Best areas to buy property in Tasmania in 2024

Thinking of buying property in Tasmania? 

Then you will want to research the Tasmanian housing market thoroughly before you make a move. To assist you read this article, where we highlight the latest stats and expert insights  - including how this market performed in 2023, and what may transpire in 2024.

Let’s start with a big-picture look back at last year and what the numbers look like.

What did the property market in Tasmania look like in 2023?

Overall Tasmania property prices cooled over 2023, though this is by no means a trend that applies to the entire state. 

According to CoreLogic data, Hobart values were in the red for the year, down -0.8 per cent with Hobart for a median value of $656,947. This is -11.2 percent lower than their March 2022 peak. Look more closely and houses ($700,810) underperformed -1.1 per cent over the year, with units ($533,056) posting a marginal gain of +0.1 per cent. Asking rents in Hobart have also dropped, down -3.5 per cent over the year, though average rental yields are at 4.1 percent. 

Switching to regional markets, these were also softer overall, down -0.1 per cent for a median value of $533,056. Regional areas like Launceston (-13.0 per cent) and Devonport (-3.0 percent) have also recorded declines, boasting steady price growth and continued buyer interest. 

So what are experts predicting for ‘24?

Tasmania property market forecast 2024

Nationally most experts predict the year ahead to be steady rather than spectacular, mainly due to the uncertainty around inflation and interest rates. This also holds true for the Tasmanian market.

Analysts at NAB are predicting Hobart property prices will remain flat next year, while ANZ is forecasting a modest +3 percent uptick. KPMG has the most optimistic prediction for Hobart property prices, forecasting a rise of +11 per cent. 

McGrath’s 2024 report is bullish about the medium term, believing strong growth will be driven by, "a booming tourism industry, strong export market and low unemployment levels." They also believe the island's second city, Launceston, is well-positioned for recovery - with a number of state-funded infrastructure projects, and regions affordability the primary drivers. 

Let’s now take a closer look at house price predictions.

How are Tasmanian house prices expected to change in 2024?

Christopher’s Housing Boom and Bust Report 2024 is relatively pessimistic about the prospects for a turnaround for Hobart house prices this year. 

Their forecast is for a drop of -7 per cent to -3 per cent over ‘24. This is based on a number of key indicators, including the unemployment rate (4.4 per cent) and population growth (0.4 per cent) - the highest/lowest respectively of all states. There is also an excess of housing stock (and a relative dearth of buyers), and more housing completions scheduled for FY24 - meaning vacancy rates are likely to remain high well into ‘25. 

Domain is more optimistic, forecasting Hobart house prices to rise by a modest +2 per cent to 4 per cent - though they expect interest rates to remain high well into the latter part of 2024. This is likely to keep any more dynamic growth in Hobart house prices fairly modest.

What's the Tasmanian apartment market like?

Like houses, apartments have had a very quiet year from a growth perspective, up +0.1 per cent over the year. On a positive note, December ‘23 saw values jump (+0.7 per cent), and they are also up in the final quarter of the year, +1.4 per cent. 

However, persistently high vacancy rates are likely to mean a fall in Hobart rents in the year ahead. SQM Research is forecasting a drop of -5 per cent to -2 per cent over ‘24, after they fell -2.3 per cent last year. 

Let’s now look at what suburbs could be poised for a jump in value next year.

What are the best suburbs to invest in Tasmania in 2024?

Need to shortlist some ‘hot’ suburbs to shortlist? Here they are, from a variety of property analysts and experts:

• Smart Property Investment’s Fast 50 Report ‘24 likes Rokeby, in Hobart’s south-east, for its liveability and improving transport infrastructure. The median house price is $586,000, and values grew +2.1 per cent last year. 
• Realestate.com.au and McGrath both like Devonport, for its affordability and infrastructure investment. The median house price is $455,000, and houses rent for $400 per week with an annual rental yield of 4.8 per cent. 
• Realestate.com.au likes Burnie, for its affordability and investment prospects. The median house price is $440,000 and houses rent for $385 per week with an annual rental yield of 4.2 per cent.  
• The REIT notes that Kingston recorded 35 sales in the final quarter of ‘23, the third-highest figure in the state. The median house price is $726,000 and houses rent out for $600 per week with an annual rental yield of 4.3 per cent. Realestate.com.au likes the suburb for its relative affordability and family appeal. 
• Realestate.com.au likes Invermay, just north of the Launceston CBD for its developing infrastructure, investment prospects and affordability. The median house price is $525,000 and has grown +1.0 per cent over the past year. Houses here  rent for $430 per week with an annual rental yield of 4.6 per cent. 

Like any location, you need to look at a combination of indicators when analysing Tasmanian property – including population growth, economic growth, affordability, rental yield and any infrastructure for the area.