Hobart Property Market – Prices, Trends, Forecast [July 2025]

Hobart’s housing market continues to stabilise in 2025, following the broader national trend of modest gains. While not leading in growth, the city has halted its previous declines and returned to positive monthly movement. With a current median dwelling value of $693,371, Hobart remains one of the more affordable capital cities, though its values have come off their peak significantly.

Market Highlights

• Dwelling values edged up 0.1% in July, with 0.2% growth over the quarter, but values remain 2.0% lower year-on-year.
• Hobart has fallen 10.4% below its March 2022 peak, the largest decline of any capital city.
• Strongest-performing subregion: Hobart – North East (6.8% annual growth); weakest: Hobart Inner (-3.4%).
• Rents climbed 6.4% for houses and 6.8% for units, with gross yields at 4.2%, providing solid returns for investors.
• Outlook remains steady, with limited supply and easing rates supporting a slow recovery through late 2025.

Housing Metrics Overview

See how Hobart’s property values have performed across houses and units over various timeframes, along with returns, yields, and median prices.

Hobart Property Price Growth

In July, Hobart’s dwelling values rose 0.1%, marking a slight turnaround from earlier softness. Quarterly growth was also a mild 0.2%, but on a yearly basis, the city remains 2.0% below its value from a year ago.

Hobart has experienced a 10.4% decline from its peak in March 2022, the largest fall among all capital cities. However, over the past five and ten years, dwelling values are still up 29.7% and 85.9% respectively, reflecting the city’s long-term growth story despite the recent correction.

In terms of local highlights, Hobart – North East saw 6.8% annual growth, making it the city’s strongest-performing SA3, while Hobart Inner fell -3.4%.

View the latest property value movements across Australia’s capital cities. Use the filters to explore monthly, quarterly, and annual changes by dwelling type and region. Data sourced from CoreLogic.

CoreLogic Home Value Index, Released on 1st August 2025

Hobart Property Market Trends

Rental market activity in Hobart has been relatively stable, with house rents rising 6.4% and unit rents up 6.8% over the year to July 2025. This marks one of the stronger rental growth rates among the smaller capitals, supported by limited rental supply and ongoing demand.

Gross rental yields sit at 4.2%, placing Hobart on par with Perth and above most eastern capitals, providing a healthy return environment for property investors.

Dwelling value growth over the past 5 and 10 years, including combined capital and regional market performance.

Hobart Property Market Forecast

The outlook for Hobart suggests continued stabilisation with modest growth potential through the remainder of 2025. Influences such as low interest rate expectations, improving buyer sentiment, and persistent stock shortages should support further price recovery.

However, Hobart is likely to remain one of the more subdued capital markets, with slower momentum compared to faster-growing cities like Perth or Brisbane. Affordability constraints and limited economic scale may moderate buyer enthusiasm.

The Reserve Bank of Australia’s ongoing adjustments to interest rates will likely play a crucial role in shaping market dynamics, as higher borrowing costs limit purchasing power for many buyers.

Here are some of the most recent forecasts by the big-4 banks in Australia:

• ANZ predicts a 5-6% increase in capital city property prices in 2024, with Brisbane expected to see the highest rise at 9-10%, Perth property values could go up by 1-11%, Sydney by 4-5%, and Melbourne prices by 2-3%.
• CBA forecasts a 5% rise in capital city prices, with some variations: Brisbane is anticipated to grow by 6%, Melbourne and Perth by 5%, Sydney by 4%, and Adelaide by 1%.
• NAB projects a 5.4% average increase across the capitals, with Brisbane expected to see a 6.5% rise, Perth and Adelaide by 6.2%, Melbourne by 5.5%, Sydney by 5%, and Hobart remaining flat.
• Westpac expects a 6% growth across the combined capitals, with Perth leading at 10%, followed by Brisbane at 8%, Sydney at 6%, Adelaide at 4%, and Melbourne at 3%

Oxford Economics recently released property forecasts predicting where house prices will be in three years.

Calculate your future property value with these forecasts in mind…

Calculate your future property value with these forecasts in mind…

Enter your property details below and we will give you an estimate of the value of your home.

Property Purchase Price $1M

Average Annual Appreciation 5%

Years Since Purchase 10

CALCULATE

Future Property Value

$0

How much is my property worth?

Get Your Free Property Value Report Compare Local Agents

Conclusion for Homeowners

Hobart is quietly regaining ground after a period of decline. Though still below peak levels, the market is showing signs of recovery, bolstered by resilient rental demand and improving yields. While not leading the national rebound, Hobart offers a balanced market for buyers and investors looking for stable, mid-term returns rather than rapid capital growth.

Make Smarter Property Decisions Today