities, and whether owners self-manage or use full-service property managers.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market 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 yield is considered "good" in Tasmania in 2026?
In Tasmania's early 2026 market, a gross rental yield of around 4.5% or higher is generally considered good by local investors, as it provides enough cushion above holding costs to deliver a respectable net return.
The threshold that typically separates average-performing properties from high-performing ones in Tasmania is around 5.0% gross yield, which is achievable in more affordable suburbs like Glenorchy, Bridgewater, or parts of Launceston's northern rental belt without sacrificing tenant quality.
How much do yields vary by neighborhood in Tasmania as of 2026?
As of early 2026, the spread in gross rental yields between the highest-yield and lowest-yield neighbourhoods in Tasmania is often around 2 percentage points, which represents a significant difference in cash flow for investors comparing different suburbs.
The highest rental yields in Tasmania are typically found in more affordable, working-class suburbs where purchase prices are lower but rental demand remains solid, such as Glenorchy, Claremont, Bridgewater, and Rokeby in the Hobart corridor, or Mowbray, Invermay, and Ravenswood in Launceston.
The lowest rental yields in Tasmania tend to appear in premium, lifestyle-driven suburbs where owner-occupiers compete aggressively for properties and push prices well above what rents can support, including Sandy Bay, Battery Point, and West Hobart near the Hobart CBD.
The main reason yields vary so much across neighbourhoods in Tasmania is that purchase prices are driven by lifestyle amenity and land scarcity in prestige areas, while rents remain more tethered to what tenants can actually afford to pay across the income spectrum.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Tasmania.
How much do yields vary by property type in Tasmania as of 2026?
As of early 2026, gross rental yields across different property types in Tasmania range from around 3.4% for detached houses in sought-after areas up to approximately 4.6% or higher for units and apartments in the same neighbourhoods.
Units and apartments currently deliver the highest average gross rental yield in Tasmania because their lower purchase price relative to houses means the rent-to-price ratio works more favourably for investors, even after accounting for body corporate fees.
Detached houses typically deliver the lowest average gross rental yield in Tasmania, particularly in premium suburbs where buyers pay a significant premium for land, lifestyle, and future capital growth potential.
The key reason yields differ between property types in Tasmania is that rents do not scale proportionally with purchase price, so lower-priced dwellings like units capture a larger share of their value as annual rental income.
By the way, you might want to read the following:
What's the typical vacancy rate in Tasmania as of 2026?
As of early 2026, the typical residential vacancy rate across Tasmania sits in the range of 0.8% to 1.3%, with Hobart recording an extremely tight 0.4% in the most recent data, signalling a very landlord-favourable market.
Vacancy rates vary across different neighbourhoods in Tasmania from near-zero in high-demand inner Hobart suburbs to slightly higher levels in regional towns, though even these rarely exceed 2% in the current market.
The main factor driving vacancy rates in Tasmania right now is a persistent shortage of rental supply combined with steady population inflows and limited new construction, which keeps competition for available rentals intense across most areas.
Tasmania's vacancy rate is well below the national benchmark of around 3% that industry bodies consider a balanced market, making it one of the tightest rental markets in Australia and reducing downtime risk for landlords considerably.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Tasmania.
What's the rent-to-price ratio in Tasmania as of 2026?
As of early 2026, the average rent-to-price ratio in Tasmania is approximately 0.35% monthly, which translates to around 4.2% annually and directly reflects the gross rental yield investors can expect across a mixed property portfolio.
A rent-to-price ratio of 0.35% monthly or higher is generally considered favourable for buy-to-let investors in Tasmania, as this level corresponds to a gross yield above 4% and typically leaves room for positive cash flow after expenses.
Tasmania's rent-to-price ratio compares well to larger Australian cities like Sydney and Melbourne where ratios often sit below 0.30% monthly, making Tasmania relatively more attractive for investors prioritising rental income over pure capital growth.
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.
Which neighborhoods and micro-areas in Tasmania give the best yields as of 2026?
Where are the highest-yield areas in Tasmania as of 2026?
As of early 2026, the top three highest-yield neighbourhoods in Tasmania include Glenorchy and Bridgewater in the Hobart corridor, along with Invermay in Launceston, where lower entry prices and strong renter demand combine to push gross yields above the state average.
These top-performing areas in Tasmania typically deliver gross rental yields in the range of 4.6% to 6.0% or even higher, with suburbs like Ravenswood, Mowbray, and Rokeby also regularly appearing among the strongest performers for yield-focused investors.
The main characteristic these high-yield areas share is affordability for both buyers and tenants, meaning purchase prices remain accessible while rents hold firm because these suburbs serve as essential housing for workers, families, and renters priced out of more expensive locations.
