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

Hobart stands out as the only capital city to record a monthly decline in dwelling values in March 2025, with a -0.4% fall. While other capitals benefitted from improved sentiment and the effects of interest rate cuts, Hobart’s market remains subdued. Its median dwelling value sits at $657,059.

Hobart Property Price Growth

Over the past 12 months, Hobart’s home values have declined -0.2%, marking it among the weakest annual performers. Since its peak in March 2022, the market has dropped -12%, showing a more persistent downturn than most other capitals. However, there was a slight quarterly uptick of 0.2%, suggesting some stabilisation.

CoreLogic Home Value Index

CoreLogic Home Value Index, Released on 1st April 2025

Hobart Property Market Trends

Unlike other cities seeing modest to strong gains, Hobart’s housing market appears to be lagging the national recovery. On a more positive note, rental values in Hobart rose 1.2% in March, the strongest monthly rent increase of all capitals. Gross rental yields are relatively healthy at 4.4%, potentially attracting investors despite the weaker capital growth.

Change in dwelling values over key time periods

Hobart Property Market Forecast

Looking ahead, Hobart’s performance will likely remain subdued, constrained by affordability challenges, muted demand, and ongoing population normalisation. With the rate-cutting cycle expected to be drawn out and housing supply tight, significant price recovery may be slow.

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 remains in a soft patch, showing only minimal short-term improvement. While rental conditions are firming, capital growth continues to underperform. Unless macro conditions like interest rates and consumer sentiment provide a stronger tailwind, Hobart is likely to lag the broader national recovery for now.

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