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
Tasmania's property market in 2026 is shaped by strict foreign-buyer rules and four distinct investment zones: prime inner Hobart, Hobart's middle ring, Launceston, and the North-West coast.
Foreign buyers are currently banned from purchasing established dwellings in Australia until March 2027, so your options focus on new builds and vacant land with development conditions.
We constantly update this blog post to reflect the latest data, regulations, and market shifts in Tasmania.
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.
What's the Current Real Estate Market Situation by Area in Tasmania?
Which areas in Tasmania have the highest property prices per square meter in 2026?
As of early 2026, Battery Point, Sandy Bay, and the Hobart 7000 CBD fringe are the three most expensive areas in Tasmania, with estimated prices reaching AUD 7,000 to 9,500 per square meter for houses.
In these prime inner Hobart neighborhoods, you can expect to pay between AUD 7,000 and AUD 9,500 per square meter for a house, while newer apartments can push even higher on a per-square-meter basis because they tend to be smaller.
Each of these Tasmania neighborhoods commands premium prices for different reasons:
- Battery Point: Heritage streetscapes and Salamanca Market proximity create extreme scarcity for buyers.
- Sandy Bay: University of Tasmania campus, waterfront access, and established family appeal drive demand.
- Hobart 7000 CBD fringe: Walkability to restaurants, jobs, and harbour views limits available stock.
Which areas in Tasmania have the most affordable property prices in 2026?
As of early 2026, Risdon Vale near Hobart, Mowbray in Launceston, and parts of the Glenorchy corridor offer the most affordable property prices in Tasmania, with median house prices around AUD 400,000 to 480,000.
In these more affordable Tasmania suburbs, you can typically find houses priced between AUD 2,200 and AUD 2,600 per square meter, which is roughly a third of what you would pay in Battery Point or Sandy Bay.
However, buyers should expect trade-offs: Risdon Vale has higher tenant-management demands and variable property quality, Mowbray requires active oversight due to a more transient rental pool, and outer Glenorchy areas can have thinner resale markets when you want to exit.
You can also read our latest analysis regarding housing prices 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.
Which Areas in Tasmania Offer the Best Rental Yields?
Which neighborhoods in Tasmania have the highest gross rental yields in 2026?
As of early 2026, Risdon Vale leads Tasmania with gross rental yields around 5.4%, followed by Mowbray in Launceston at roughly 5.1% to 5.2%, and Moonah in Hobart's northern corridor at approximately 4.5% to 4.9%.
Across Tasmania as a whole, typical gross rental yields range from about 3% in prime inner Hobart suburbs to 5% or more in the more affordable outer suburbs and regional centers like Launceston.
These higher-yielding Tasmania neighborhoods deliver better returns for specific reasons:
- Risdon Vale: Lower entry prices around AUD 460,000 paired with steady rental demand from workers.
- Mowbray: Student and worker tenant pools near Launceston keep occupancy high and rents stable.
- Moonah: Gentrification spillover from inner Hobart brings new renters while prices stay moderate.
Finally, please note that we cover the rental yields in Tasmania here.
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Which Areas in Tasmania Are Best for Short-Term Vacation Rentals?
Which neighborhoods in Tasmania perform best on Airbnb in 2026?
As of early 2026, Battery Point near Salamanca, the Hobart CBD fringe, and select pockets of Sandy Bay near the University of Tasmania waterfront are the top-performing Airbnb neighborhoods in Tasmania based on occupancy rates and nightly rates.
In these prime Tasmania short-term rental areas, well-positioned properties can generate between AUD 3,500 and AUD 6,000 per month during peak summer season, though off-peak months see lower returns.
Each of these Tasmania Airbnb hotspots outperforms for distinct reasons:
- Battery Point: Heritage charm and walking distance to Salamanca Market attract weekend visitors.
- Hobart CBD fringe: Small, well-finished apartments appeal to business travelers and event attendees.
- Sandy Bay waterfront pockets: Proximity to UTAS and coastal lifestyle draws longer-staying guests.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Tasmania.
Which tourist areas in Tasmania are becoming oversaturated with short-term rentals?
