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

Hobart saw modest recovery in February 2025, with dwelling values rising 0.4% after previous declines. However, over the last three months, the market remains slightly down at -0.1%, reflecting ongoing volatility. Despite this, sentiment is improving, potentially signaling a shift in market conditions.

Hobart Property Price Growth

Annual price movement for Hobart remains slightly negative at -0.3%, showing it is still in a correction phase. The median dwelling value is $661,544, making it one of the more affordable capital cities. Notably, the upper quartile of the market has declined by 16.4% from its peak, indicating a more significant correction at the premium end.

CoreLogic Home Value Index

CoreLogic Home Value Index, Released on 3rd March 2025

Hobart Property Market Trends

• Stock levels remain high, with listings up 25.2% compared to the five-year average, giving buyers more negotiating power.
• Rental market stabilizing, with gross rental yields at 4.5%, suggesting investors may see steady returns.
• Consumer sentiment is gradually improving, driven by expectations of lower interest rates in 2025.

Change in dwelling values over key time periods

Hobart Property Market Forecast

While short-term volatility persists, Hobart’s affordability advantage compared to other capitals may support a more substantial recovery. Lower interest rates and improved sentiment could help stabilize the market, but high inventory levels may keep price growth subdued.

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 market is transitioning from decline to stabilization, with improved buyer confidence but continued price softness. Investors may find rental yields appealing, while buyers can take advantage of the higher stock levels to secure better deals. Further recovery will depend on economic conditions and interest rate movements.

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