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

Hobart’s housing market has continued to lift into the start of 2026, supported by constrained listings and steady buyer demand. Values are rising at a measured pace compared with the faster-growing mainland capitals, but the city is still delivering positive momentum and improving sentiment for sellers.

The city’s median dwelling value sits at $722,339, with growth holding up despite affordability pressures and higher borrowing costs. While Hobart remains below its prior peak, recent conditions point to a market that is rebuilding gradually rather than surging, with price-sensitive demand continuing to shape where competition is strongest.

Highlights

• Hobart’s median dwelling value is $722,339, reflecting a steadily improving market.
• Dwelling values rose 0.5% over the past month and 2.6% over the past quarter.
• Annual dwelling value growth is running at 7.0%, indicating moderate but consistent gains.
• Hobart remains 5.1% below its previous peak, showing further room for recovery.
• Rental conditions remain tight, with house rents up 6.8% and unit rents up 7.6% over the past year.
• Gross rental yields around 4.3% suggest income remains supportive for investors despite rising values.

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 home values have been trending upward, with a 0.5% monthly lift and a 2.6% rise over the past quarter. Over the year, values are up 7.0%, reinforcing that the market is in a growth phase, albeit at a calmer pace than some other capitals.

Even so, price levels are still recovering relative to the earlier cycle. Hobart remains 5.1% below its previous peak, which helps explain why growth can persist without the market feeling overheated. This also signals that much of the recent activity is catch-up rather than a new boom.

Over a longer horizon, the city has still delivered meaningful gains, with the past five years showing solid cumulative growth. That longer-term uplift, combined with improving short-term momentum, positions Hobart as a steady performer where gains are being built through consistency rather than bursts of rapid appreciation.

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 in Hobart continue to be shaped by limited supply and resilient demand. When listings are thin, even moderate buyer activity can translate into upward pressure on values, particularly in more affordable segments where competition tends to concentrate.

Within Greater Hobart, performance varies by area, with some sub-regions posting stronger annual growth than others. This points to buyers being selective and value-driven, rewarding pockets that offer relative affordability, lifestyle appeal, or stronger local demand fundamentals.

Rental market settings add another layer of support. Annual rent growth remains elevated for both houses and units, and yields around the mid 4% range help keep investment demand engaged. At the same time, rising values can gradually compress yields, so cash-flow focused investors are likely to remain disciplined on entry price and property type.

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

Hobart Property Market Forecast

Hobart is likely to track a path of continued but softer growth through 2026, with affordability constraints and borrowing capacity acting as natural brakes. If interest rates rise further or sentiment weakens, demand is likely to become more cautious, and price growth could slow from recent levels.

That said, a sharp downturn appears less likely while stock levels remain constrained and the labour market stays supportive. Limited new supply and tight rental conditions can keep a floor under prices, even if buyer urgency fades.

Overall, the most plausible outlook is uneven, suburb-by-suburb growth, with the market favouring well-priced, well-located homes. Recovery toward prior peak levels may continue, but the pace is likely to be gradual rather than rapid.

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 is in a constructive phase, with values rising steadily and rentals remaining tight. The market’s current shape is defined by moderate price growth, a recovery that still has room to run, and ongoing competition where affordability is strongest.

Looking ahead, the balance of forces suggests resilience rather than acceleration. Conditions may cool as borrowing constraints bite, but low supply and rental pressure should continue to provide support, leaving Hobart positioned for steady, sustainable gains rather than a volatile cycle.

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