Greater Hobart as a whole, the Salamanca and waterfront precinct, and small high-tourism towns with limited permanent housing stock are the Tasmania areas showing signs of short-term rental oversaturation.
In Greater Hobart alone, the state government's Short Stay Accommodation tracking framework now monitors thousands of active listings, with the densest concentrations around the inner city and tourist-adjacent suburbs.
The clearest sign of oversaturation in these Tasmania areas is that the government has explicitly strengthened its SSA compliance and enforcement regime, signaling that housing availability concerns have reached a political tipping point.
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 Areas in Tasmania Are Best for Long-Term Rentals?
Which neighborhoods in Tasmania have the strongest demand for long-term tenants?
Hobart 7000 CBD, Sandy Bay, and Launceston's family-friendly suburbs like West Launceston, Trevallyn, and South Launceston have the strongest long-term tenant demand in Tasmania.
In these high-demand Tasmania rental markets, well-maintained properties typically rent within two to three weeks of listing, with vacancy rates staying below the state average.
Different tenant profiles drive demand in each of these Tasmania neighborhoods:
- Hobart 7000: Government workers, professionals, and downsizers seeking walkable inner-city living.
- Sandy Bay: University students, academic staff, and families wanting school and beach access.
- West Launceston and Trevallyn: Young families and professionals seeking quiet streets near employment.
- Mowbray: Students and essential workers attracted by affordability and Launceston proximity.
The key amenity that makes these Tasmania suburbs attractive to long-term tenants is reliable access to employment hubs, whether that means walking distance to Hobart's state government offices or a short commute to Launceston's regional services.
Finally, please note that we provide a very granular rental analysis in our property pack about Tasmania.
What are the average long-term monthly rents by neighborhood in Tasmania in 2026?
As of early 2026, average monthly rents in Tasmania range from around AUD 1,850 for units in affordable suburbs like Mowbray up to AUD 3,000 or more for houses in prime inner Hobart neighborhoods like Battery Point.
In Tasmania's most affordable rental suburbs such as Mowbray, entry-level apartments typically rent for AUD 1,800 to AUD 2,100 per month, while houses range from AUD 2,000 to AUD 2,300 per month.
In mid-range Tasmania suburbs like Moonah or South Launceston, you can expect to pay between AUD 2,200 and AUD 2,600 per month for a standard three-bedroom house.
In the most expensive Tasmania neighborhoods like Battery Point and Sandy Bay, high-end houses command rents of AUD 2,700 to AUD 3,000 per month, with premium waterfront or heritage properties reaching higher.
You may want to check our latest analysis about the rents in Tasmania here.
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Which Are the Up-and-Coming Areas to Invest in Tasmania?
Which neighborhoods in Tasmania are gentrifying and attracting new investors in 2026?
As of early 2026, Moonah in Hobart's northern corridor, South Launceston, and Trevallyn near Launceston are the Tasmania neighborhoods showing the clearest signs of gentrification and growing investor interest.
These gentrifying Tasmania suburbs have experienced annual price appreciation in the range of 3% to 6% over recent years, outpacing some established areas while still offering yields around 4.5% to 5%.
Which areas in Tasmania have major infrastructure projects planned that will boost prices?
Greater Hobart's northern growth corridor, Launceston's CBD revitalization zone, and suburbs along improved transport links are the Tasmania areas most likely to benefit from planned infrastructure investment.
Specific projects include the ongoing Greater Hobart Traffic Solution upgrades improving northern corridor commutes, Launceston's City Heart Project revitalizing the CBD, and various state government investments in health and education facilities across both cities.
Historically in Tasmania, suburbs that gain improved transport access or new anchor institutions like hospitals or university campuses have seen price uplifts of 5% to 15% above surrounding areas within three to five years of project completion.
You'll find our latest property market analysis about Tasmania here.
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.
Which Areas in Tasmania Should I Avoid as a Property Investor?
Which neighborhoods in Tasmania with lots of problems I should avoid and why?
Investors without strong local knowledge or property management capabilities should be cautious about Risdon Vale, parts of outer Glenorchy, and Mowbray's lower-quality stock in Tasmania.
