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

In 2024, Hobart’s property market recorded a modest decline, with home values decreasing by -0.6% annually, reflecting ongoing affordability pressures and subdued demand. The median dwelling value stood at $651,043, indicating a slight softening compared to other capitals.

Hobart Property Price Growth

While annual price growth was negative at -0.6%, this decline was comparatively moderate. Within Hobart’s regions, Sorell – Dodges Ferry experienced the highest growth of 2.9%, while areas such as Hobart Inner (-1.4%) and Hobart North East (-1.5%) saw declines, showcasing the variability in performance across local submarkets.

CoreLogic Home Value Index

CoreLogic Home Value Index, Released on 1st January 2025

Hobart Property Market Trends

Hobart’s rental market rebounded strongly, with house rents increasing 6.4% in 2024 after a decline in 2023. This demonstrates renewed demand in the rental sector, driven by local migration trends and tightening supply in key regions. Gross rental yields in Hobart also remained competitive at 4.4%, outperforming several other capital cities.

Change in dwelling values over key time periods

Hobart Property Market Forecast

Hobart’s housing market faces a mixed outlook for 2025. Subdued affordability and lower migration rates may temper demand. However, potential reductions in interest rates and stabilization in rents could provide a floor for housing values. Any rebound will likely depend on broader economic factors, including interest rate changes and local housing policy initiatives.

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

While Hobart’s property market declined in 2024, the impacts were less severe than other weaker-performing markets like Melbourne. The rental market showed strength, and Hobart remains relatively affordable compared to other capitals. Future growth hinges on policy and economic adjustments, with moderate optimism for stabilization in 2025.

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