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

Hobart has moved back into growth mode, but this is a measured recovery rather than a runaway upswing. Dwelling values rose 0.9% in May, gained 2.4% over the quarter and are 9.3% higher over the year, although the market remains 1.4% below its March 2022 peak. Conditions lean toward sellers, particularly in well-performing suburbs, but not overwhelmingly so. Higher interest rates, stretched affordability, cautious sentiment and inflation pressure are still limiting buyer capacity nationally, while tight rental conditions and constrained housing supply continue to support demand. The result is a market with improving momentum, but one that still requires careful pricing and realistic expectations.

Key Takeaways

• Hobart dwelling values increased 9.3% over the year, showing a clear recovery from earlier weakness.
• Monthly growth remains positive at 0.9%, with the quarterly gain sitting at 2.4%.
• The market is still 1.4% below its March 2022 peak, so momentum has improved but has not fully reset to a new high.
• Houses are slightly stronger over the year, rising 9.7% compared with 7.2% for units.
• Rental conditions remain supportive, with house rents up 8.5% annually and a gross dwelling yield of 4.3%.

Hobart Property Price Growth

Price growth remains solid, although the pace is more measured than in Australia’s strongest capital-city markets. Hobart dwelling values increased 0.9% in May and 2.4% over the quarter, taking annual growth to 9.3% and total return to 14.0%. The median dwelling value now sits at $752,398, with houses at $807,533 and units at $580,265.

A useful signal is that Hobart is still 1.4% below its previous peak from March 2022, even after recent gains. That suggests the market has recovered meaningful ground but has not returned to a fully reheated cycle. Over the longer term, values are 19.5% higher across five years and 95.6% higher across 10 years, showing that the city’s longer-run growth story remains intact despite the post-peak adjustment.

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

Rather than one broad surge, the pattern across Greater Hobart is uneven but constructive. Hobart North West recorded the strongest annual dwelling value growth at 14.9%, followed by Sorell Dodges Ferry at 11.6%, Hobart South and West at 10.8%, and Brighton at 10.1%. Inner Hobart was more subdued at 4.4%, showing that demand is still more selective across price points and locations.

Rental performance is also helping to underpin the market. Gross dwelling yields are sitting at 4.3%, above the combined capital city average of 3.5%, while house rents have risen 8.5% annually and unit rents 5.9%. That rental support matters because it strengthens the investment case, even as higher mortgage rates and ownership costs continue to test investor returns.

Here’s how housing values are tracking across different parts of the market.

Hobart Property Market Forecast

The forward path points to further moderate growth, not a sharp breakout. Hobart’s quarterly gain of 2.4%, annual rise of 9.3% and positive rental indicators all suggest there is still enough demand to support prices, particularly where affordability, lifestyle appeal and rental demand overlap. The fact that the market remains below its previous peak also leaves room for recovery, provided buyer confidence does not weaken materially.

Still, the national backdrop argues for discipline. Higher interest rates, inflation pressure, weaker sentiment and tighter borrowing capacity are expected to keep a lid on aggressive price growth, while constrained new housing supply and population-driven rental demand provide a counterweight. On balance, the outlook is positive, but the next phase is likely to be steadier and more segmented than the headline growth rate alone suggests.

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

For homeowners and sellers, Hobart is in a healthier position than it was during its softer phase, with annual growth, rental demand, and localised suburb strength all working in its favour. The market’s balance is important, though: values are rising, but affordability and confidence pressures still matter.

With total returns at 14.0%, Hobart remains a constructive selling environment, especially for owners who price with the current market rather than yesterday’s peak in mind.

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