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

Hobart continues to demonstrate resilience within Australia’s capital city housing markets. While national trends show slowing growth, Hobart remains in positive territory with consistent price appreciation across recent months. Despite broader economic pressures, the city has avoided the downturn seen in areas like Melbourne and Canberra.

Hobart Property Price Growth

As of May 2025:

• Monthly change: +0.6%
• Quarterly change: +0.9%
• Annual change: +3.6%
• Total return (includes rental income): +7.0%
• Median dwelling value: $675,770.

Although the annual growth is modest compared to faster-moving markets like Perth, it marks a notable improvement from earlier stagnation, especially in the second half of 2024.

CoreLogic Home Value Index

CoreLogic Home Value Index, Released on 2nd June 2025

Hobart Property Market Trends

• Hobart’s housing values bottomed earlier than many capitals, with a -10.5% fall from peak, but have since clawed back some ground.
• The pace of change across Hobart’s suburbs varies:
  • North East Hobart saw +4.7% annual growth
  • Brighton grew by 3.4%, while
  • South and West Hobart was up just 1.3%.
• Rents are also rising:
  • Annual change in house rents: +4.2%
  • Units: +7.1%, one of the highest increases among capitals.
• Gross rental yield stands at 4.3%, placing Hobart among the stronger capital city performers for investor returns.

Change in dwelling values over key time periods

Hobart Property Market Forecast

Looking ahead, several factors point to moderate upside potential:

• Interest rates are expected to ease, which may stimulate buyer activity across smaller capitals like Hobart.
• The report notes that “more expensive markets have started to accelerate off the back of rate cuts,” a pattern that may soon influence Hobart as well.
• While affordability remains tight, Hobart’s smaller scale and lower price base compared to larger cities could make it more attractive to interstate buyers and investors seeking yield.

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 on a stable upward trajectory. Growth is not explosive, but it is steady and balanced, supported by healthy rental yields and recovering dwelling values. With a 3.6% annual rise and positive rental performance, Hobart stands out as one of the more quietly resilient capital markets in 2025. While not immune to national pressures, its size, relative affordability, and improving returns keep it on solid ground.

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