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

Despite some early signs of national housing recovery, Hobart remains one of Australia’s slowest rebounding capital cities in 2025. Property values continue to drift, with only minor gains in select outer suburbs, while the city center remains flat. Rents are growing modestly, yields are steady, and investor sentiment is cautious amid limited economic momentum. While interest rate cuts may offer mild support, Hobart’s outlook for the remainder of the year leans toward stability rather than growth.

Market Highlights

• Hobart’s housing market remains subdued in 2025, continuing to lag behind the national recovery. Dwelling values are down 1.2% annually and remain 10.3% below their early 2022 peak, reflecting a slow and shallow recovery.
• With a median dwelling value of $668,174, Hobart is relatively affordable for a capital city, but still expensive compared to local incomes. Growth is limited to outer suburbs like Brighton (1.7%), while central areas remain flat or declining.
• Rental growth is moderate—house rents up 2.9%, unit rents 3.5%—with gross yields at 4.0%, offering stable but unspectacular returns. Demand is soft, investor activity is muted, and the city lacks major economic drivers.
• Looking ahead, falling interest rates may help, but without stronger fundamentals, only mild price stability is expected through late 2025. Hobart remains a steady, lower-volatility market with modest yield and long-term potential—but limited short-term upside.

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

Hobart is one of the only capital cities to record a decline in annual dwelling values:

• Quarterly change (to June 2025): -0.1%
• Monthly change (June): +0.2%
• Annual change: -1.2%

Since peaking in early 2022, values in Hobart are still 10.3% below their high point—highlighting the depth of the correction and the slower pace of recovery compared to mainland capitals.

Top-performing suburbs are concentrated in outer areas such as Brighton, which posted 1.7% annual growth, while central zones have remained flat or continued to decline.

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 July 2025

Hobart Property Market Trends

Hobart’s current market conditions reflect a cooling phase that hasn’t yet turned into a full rebound:

• Rental growth is modest: House rents grew 2.9% annually, while unit rents were up 3.5%—both below the national capital average.
• Gross rental yields are at 4.0%, offering reasonable returns but not enough to drive strong investor interest.
• Listings have normalized, with no significant shortages or oversupply, keeping price movements muted.

Local demand remains soft, with fewer interstate buyers compared to the COVID boom years. Investor activity is also limited, given stronger growth opportunities in other cities.

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 is cautiously stable, though not yet optimistic:

• Falling interest rates may help lift buyer sentiment slightly, especially for upgraders or returning investors.
• However, economic fundamentals remain weak, with low population growth, limited new infrastructure, and stretched affordability.
• Without a major economic trigger, Hobart is unlikely to return to its previous growth rates in the near term.

Price stability is expected through late 2025, with only mild upward pressure and limited external demand.

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 property market is in a holding pattern. After a deep correction, the city is seeing some signs of bottoming out, but not enough momentum to spark a genuine recovery.

For now, Hobart represents a slower-moving, lower-volatility market, offering moderate yields and steady, if subdued, conditions. Investors and buyers may find value, but should temper expectations around short-term capital growth.

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