You'll find a much more detailed analysis of the areas with high profitability potential in our property pack covering the real estate market in Tasmania.
Where are the lowest-yield areas in Tasmania as of 2026?
As of early 2026, the top three lowest-yield neighbourhoods in Tasmania are Battery Point, Sandy Bay, and West Hobart, where strong lifestyle appeal and owner-occupier competition push property prices well beyond what rental income can support.
These low-yield areas in Tasmania typically deliver gross rental yields in the range of 3.0% to 3.6%, which can make it challenging to achieve positive cash flow without significant capital growth expectations.
The main reason yields are compressed in these premium Hobart suburbs is that buyers are paying for amenity, heritage character, and proximity to the waterfront or CBD rather than purely for rental income potential, which drives prices up faster than rents.
Buying a property in a low-yield area is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Tasmania.
Which areas have the lowest vacancy in Tasmania as of 2026?
As of early 2026, the top three neighbourhoods with the lowest residential vacancy rates in Tasmania are the Hobart CBD and near-CBD areas including North Hobart and West Hobart, New Town near the Royal Hobart Hospital, and Sandy Bay close to the University of Tasmania campus.
These low-vacancy areas in Tasmania typically experience vacancy rates well below 1%, with some micro-pockets effectively at zero as properties are leased within days of listing.
The main demand driver keeping vacancy low in these Tasmanian areas is proximity to major employment, education, and health anchors, which creates a steady stream of professionals, students, and essential workers competing for limited rental stock.
The trade-off investors typically face when targeting these low-vacancy areas is accepting lower gross yields, since the same factors that guarantee strong tenant demand also attract owner-occupiers who bid up purchase prices.
Which areas have the most renter demand in Tasmania right now?
The top three neighbourhoods currently experiencing the strongest renter demand in Tasmania are Sandy Bay with its university and lifestyle appeal, New Town with excellent hospital and services access, and Moonah offering value combined with easy commuting to the Hobart CBD.
The dominant renter profile driving demand in these areas includes young professionals, healthcare and education workers, university students, and small families seeking affordable housing within reasonable commuting distance of major employers.
Rental listings in these high-demand Tasmanian neighbourhoods typically fill within one to two weeks of advertising, and in the tightest pockets properties may receive multiple applications within days of going live.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Tasmania.
Which upcoming projects could boost rents and rental yields in Tasmania as of 2026?
As of early 2026, the top three upcoming infrastructure and development projects expected to boost rents in Tasmania are the new Spirit of Tasmania passenger terminal in Devonport scheduled for October 2026, the UTAS Stadium redevelopment in Launceston, and the ongoing Bridgewater Bridge project improving connectivity north of Hobart.
The neighbourhoods most likely to benefit from these projects include Devonport, East Devonport, and Miandetta near the ferry terminal, Invermay, Mowbray, and Newstead around the Launceston stadium, and Bridgewater, Brighton, and Old Beach along the improved northern Hobart corridor.
Investors in these areas might realistically expect rent increases of 3% to 8% above baseline growth once projects are completed, driven by contractor accommodation demand during construction and longer-term lifestyle or connectivity improvements that attract more renters.
You'll find our latest property market analysis about Tasmania here.
Get fresh and reliable information about the market in Tasmania
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What property type should I buy for renting in Tasmania as of 2026?
Between studios and larger units in Tasmania, which performs best in 2026?
As of early 2026, smaller one to two bedroom units and compact apartments tend to perform best in terms of rental yield and occupancy in Tasmania, outperforming both studios (which have limited supply) and larger family-sized units on a yield basis.
Studios in Tasmania typically yield around 4.5% to 5.5% gross (AUD $250 to $350 weekly rent, or roughly USD $160 to $225 / EUR $150 to $210), while larger two to three bedroom units yield around 3.8% to 4.5% gross with higher absolute rents but proportionally lower returns on the purchase price.
The main factor explaining why smaller units outperform in Tasmania is that true studio supply is limited compared to mainland cities, so the practical sweet spot is compact one to two bedroom dwellings that attract a broad renter pool including singles, couples, and downsizers.
One scenario where larger units might be the better investment choice in Tasmania is when targeting family renters in suburbs like Kingston or Howrah, where two to three bedroom townhouses can command longer tenancies and more stable occupancy from families seeking school catchments.
What property types are in most demand in Tasmania as of 2026?
As of early 2026, the most in-demand property type for tenants in Tasmania is the two to three bedroom house or townhouse, which appeals to families, sharers, and couples seeking more space without the price tag of a detached home in a premium suburb.
The top three property types ranked by current tenant demand in Tasmania are two to three bedroom houses and townhouses in first place, one to two bedroom units and villas in second, and compact apartments close to employment hubs in third.
