Hobart Property Market Update 2nd 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 Q2 2026, Hobart recorded a median house price of $1,025,000, and a median unit price of $650,000. This represents an annual (Q2 2025 – Q2 2026) price growth of 10.8% for houses and by 2.4% for units. Between Q2 2025 – Q2 2026 house sales have declined, by -7.1% (to 143 for houses in Q2 2026) and by -25.9% for unit sales (to 83 sales in Q2 2026). The house and unit market is undersupplied, which has created a buffer against multiple cash rate hikes in 2026. Thus, there is a continuing opportunity for owners to capitalise on their investments. Further, with limited new residential stock set to commence in 2026 the current undersupply will continue, hence further price growth.
Project Development
Hobart will see approximately $1.8B of new projects due to commence construction in 2026. There is new residential stock planned for 2026: of 3 townhouses, 45 dwellings, and 15 units/apartments. The incoming supply of ready-to-go residential stock will aid in answering the current high demand. However, house and unit sales in Q2 2026 are much higher (143 houses and 83 units sold). This suggests that the current undersupply will continue. Thus, higher prices are highly likely and buyers must act fast.
Rental Market & Growth
House rental yields in Hobart were 3.9% in June 2026, higher than Hobart LGA (3.6%) and Hobart Metro (3.5%). This was paired with a 4.6% increase in median house rental price in the past 12 months to Q2 2026, at $680 per week. The number of houses rented also increased, by 37.3% in the past 12 months, to 217 rentals in Q2 2026. The rental market in Hobart is in high demand, which is beneficial for investors looking to enter the market.
Vacancy Rates & Property Investment
Hobart recorded a vacancy rate of 1.4% in June 2026, which is higher than Hobart LGA (0.7%) and Hobart Metro 0.7%. Vacancy rates in the past 12 months have increased, due to more investors entering the market. That said, a 1.4% vacancy rate is still well below the 3.0% benchmark, indicating there is quicker occupancy of rental homes in Hobart. Overall, there is still a conducive environment for investors, even with a higher median house sales price (thus, entry price) in the past 12 months to Q2 2026.
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