Hobart Property Market – Prices, Trends, Forecast [March 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

• The median dwelling value is $728,815, after a 1.2% lift over the past month and 2.6% over the past quarter.
• Values are up 7.7% year-on-year, indicating a renewed uptrend through early 2026.
• Despite the rebound, the market remains 3.5% below its prior peak (set around March 2022).
• Houses are leading the latest growth, up 1.7% over the month and 8.1% over the year.
• Unit values were weaker short-term, down 0.9% over the month, but still up 5.5% over the year.
• Total return (value change plus rental yield) is 12.2% over the year, with a gross rental yield around 4.3% for dwellings.

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 growth has been steady rather than explosive, with the market up 1.2% in the latest month and 2.6% over the rolling quarter. Over the past year, values are up 7.7%, and total return is 12.2% once rental income is included, showing renewed capital growth alongside still-decent yields.

Longer term, momentum has improved but hasn’t fully recovered to prior highs. Values remain 3.5% below the earlier peak, and since the start of the last rate-hiking phase (May 2022) performance is -3.2%, despite a 25.5% rise over the past five years.

Houses continue to outperform units. House values rose 1.7% over the month, 3.2% over the quarter, and 8.1% over the year, with a median around $779,059, reflecting stronger demand for family homes and land-linked stock.

Units have been patchier. Values fell -0.9% over the month and were flat over the quarter, but are still up 5.5% over the year, with a median around $574,204, suggesting the softness is likely short-term rather than structural.

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 Cotality.

Hobart Property Market Trends

Recent performance suggests demand is holding up best where buyers perceive relative value, while higher price points face tighter borrowing capacity and more cautious sentiment. This typically produces a “two-speed” pattern, with the more affordable end of the market staying more competitive.

Dwelling type trends reinforce that split. Houses rose 1.7% over the month and 3.2% over the quarter (8.1% annually), while units slipped -0.9% over the month, were flat over the quarter, and lifted 5.5% over the year. Rental settings also matter for investor interest, and gross rental yields are higher than many mainland capitals at 4.3% for dwellings (4.2% for houses and 4.8% for units).

The table outlines CoreLogic’s Home Value Index as of 28th February 2026, showing peak declines, five-year growth, and changes since the start of the previous rate hiking cycle in May 2022.

Hobart Property Market Forecast

Looking ahead, growth is most likely to continue, but at a modest, uneven pace rather than a broad surge. Values are still below the prior peak, leaving room to recover, but affordability limits should cap gains unless borrowing conditions improve or supply tightens further.

Houses should keep leading due to strong demand and limited established family stock in key school and lifestyle areas. Units may rebound, but are likely to remain patchy and more dependent on location, building quality, and investor demand, especially where new supply or listings rise.

Firm rents and competitive yields should support prices, though risks run both ways: rate cuts and stronger confidence could extend the upswing, while weaker jobs, higher rates, or more listings could slow it quickly.

Overall, expect results to be driven more by micro-location and price band than a single citywide trend, affordable, high-demand rental suburbs are best placed to outperform, while higher-priced segments stay more sensitive to serviceability and caution.

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 healthier position than it was during the post-2022 slump, with steady monthly gains, solid annual growth, and a median value that remains more accessible than the largest mainland capitals. The fact prices are still below the prior peak frames the current cycle as a recovery rather than a late-stage boom, and that distinction matters for expectations around both risk and upside.

Looking ahead, the city’s performance is likely to be shaped by two competing forces: demand headwinds (rates, serviceability, confidence) and ongoing supply constraints. For buyers and sellers, the practical takeaway is to expect a market that rewards sharp pricing and property selection, with the strongest outcomes more likely where affordability and scarcity intersect, and softer results where borrowing limits are most binding.

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