The primary demographic trend driving this demand pattern in Tasmania is a combination of young families priced out of home ownership, interstate migrants seeking lifestyle and affordability, and an ageing population looking to downsize into manageable, low-maintenance dwellings.
One property type currently underperforming in demand in Tasmania is the large four-plus bedroom family home, as the tenant pool able to afford the higher rents is smaller and these properties often sit vacant longer between tenancies.
What unit size has the best yield per m² in Tasmania as of 2026?
As of early 2026, the unit size range that delivers the best gross rental yield per square metre in Tasmania is typically 45 to 75 square metres, which corresponds to compact one to two bedroom apartments and villas that balance renter appeal with efficient use of space.
For this optimal unit size in Tasmania, the typical gross rental yield per square metre works out to around AUD $8 to $12 per square metre per week (approximately USD $5 to $8 or EUR $4.50 to $7), compared to larger properties where the yield per square metre drops as floor area increases.
The main reason smaller or larger units tend to have lower yield per square metre in Tasmania is that rent does not scale linearly with size, so very small studios may lack market depth while very large properties attract tenants who expect a discount per square metre for the extra space.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Tasmania.
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 costs cut my net yield in Tasmania as of 2026?
What are typical property taxes and recurring local fees in Tasmania as of 2026?
As of early 2026, the estimated annual property tax for a typical investment apartment in Tasmania includes land tax starting from around AUD $50 for lower-value land and scaling progressively, plus council rates that commonly range from AUD $1,500 to $2,500 per year (approximately USD $950 to $1,600 or EUR $900 to $1,500) depending on the municipality and property value.
Other recurring local fees landlords must budget for in Tasmania include waste management levies, stormwater charges, and fire service contributions, which together can add another AUD $300 to $600 annually (roughly USD $190 to $385 or EUR $180 to $360) on top of base council rates.
In total, these property taxes and local fees typically represent around 8% to 15% of gross rental income in Tasmania, making them a significant drag on net yield that varies considerably based on property value and council area.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Tasmania.
What insurance, maintenance, and annual repair costs should landlords budget in Tasmania right now?
The estimated annual landlord insurance cost for a typical rental property in Tasmania ranges from approximately AUD $800 to $1,600 (around USD $510 to $1,020 or EUR $480 to $960), depending on the level of cover, excess chosen, and specific property risks like flood or coastal exposure.
Landlords in Tasmania should budget around 0.5% to 1.0% of the property value annually for maintenance and repairs, which translates to roughly AUD $2,500 to $6,000 per year (approximately USD $1,600 to $3,850 or EUR $1,500 to $3,600) for a typical investment property valued between $500,000 and $600,000.
The type of repair expense that most commonly catches landlords off guard in Tasmania is hot water system replacement or roof repairs on older weatherboard homes, as the state has significant older housing stock that can require expensive fixes with little warning.
The total combined annual cost landlords should realistically budget for insurance, maintenance, and repairs in Tasmania is approximately AUD $3,500 to $7,500 (roughly USD $2,240 to $4,800 or EUR $2,100 to $4,500), though this can spike higher in years when major systems need replacing.
Which utilities do landlords typically pay, and what do they cost in Tasmania right now?
In Tasmania, landlords typically cover fixed water and sewerage service charges if the property is not set up for separate tenant billing, while tenants almost always pay their own electricity usage and can be charged for water consumption if the billing arrangement and lease allow it.
For landlord-paid utilities in a typical Tasmanian rental unit, the estimated monthly cost for fixed water and sewer charges ranges from AUD $40 to $80 (approximately USD $25 to $50 or EUR $24 to $48), though this varies based on the TasWater billing structure and whether the property has been set up for tenant billing.
What does full-service property management cost, including leasing, in Tasmania as of 2026?
As of early 2026, the typical monthly property management fee in Tasmania ranges from 6% to 10% of rent collected, with most agencies charging around 7% to 8.5% (approximately AUD $105 to $150 per month or USD $67 to $96 / EUR $63 to $90 on a $1,500 monthly rent) for full-service management including inspections, maintenance coordination, and rent collection.
On top of ongoing management, the typical leasing or tenant-placement fee in Tasmania is around one to two weeks' rent, which works out to approximately AUD $350 to $750 (roughly USD $225 to $480 or EUR $210 to $450) each time a new tenant is placed, plus potential advertising and administrative fees depending on the agency.
What's a realistic vacancy buffer in Tasmania as of 2026?
As of early 2026, landlords in Tasmania should set aside approximately 3% to 4% of annual rental income as a vacancy buffer, which accounts for lease turnovers and minor maintenance periods even in the state's exceptionally tight rental market.
