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

Hobart’s housing market continued its modest recovery in 2025, maintaining a steady but subdued pace compared with other capitals. Dwelling values in the city rose 0.3% over October, 0.5% over the quarter, and 2.4% over the past year, bringing the median value to $686,262. While growth remains positive, Hobart is one of the slowest-growing capital markets, suggesting a period of stabilization after previous declines.

Market Highlights

• Hobart’s dwelling values rose 0.3% in October and 2.4% over the past year, bringing the median value to $686,262.
• The city’s recovery remains subdued, with prices still 8.9% below their March 2022 peak despite a 28.2% gain over five years.
• Growth since the February rate cuts has been modest at 1.8%, reflecting a stable but restrained market.
• House values grew 2.4% annually to $735,326, while unit values rose 2.6% to $558,932.
• Rents climbed 6.9% year-on-year, one of the fastest among capitals, pushing yields to 4.4% and supporting investor interest.
• The strongest-performing subregions were Hobart North West (+5.0%) and Hobart North East (+3.9%), while Sorell–Dodges Ferry edged slightly lower (-0.8%).
• Market conditions reflect tight supply and steady demand, with limited new housing construction likely to maintain mild upward pressure on prices.
• Forecasts point to steady, modest growth into 2026, supported by stable fundamentals but tempered by affordability challenges and cautious sentiment.
• Overall, Hobart’s housing market remains resilient but restrained, balancing gentle recovery with economic headwinds.

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

Over the longer term, Hobart’s home values are still 8.9% below their March 2022 peak, despite a cumulative 28.2% increase over the past five years. Since the national rate cut cycle began in February 2025, Hobart values have climbed 1.8%, indicating a restrained but consistent improvement. Houses grew 2.4% annually, with a median of $735,326, while units rose 2.6% to $558,932. Total annual returns reached 6.7%, supported partly by rental performance.

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.

Hobart Property Market Trends

Rental conditions in Hobart strengthened notably, with rents up 6.9% annually, among the faster-growing rental markets in Australia. Gross rental yields averaged 4.4%, slightly above the combined capital average, reflecting better returns for investors despite limited price acceleration. Local suburbs saw mild variation in performance: Hobart North West led growth at 5.0%, followed by Hobart North East at 3.9%, and South and West Hobart at 3.0%. The Inner Hobart area remained stable, and Sorell–Dodges Ferry recorded a minor 0.8% decline, hinting at patchy local dynamics.

The table outlines CoreLogic’s Home Value Index as of 3rd November 2025, showing peak declines, five-year growth, and changes since the first rate cut in February.

Hobart Property Market Forecast

Looking ahead, Hobart’s housing market is likely to remain balanced but sensitive to national shifts in interest rates and affordability. With supply levels low and demand steady, conditions may support continued mild gains into 2026. However, affordability challenges and weaker consumer sentiment could temper momentum. The broader environment of limited new housing supply and constrained building activity may help prevent any major downturn, keeping Hobart’s trajectory modestly positive.

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.

Conclusion

Hobart’s housing sector is moving through a phase of slow and steady recovery. Price growth is positive but muted compared with mainland capitals. Rental markets remain a bright spot, offering solid yields and consistent demand. Overall, Hobart’s property market appears stable rather than booming, reflecting a mature stage in the post-rate-cut rebound cycle, with a cautious outlook for the year ahead.

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