Hobart Property Market Update 2nd 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’s second oldest capital city. With modern amenities but in a relaxed setting, Hobart is ideal for families.
Property Trends
In Q2 2025, Hobart recorded a median house price of $930,000 and a median unit price of $680,000. This represents an annual (Q2 2024 – Q2 2025) stable price growth for houses and a slight softening of -1.0% for units. Comparing Q2 2024 and Q2 2025, total sales surged by 12.9% (to 149 sales) for houses and grew by 12.8% (to 97 sales) for units. This suggests that although there is high demand for properties, higher interest rates have also impacted the market. This indicates that now is an ideal time for buyers to enter the market. There are several new houses and units planned to commence in 2025, which can assist with ensuring a more sustainable price growth.
Project Development
Hobart will see approx. $671.2M of new projects commencing construction in 2025. The Macquarie Wharf Redevelopment ($240.0M) and Tasman Highway – Midway Point & Sorell Causeways & McGees Bridge Stages 1–2 are large infrastructure projects that will assist in reshaping Hobart and access throughout the city. With 108 units, 2 townhouses and 52 standalone dwellings planned for 2025, this will help with supply, however there is still an undersupply, which will put pressure on property prices.
Rental Market & Growth
House rental yields in Hobart were 3.1% as of June 2025, slightly below the Hobart LGA (3.9%) and the Hobart Metro (3.5%). That said, median house rental price increased by 7.8% in the past 12 months to Q2 2025, at $620 per week. During this time the number of houses rented decreased by -29.2% (to 252 houses in Q2 2025); thus, an undersupply of rental houses. The unit rental market shows a similar pattern, benefitting investors.
Vacancy Rates & Property Investment
Hobart recorded a vacancy rate of 1.1% in June 2025, slightly above the Hobart LGA average of 0.7% and Hobart Metro’s 0.6%. Vacancy rates have fluctuated in the past 12 months, but overall showed a declining pattern, which indicates an even tighter rental market. Further, a 1.1% vacancy rate is well below the Real Estate Institute of Australia’s healthy benchmark of 3.0%, thus quicker occupancy of rental properties in Hobart. This creates a conducive environment for investors, especially with a more stable house sales price and affordable unit sales price in the past 12 months to Q2 2025.