The typical number of vacant weeks per year landlords experience in Tasmania is around two weeks in the base case, though investors in thinner regional markets or with niche properties should budget for three to four weeks to be conservative.
Buying real estate in Tasmania can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
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 |
|---|---|---|
| SQM Research Weekly Rents | SQM is a widely cited Australian property data house with published methodology and long time series. | We used its weekly asking rents by Tasmanian city and region as our primary rent input. We then cross-checked these figures against other mainstream market trackers for accuracy. |
| SQM Research Asking Property Prices | SQM provides transparent, repeatable data with consistent national coverage across property types. | We used its weekly asking sale prices for houses, units, and combined stock to approximate purchase prices. We combined these with rents to compute gross yields and rent-to-price ratios. |
| SQM Research Vacancy Rates (Nov 2025) | This is SQM's official publication explaining definitions and current vacancy conditions across Australia. | We used the published Hobart vacancy rate of 0.4% as our early 2026 anchor point. We then triangulated a Tasmania-wide typical range using broader context and local market logic. |
| Realestate.com.au Hobart Profile | REA Group is a major Australian property portal with extensive listing coverage and market data. | We used the displayed house versus unit yields to sanity-check our mixed-property yield estimate. We treated it as a cross-check rather than a sole source because it's portal-derived. |
| NAB Hobart Property Market Update (Oct 2025) | NAB is a major Australian bank whose housing research is widely followed and includes methodology notes. | We used it to validate the direction of tight supply and rent growth behind yields. We treated it as context rather than as our single numeric yield source. |
| ABS Latest Insights into the Rental Market | The Australian Bureau of Statistics is Australia's official statistics agency with rigorous methodology. | We used it to frame how rents are measured at scale and why rent changes differ by distance to CBD. We applied it as the official-methods underpinning for the rent discussion. |
| REIA Real Estate Market Facts | REIA is the national peak body for state and territory real estate institutes across Australia. | We used its commonly cited 3% vacancy equals balanced market benchmark to explain what healthy vacancy looks like. We applied it only as a benchmark, not as Tasmania's actual vacancy. |
| Tasmania State Revenue Office Land Tax Rates | This is the official state revenue authority page for statutory land tax rates in Tasmania. | We used it to estimate the annual land tax drag on net yields for investors where applicable. We also used it to explain why land tax varies by property and ownership structure. |
| City of Hobart Rates and Charges | This is the council's official schedule and calculation basis for property rates in Hobart. | We used it to anchor the idea that council rates are a meaningful recurring cost in Tasmania. We applied it as a template since Tasmanian councils vary but share similar cost structures. |
| TasWater Tenant Billing | TasWater is the state water utility and its guidance reflects how billing works in practice. | We used it to explain what is typically billed to tenants versus owners in Tasmania. We applied it to support the utilities section covering water and sewer costs. |
| Tasmanian Residential Tenancy Act 1997 | This is the official consolidated legislation source for residential tenancy law in Tasmania. | We used it to ground who pays what in the rental relationship at a high level. We applied it as the legal backstop when describing landlord and tenant cost splitting. |
| ATO Repair and Maintenance Expenses | The ATO is Australia's tax authority and its rules drive real landlord behaviour around deductions. | We used it to explain budgeting for repairs and the difference between deductible repairs versus capital works. We applied it to justify why maintenance buffers are necessary. |
| Premier of Tasmania UTAS Stadium Announcement | This is a primary government announcement about a major infrastructure project in Launceston. | We used it to identify a concrete pipeline project that can lift local renter demand through construction and events. We mapped it to likely beneficiary suburbs like Invermay and Mowbray. |
| New Bridgewater Bridge Project | This is the official project site with dates and scope for the bridge construction works. | We used it to explain the connectivity change and ongoing works through mid-2026. We applied it to justify why some northern Hobart corridor suburbs may see demand shifts. |
| Premier of Tasmania Spirit Terminal Announcement | This is a primary government update with timing for the new Spirit of Tasmania terminal in Devonport. | We used it to name a demand catalyst around Devonport tied to transport and tourism logistics. We applied it to support upcoming projects for northwest Tasmania. |
| TasWater Hobart Sewer Pipeline Project | TasWater is the state utility and this provides official updates on major civil works in Hobart. | We used it to identify infrastructure works creating pockets of temporary rental demand. We mapped it to nearby suburbs like New Town and Glebe that may capture contractor demand. |
| AgentsCompare Property Management Fees Tasmania | This is an industry comparison platform that aggregates property management fee data across agencies. | We used it to verify typical property management fee ranges in Tasmania. We cross-referenced with local agency listings and our own research on fee structures. |
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