Hobart Property Market Update 1st Half 2026
Hobart is the capital of Tasmania, nestled along the River Derwent at the foot of Mt Wellington. Hobart has a rich history, as Australia 2nd oldest capital city. Hobart offers a unique mix of commercial services and lifestyle, ideal for professionals and families.
Property Trends
In Q4 2025, Hobart recorded a median house price of $1,012,500, and a median unit price of $651,000. This is an annual (Q4 2024 – Q4 2025) price growth of 4.7% for houses and 13.4% for units. Between Q4 2024 – Q4 2025 total sales increased, by 37.1% (to 170 for houses in Q4 2025) and by 1.2% for units (to 86 sales in Q4 2025). There is high demand for houses and units, due to reduced interest rates. Thus, now is an ideal opportunity for owners to capitalise on their investment. There are a few residential projects planned in 2026, which will assist with supply. However, the number of new houses planned for construction are still below Q4 2025 sales, suggesting further price growth is likely.
Project Development
Hobart will see approx. $1.8M of new projects commencing construction in 2026. There is new residential stock in the pipeline in 2026; of 86 units/apartments, 7 townhouses, and 45 dwellings. Once built, the incoming supply of ready-to-go residential and mixed-use projects will aid in answering current high demand and has a potential of creating a more sustainable price growth environment in the long term.
Rental Market & Growth
House rental yields in Hobart were 3.2% in December 2025, comparable to Hobart LGA (3.4%) and Hobart Metro (3.5%). This was paired with a 4.8% increase in median house rental price in the past 12 months to Q4 2025, at $650 per week. The number of houses rented decreased, by -9.9% in the past 12 months, to 192 rentals in Q4 2025. The unit market shows a similar trend, of higher median rental price. This suggests there is an undersupplied and highly demanded rental market in Hobart, which benefits investors.
Vacancy Rates & Property Investment
Hobart recorded a vacancy rate of 0.7% in December 2025, on par with Hobart LGA’s 0.5% and Hobart Metro 0.5% average. That said vacancy rates in Hobart decreased in the past 12 months, indicating a tighter rental market. Moreover, a 0.7% vacancy rate is significantly below the Real Estate Institution of Australia’s healthy benchmark of 3.0%, suggesting there is quicker occupancy of rental homes in Hobart. This is a conducive environment for investors, even if the median house and unit sales price (thus, entry price) have increased in the past 12 months to Q4 2025.
