Hobart Property Market Update 1st Half 2025
Hobart is the capital of Tasmania, nestled along the River Derwent at the foot of Mt Wellington. Hobart offers a charming blend of rich history, as Australia second oldest capital city. With modern amenities but in a relaxed setting, Hobart is ideal for families.
Property Trends
In Q4 2024, Hobart recorded a median house price of $897,000 and a median unit price of $530,500. This represents an annual (Q4 2023 - Q4 2024) softening of -5.0% for houses and -21.6% for units. Comparing Q4 2023 and Q4 2024, total sales increased by 40.9% (to 155 sales in Q4 2024) for houses and by 4.2% (to 74 sales in Q4 2024) for units. The current price softening in Hobart reflects higher interest rates and economic conditions. That said, buyer interest remains high, and with a few new stand-alone houses planned for 2025 the potential for a market recovery is high. Thus, buyers need to act fast and capitalise on current more affordable house and unit prices.
Project Development
Hobart will see approx. $1.1B of new projects commencing construction in 2025. The Macquarie Point Waterfront/Hobart Railyard Redevelopment ($300.0M) and Macquarie Wharf Redevelopment ($240.0M) are large redevelopment projects that will assist in reshaping Hobart’s waterfront. With only 52 standalone dwellings planned for 2025, there will be an undersupply of new houses. This will put pressure on property prices.
Rental Market & Growth
House rental yields in Hobart (7005) was 3.4% as of December 2024, slightly below Hobart LGA (4.0%) and Hobart Metro (3.6%). That said, median house rental price increased by 3.6% in the past 12 months to Q4 2024, to sit at $580 per week. The number of housed rented declined, by -10.9% (to 408 houses in Q4 2024), which indicates an undersupplied market. Overall, there is a highly demanded and competitive house rental market in Hobart, which is beneficial to investors.
Vacancy Rates & Property Investment
Hobart (7005) recorded a vacancy rate of 0.9% in December 2024, slightly above the Hobart LGA average of 0.7% and Hobart Metro’s 0.6%. Vacancy rates have decreased in the past 12 months, indicating an even tighter rental market. Further, a 0.7% vacancy rate is significantly below the Real Estate Institution of Australia’s healthy benchmark of 3.0%, indicating a tight rental demand and quicker occupancy of rental properties in Hobart. With house and unit entry/sale prices currently more affordable in Q4 2024, there is an ideal environment for investors to enter the market.