Each of these Tasmania suburbs presents specific challenges:
- Risdon Vale: Higher tenant turnover and property wear require hands-on management.
- Outer Glenorchy pockets: Thinner buyer pools make resale slower and more price-sensitive.
- Mowbray lower-quality stock: Older properties need more maintenance and attract less stable tenants.
For these Tasmania neighborhoods to become more viable, investors would need either significant urban renewal investment, improved employment anchors nearby, or a personal edge in tenant selection and property management.
Buying a property in the wrong neighborhood is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Tasmania.
Which areas in Tasmania have stagnant or declining property prices as of 2026?
As of early 2026, some premium Tasmania suburbs like Sandy Bay have shown modest or flat price growth in recent periods after strong gains in prior years, while certain North-West coast towns have experienced genuine stagnation.
In these slower Tasmania markets, annual price changes have ranged from flat (0%) to modest single-digit growth of 1% to 3%, compared to 5% or more in gentrifying middle-ring suburbs.
The underlying causes vary by Tasmania area:
- Sandy Bay: Already-high prices limit further growth as buyers reach affordability ceilings.
- Some North-West coast towns: Population stability and limited employment growth cap demand.
- Peripheral outer suburbs: Distance from jobs and services reduces appeal as fuel costs rise.
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Which Areas in Tasmania Have the Best Long-Term Appreciation Potential?
Which areas in Tasmania have historically appreciated the most recently?
Battery Point, Sandy Bay, inner Hobart 7000, and quality Launceston suburbs like West Launceston have delivered the strongest appreciation in Tasmania over the past five to ten years.
Here is how these top Tasmania areas have performed:
- Battery Point: Approximately 60% to 80% total appreciation over the past decade.
- Sandy Bay: Around 50% to 70% cumulative growth, driven by lifestyle and scarcity.
- Hobart 7000 CBD: Strong double-digit annual gains during Tasmania's boom years.
- West Launceston: Steady 4% to 6% annual growth with lower volatility than Hobart prime.
The main driver behind above-average appreciation in these Tasmania areas has been the combination of housing scarcity, strong local wage growth in government and services, and a surge in interstate migration that peaked in the early 2020s.
By the way, you will find much more detailed trends and forecasts in our pack covering there is to know about buying a property in Tasmania.
Which neighborhoods in Tasmania are expected to see price growth in coming years?
Moonah, South Launceston, Hobart's middle-ring commuter suburbs, and well-located Launceston family neighborhoods are the Tasmania areas most likely to see continued price growth.
Projected growth rates vary by Tasmania neighborhood:
- Moonah: Expected 4% to 6% annual growth as gentrification continues.
- South Launceston: Projected 3% to 5% growth driven by family buyer demand.
- Hobart middle-ring suburbs: Likely 3% to 5% as affordability pushes buyers outward.
- Trevallyn: Anticipated 3% to 4% growth with stable owner-occupier demand.
The single most important catalyst for future price growth in these Tasmania neighborhoods is the ongoing affordability squeeze in prime inner suburbs, which pushes both owner-occupiers and investors toward better-value middle-ring locations.
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 Do Locals and Expats Really Think About Different Areas in Tasmania?
Which areas in Tasmania do local residents consider the most desirable to live?
Sandy Bay, Battery Point, and West Hobart are the Tasmania neighborhoods that local residents consistently rank as the most desirable places to live.
Each of these Tasmania areas appeals to locals for specific reasons:
- Sandy Bay: Beach access, excellent schools, and leafy streets attract families.
- Battery Point: Historic village atmosphere and Salamanca proximity appeal to professionals.
- West Hobart: Quiet residential feel with easy city access suits downsizers and couples.
These locally-preferred Tasmania suburbs tend to attract established professionals, senior public servants, medical specialists, and families who prioritize lifestyle over investment yield.
Local preferences in Tasmania generally align with what foreign investors target for capital growth, but diverge on yield expectations, as locals accept lower returns for lifestyle benefits that investors may not value as highly.
Which neighborhoods in Tasmania have the best reputation among expat communities?
Battery Point, Sandy Bay, and inner Hobart 7000 have the strongest reputations among expat communities considering Tasmania for relocation or investment.
