Hobart property market data, trends, forecasts

Hobart property market news

The Hobart property market has been on a unique journey over the past several years. Prices raced ahead at an incredible rate during the boom of 2021 with growth peaking at nearly +37 per cent but, as interest rates began to climb in 2022, Hobart saw the market begin to correct before hitting a plateau in early 2023. 

Since then, the Hobart market has held more-or-less flat according to CoreLogic data, bringing only marginal movements to the Tasmanian capital. 

Hobart property prices - September 2024

With high interest rates, poor affordability and the FOMO-driven frenzy of interstate migration now in the past, a lid has been kept on Hobart price growth for the time being. Sellers appear to be more hesitant in 2024; new listings for September were down -21.3 per cent year-on-year, while total listings fell -10.5 per cent. Buyer activity has increased, however, with sales volumes getting a +4.7 per cent bump over last year. 

But Days on Market (DOM) has increased substantially, from 32 days in September 2023 right up to 52 days in 2024, suggesting the market is now more slow-moving.

Hobart house prices

With property values in the previously more affordable Brisbane, Perth and Adelaide surging in 2024, Hobart's house prices now represent strong value relative to the rest of Australia's capital cities.

Hobart house prices - September 2024

Hobart's median house price dipped by -0.2 per cent over September, adding up to a -0.9 per cent fall over the last quarter. Annual declines of a modest -1.6 per cent have brought the median Hobart house's price down to around $692,500.

Hobart unit prices

Unit prices in Hobart have outperformed houses over the past 12 months, and the city maintains the smallest gap between the two property types of any Australian capital.  

Hobart unit prices - September 2024

Hobart's median unit price fell by -1.1 per cent in September following some small recent growth. That brings quarterly movements to -0.5 per cent, while annual growth remains positive at +1.2 per cent, equating to a median price of nearly $537,000.

Hobart property market forecast 2024-25

Although Hobart property prices have dropped considerably since their 2022 peak, they remain almost +27 per cent above pre-pandemic levels. After a period of stagnation, can Hobart's real estate market get another injection of growth? 

KPMG's latest Residential Property Market Outlook report does forecast solid gains to return over 2025 for both houses and units in Hobart. 

KPMG's Hobart property price forecast 2024-25

Whether or not this growth can be achieved still largely depends on the supply and demand dynamic over the coming months. High interest rates had extensive impacts on the market and, while there is now a period of stability, the high rate environment is still causing stress for buyers and homeowners alike. 

Currently, the RBA sits at 4.35 per cent, a long way up from the emergency-level 0.1 per cent rate borrowers were enjoying until May 2022. The banks mostly expect there will be no further hikes, with rate cuts to begin in the later stages of 2024 or early in 2025.

Big four banks' cash rate forecast 2024-25

Hobart house price graphs and charts

The latest Hobart property price graph from CoreLogic's monthly chart pack clearly shows the extraordinary high of the 2021 boom followed by the interest rate-driven decline of 2022 and subsequent plateau through 2023 and 2024.

Hobart property info for sellers

On paper, selling statistics for Hobart property looks to be weighted towards vendors. Listings numbers are well below where they were 12 months ago while sales volumes have increased, suggesting buyers are absorbing what little is available on the market. It's worth noting, though, that Days on Market has increased significantly, so the pace and urgency of the market has slowed.

Property investing in Hobart

Hobart looks to be an enticing market for investors seeking cash flow and affordability as rental yields are higher than Australia's five biggest capital cities while property prices are substantially lower. Vacancy rates are holding at very low levels and asking rents continue to increase, suggesting rental demand is strong. 

Capital gains have not delivered to the same extent as some other markets, so Hobart may appeal more to investors prioritising yield over short-term growth.

Top 5 Hobart suburbs for annual growth