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

Hobart’s housing market in early 2025 showed modest signs of recovery after a prolonged period of decline. Dwelling values lifted 0.9% over April, contributing to a quarterly growth figure of 0.9% and a slight annual rise of 0.5%​. The median dwelling value in Hobart now sits at $664,462, reflecting its more affordable positioning compared to other capital cities​.

Despite these improvements, Hobart’s housing values remain 11.1% below their March 2022 peak​, highlighting the scale of the earlier downturn and the gradual nature of the recovery.

Hobart Property Price Growth

• Monthly Change (April 2025): +0.9%
• Quarterly Change: +0.9%
• Annual Change: +0.5%
• Total Return: 4.8%​

Interestingly, the house market outpaced the unit sector considerably. House values rose 1.4% over the last quarter, while unit values actually fell by -1.1%​—the largest disparity among all capitals during the period.

CoreLogic Home Value Index

CoreLogic Home Value Index, Released on 1st May 2025

Hobart Property Market Trends

A notable trend is the renewed strength in rental growth. Hobart recorded a 5.4% annual rise in rental values, reversing a brief negative growth phase (-0.3%) seen a year prior​. Gross rental yields for dwellings sit at 4.4%, positioning Hobart competitively among the capital cities for investors​.

At the suburb level within Greater Hobart:

• Hobart – North East saw the strongest annual dwelling value increase at 4.1%.
• Other subregions such as Brighton and Hobart – North West posted smaller gains of 3.0% and 1.5% respectively.
• Inner Hobart was the only subregion to decline, slipping -3.1% over the year​.

Change in dwelling values over key time periods

Hobart Property Market Forecast

Looking forward, Hobart is expected to experience modest further growth. Factors supporting this outlook include:

• Prospective interest rate cuts boosting sentiment and demand.
• Ongoing tightness in housing supply. However, affordability challenges and broader economic uncertainty could temper the pace of any gains​.

Additionally, consumer confidence remains fragile. While values are stabilising, actual transaction volumes (sales and new listings) are lagging—similar to national trends—which may cap short-term momentum.

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.

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Conclusion for Homeowners

Hobart’s housing market is navigating a delicate recovery phase. After the sharp post-peak fall, the city is now showing gentle price increases and renewed rental strength. Yet, it remains one of the few capitals still substantially below its previous price peak. Overall, CoreLogic’s data paints a picture of cautious optimism for Hobart heading into the second half of 2025, with modest growth likely but not guaranteed.

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