Expats prefer these Tasmania neighborhoods for clear reasons:
- Battery Point: Walkable lifestyle and cultural amenities suit newcomers without cars.
- Sandy Bay: University presence creates an international community and familiar services.
- Hobart 7000 CBD: Central location simplifies life for those unfamiliar with the city.
The typical expat profile in these popular Tasmania suburbs includes retired professionals from mainland Australia, remote workers from overseas seeking lifestyle migration, and families relocating for education or lifestyle reasons.
Which areas in Tasmania do locals say are overhyped by foreign buyers?
Battery Point, premium Sandy Bay waterfront, and some Salamanca-adjacent apartments are the Tasmania areas that locals most commonly describe as overhyped by foreign or interstate buyers.
Locals view these Tasmania areas as overvalued for specific reasons:
- Battery Point: Yields below 3% mean you pay heavily for lifestyle, not returns.
- Sandy Bay waterfront: Prices reflect scarcity and views, not underlying rental fundamentals.
- Salamanca apartments: Tourist appeal inflates prices beyond what local incomes support.
Foreign buyers typically value the "postcard appeal," heritage charm, and international name recognition of these Tasmania locations, while locals focus more on practical factors like commute times, school catchments, and value for money.
By the way, we've written a blog article detailing the experience of buying a property as a foreigner in Tasmania.
Which areas in Tasmania are considered boring or undesirable by residents?
Some outer northern Hobart suburbs, isolated North-West coast towns, and areas with limited retail or cafe culture are the Tasmania locations residents most commonly describe as boring or undesirable.
Residents find these Tasmania areas less appealing for specific reasons:
- Outer northern Hobart: Car-dependent living and limited dining or entertainment options.
- Isolated North-West towns: Distance from Hobart and Launceston limits social and career opportunities.
- Industrial-adjacent suburbs: Lack of streetscape appeal and neighborhood character.
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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 Taxation Office (ATO) | The Australian Government's official tax authority publishing rule changes. | We used ATO guidance to explain what foreign buyers can and cannot purchase in Tasmania. We referenced the established dwelling ban dates and exceptions. |
| Foreign Investment Review Board (FIRB) | The federal government's primary guidance body for foreign investment policy. | We used FIRB Guidance Note 6 to describe approval requirements and exceptions. We explained which property types are allowed for foreign buyers. |
| Tasmania State Revenue Office | The official Tasmanian administrator for transfer duty and surcharges. | We used SRO factsheets to quantify the foreign investor duty surcharge. We kept our total cost estimates evidence-based rather than approximate. |
| Australian Bureau of Statistics (ABS) | Australia's national statistics agency with authoritative housing data. | We used ABS average floor area data (182.4 m² for houses) to convert prices to per-square-meter estimates. We created comparable suburb rankings using consistent methodology. |
| PropertyValue (Cotality/RP Data) | A major housing data provider using large sales and rental datasets. | We used suburb median prices, rents, and yields for Tasmania neighborhood comparisons. We referenced nearby-suburb tables for affordability and yield rankings. |
| Realestate.com.au | Australia's largest listings portal with defined suburb metrics. | We pulled current-year snapshots for Hobart and Launceston suburb prices and rents. We triangulated yields and rent figures against other data sources. |
| Cotality (formerly CoreLogic) | A major housing index provider with published hedonic methodology. | We used Cotality indices to validate market direction in early 2026. We triangulated Tasmania's cycle position against their suburb-level trends. |
| AirDNA | A widely-used short-term rental analytics provider tracking Airbnb and Vrbo. | We used AirDNA for Hobart occupancy and daily rate benchmarks. We cross-checked short-term rental performance claims against their market data. |
| Tourism Tasmania | The state's official tourism body citing STR Global and AirDNA data. | We used their accommodation reports to ground short-stay demand analysis. We connected visitor patterns to where STR demand concentrates in Tasmania. |
| State Planning Office Tasmania | The official planning authority describing SSA tracking and compliance. | We used their fact sheets to explain short-stay accommodation regulations. We flagged compliance risks by zone for potential STR investors. |
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