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

Hobart’s housing market is in a gentle upswing. Dwelling values rose 1.2% in November and 4.7% over the year, with a 2.4% gain for the quarter. The median dwelling value is about $703,000, keeping Hobart among the more affordable capital cities. Values remain below their 2022 peak, but most of the earlier downturn has now been recovered.

Market Highlights

• Dwelling values rose 1.2% in November and 4.7% over the year, with a median price of about $703,000.
• Market is in recovery rather than a new boom, with values still around 7% below the 2022 peak despite a near 30% rise over five years.
• Houses are up about 4.6% annually and units about 5.0%, with unit prices lower on average and showing slightly stronger recent momentum.
• Unit rents are up roughly 8.8% a year and house rents about 6.2%, placing Hobart among the strongest capitals for rental growth.
• Gross rental yields sit near 4.3% for dwellings, higher than in the largest mainland cities and appealing for income focused investors.
• Overall outlook is for steady, moderate price gains supported by tight rentals and solid yields, rather than rapid capital growth.

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

Recent price growth has been steady rather than rapid. Quarterly gains of 2.4% follow a softer period in 2023, and the current annual increase of 4.7% places Hobart toward the middle of the capital-city pack. House values are up around 4.6% over the year, while unit values have risen about 5.0%, showing slightly stronger momentum in the attached market. Over the past five years, dwelling values have risen close to 30%, which is solid but no longer outpaces the mainland mid-sized capitals.

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

Market conditions reflect a small city with limited but steady demand. Hobart remains comparatively affordable, which supports interest from both local buyers and interstate lifestyle migrants. Rental markets are tight, with house rents about 6.2% higher over the year and unit rents up around 8.8%. Gross rental yields are attractive by capital-city standards at roughly 4.3% for dwellings, with houses yielding about 4.2% and units about 4.8%. Growth is reasonably broad based, led by areas such as Hobart – North East and Hobart – North West, where annual value gains sit in the mid‑single digits to low double digits.

The table outlines CoreLogic’s Home Value Index as of 1st December 2025, showing peak declines, five-year growth, and changes since the first rate cut in February.

Hobart Property Market Forecast

Looking ahead, Hobart is likely to track a path of moderate, sustainable growth. Stronger rental conditions and relatively high yields provide a supportive backdrop for investors, while entry prices remain lower than in the larger east coast capitals. At the same time, broader headwinds such as higher living costs, borrowing constraints and slower national economic growth are expected to limit the pace of further price gains.

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 market is in a healthy but measured expansion phase, combining modest value growth with strong rents and competitive yields. The city no longer leads the national upswing as it did in earlier cycles, yet it offers a balance of affordability and income that should underpin values over the medium term, provided economic conditions remain stable.

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