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

Hobart barely moved through winter, recording a 0.2% decline that was the mildest among capitals where values fell. This stability places the city between Darwin’s continued growth and the steeper corrections unfolding elsewhere.

The restrained citywide result masks a more complex market. Units were still advancing as houses edged backwards, while local growth varied sharply between outer and inner areas. Property type and location therefore matter more than the headline index alone.

Key Takeaways

• Hobart recorded the mildest decline among falling capitals, with values dropping 0.2% both monthly and over winter.
• Units maintained a 1.0% quarterly gain, while house values fell 0.5%.
• Local outcomes varied sharply, from 13.9% annual growth in Hobart–North West to 1.7% in Hobart Inner.
• House rents grew faster, rising 8.5% annually compared with 6.0% for units.
• Income returns remained competitive, with Hobart’s gross dwelling yield reaching 4.4%.

Property Price Growth

The clearest separation ran between Hobart’s property types: units rose 0.9% in August and 1.0% over the quarter as houses fell 0.4% and 0.5%. Across all dwellings, the 0.2% monthly and quarterly declines left the city 1.1% below its March 2022 peak.

Annual performance remained positive for both property types, with units up 8.7% and houses 7.9%. Their total returns reached 13.6% and 12.9%, respectively. The median dwelling value was $752,397, comprising a $798,156 house median and a $599,373 unit median.

The longer view is less uniform. Dwelling values rose 11.5% over five years and 93.5% over ten. Among the published SA3s, Hobart–North West led at 13.9% annual growth, closely followed by Brighton at 13.1%, whereas Hobart Inner recorded 1.7%. Median values ranged from $656,059 in Brighton to $888,051 in Hobart Inner.

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.

Property Market Trends

Broader selling conditions point to a market with less urgency. Across the combined capitals, advertised stock was 24% above a year earlier, while new listings were 6% lower. Most capitals also recorded longer selling times, larger vendor discounts and auction clearance rates below 50%. These are capital-wide signals, rather than measured Hobart outcomes.

Rental growth remained firmer in houses than units. Hobart house rents rose 8.5% annually, compared with 6.0% for units. Nationally, the vacancy rate increased to 1.9% in August but remained below its pre-COVID decade average, providing broader context for continued rental pressure without describing Hobart’s availability directly.

Returns from leasing reinforce Hobart’s smaller-capital profile. Its 4.4% gross dwelling yield exceeded the combined-capital rate of 3.6%, while houses yielded 4.3% and units 4.7%. Investors nationally are expected to focus more heavily on higher-yield opportunities, increasing the relevance of Hobart’s income performance even as financing costs remain a constraint.

Property Market Forecast

The unit segment offers Hobart a point of resistance as the national housing outlook turns softer. Its current monthly and quarterly growth suggests better near-term footing than houses, but national demand is expected to weaken under rate risk, falling real wages, pessimistic sentiment and normalised population growth. That backdrop makes slower citywide momentum, and possible further mild declines, the more likely near-term path.

Several forces should limit the downside. New housing supply remains insufficient nationally because construction costs and capacity constraints restrict delivery, while relatively low unemployment should reduce widespread repayment distress. Hobart’s 4.4% dwelling yield may also preserve investor relevance as attention shifts towards income. Together, these factors support a measured correction rather than a sharp fall, without removing the demand pressures facing the broader market.

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 (Reviewed September 2026:

• ANZ expects capital-city prices to decline in both 2026 and 2027. ANZ forecast coverage
• CBA expects further national price declines before a modest recovery during 2027. CBA housing outlook
• NAB forecasts lower prices across the eight capital cities in 2026. NAB Housing Monitor
• Westpac’s June forecast anticipates flat prices in 2026 and growth in 2027, although its September update warns of further downside. June Housing Pulse, September housing update

For the remainder of 2026 and into 2027, this means:

• A softer near-term outlook: The bank updates point to continued pressure on property prices, replacing the earlier expectation of broadly rising values. NAB.
• Different conditions between cities: Sydney and Melbourne face the largest forecast declines in CBA’s outlook, although weakness has also spread to Brisbane, Perth and Adelaide. CBA.
• Borrowing costs remain important: The timing and strength of any recovery depend partly on interest rates. CBA’s forecast for modest growth in 2027 assumes rate cuts during that year. CBA.
• More negotiating room for buyers: Westpac reports rising listings and expects buyers to have greater bargaining power in many markets heading into spring. This is an interpretation of market conditions, not a guarantee for individual properties. Westpac.

Conclusion

Hobart’s balance rests on contrasting signals: citywide values edged lower, units advanced and house rents grew firmly. This is neither a uniform downturn nor a broad continuation of growth.

Outer areas also substantially outperformed Hobart Inner, leaving the city’s next phase dependent on property type and location. Hobart shows how a mild headline result can conceal meaningful divisions within a capital market.