Hobart Property Market – Prices, Trends, Forecast [January 2026]

Hobart’s housing market ended 2025 on a firmer footing, continuing its recovery after earlier declines. Dwelling values rose through December, contributing to a solid annual performance and placing Hobart among the stronger mid-sized capital city markets. While growth has moderated compared with peak pandemic-era conditions, demand has remained resilient, supported by constrained supply and relatively affordable price points compared with mainland capitals.

Market Highlights

• Annual dwelling values rose 6.8%, marking a steady recovery rather than a rapid rebound.
• Price momentum improved late in the year, though growth remains below the highs seen earlier in the cycle.
• The median dwelling value sits at $720,341, keeping Hobart more accessible than most mainland capitals.
• Supply constraints continue to underpin prices, limiting downside risk even as buyer caution increases.
• Rental conditions remain tight, supporting investor interest despite some yield compression.
• The market is shifting into a slower growth phase, with stability and resilience taking priority over acceleration.

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

Hobart recorded a 6.8% increase in dwelling values over the year to December 2025, with values rising 0.9% over the month and 3.6% over the December quarter. The median dwelling value reached $720,341, reflecting steady gains rather than rapid acceleration. Despite this improvement, values remain around 5% below the city’s previous peak in early 2022, highlighting that Hobart is still in a catch-up phase rather than at new highs.

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

Growth in Hobart has been more balanced than in larger capitals, with less drag from premium segments and continued interest in lower to mid-priced housing. Rental conditions remain tight, supporting investor interest, although rising values have gradually compressed yields. The pace of growth has eased slightly toward the end of the year, consistent with broader national trends as affordability pressures and interest rate uncertainty temper buyer confidence.

The table outlines CoreLogic’s Home Value Index as of 2nd January 2026, showing peak declines, five-year growth, and changes since the first rate cut in February.

Hobart Property Market Forecast

Looking ahead, Hobart is expected to see more modest growth through 2026. Elevated interest rates, cost-of-living pressures, and cautious lending settings are likely to limit how quickly prices can rise. However, ongoing supply constraints and steady underlying demand should help prevent a sharp correction, pointing to a period of slower, uneven gains rather than a downturn.

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 enters 2026 in a position of relative stability. Price growth has been positive but controlled, the market has not yet returned to its prior peak, and fundamentals remain supportive. While headwinds are building, limited supply and sustained demand suggest Hobart’s housing market will remain resilient, with gradual growth rather than volatility defining the year ahead.

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