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

Hobart’s housing market is experiencing notable weakness compared to other Australian capitals. While most cities are recording steady gains, Hobart stands out for its ongoing softness. The city’s values remain 10.4% below their peak, reflecting a long-term decline in momentum.

Market Highlights

• Dwelling values fell 0.6% in August and are down 0.2% over the quarter.
• Over the past year, prices dropped 2.2%, with values still 10.4% below peak.
• Median dwelling value: $636,315, keeping Hobart among the more affordable capitals.
• Rental market stronger: house rents up 6.1%, unit rents up 6.7% year-on-year.
• Gross rental yields at 4.4%, offering investors relatively solid returns.
• Overall trend: prices subdued, but rentals showing resilience, hinting at potential longer-term stability.

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

According to the Home Value Index table on page 1, Hobart’s dwelling values fell 0.6% in August and are down 0.2% over the quarter. Over the past 12 months, values have slipped by 2.2%. The city’s median dwelling value now sits at $636,315, making it one of the more affordable capital markets.

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

• Rolling trends: Hobart is the only capital showing negative growth in the three months to August 2025, down 0.6%.
• Rental market: House rents rose by 6.1% over the year, while unit rents surged 6.7%. Despite falling property prices, Hobart’s rental market is strengthening, suggesting a mismatch between investor and buyer activity.
• Regional contrast: While Hobart is weak, some areas in regional Tasmania (such as Burnie-Ulverstone and Devonport) are showing annual dwelling value growth above 10%, highlighting divergence between the capital and regional markets.

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

Hobart Property Market Forecast

The broader national report suggests ongoing housing demand supported by strong household sentiment and low stock levels (page 4). However, Hobart may continue to underperform unless affordability pressures ease. With lending constraints and subdued population growth locally, recovery could be slower than in other capitals. Still, the city’s improving rental yields (4.4% gross yield for dwellings, page 3) could attract more investors over time.

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 remains in a weak position relative to other capital cities. Prices have continued to decline modestly, leaving values well below peak levels, even as national markets rise. The rental sector, however, shows resilience with solid rent increases, offering some relief for investors. Looking forward, Hobart’s housing outlook depends on whether affordability and supply constraints can be balanced against its improving rental appeal. For now, the market is subdued, but the stabilising rental environment may provide a platform for gradual recovery.

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