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

Hobart’s housing market has become one of Australia’s quiet contrarians, holding close to steady while most capitals moved deeper into decline. Dwelling values remain 8.1% higher than a year ago, giving owners a useful equity buffer even as momentum cools.

For homeowners and sellers, that mix of resilience and restraint matters. The market is no longer racing ahead, but neither is it surrendering earlier gains quickly. Balance now defines the outlook, with property type, location and realistic pricing likely to shape results as spring unfolds.

Key Takeaways

• 8.1% annual growth leaves Hobart homeowners with a valuable equity buffer despite recent weakness.
• Mild correction: Dwelling values slipped 0.2% over the quarter and remain 1.1% below their peak.
• Units outperform: Units gained 0.9% in August while house values declined 0.4%.
• Buyers have leverage: Higher stock levels, longer selling times and weak clearance rates support negotiation.
• Balanced outlook: Softer demand points to further easing, but limited new housing supply should contain the decline.

Property Price Growth

Momentum has turned softer. Hobart dwelling values declined 0.2% in August and across the three months to August. Even so, values remained 4.2% higher year to date and 8.1% above August 2025, showing how earlier gains cushion the easing.

The property type split is striking. Houses fell 0.4% monthly and 0.5% quarterly, yet rose 7.9% annually to a $798,156 median. Units gained 0.9% monthly and 1.0% quarterly, taking annual growth to 8.7% and the median to $599,373.

Longer-term results are substantial but uneven: values are 11.5% higher over five years and 93.5% over ten. Across Greater Hobart, annual growth ranged from 13.9% in Hobart North West to 1.7% in Hobart Inner, highlighting pronounced local variation.

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

Market activity is increasingly tilted towards buyers. Across capitals, advertised listings were 24% higher than a year earlier and 8% above the five-year average, despite fewer fresh listings. Stock is accumulating as homes take longer to sell, discounts widen and clearance rates remain below 50%. For Hobart sellers, execution matters when purchasers have more choice and less urgency.

Rental fundamentals offer a counterweight. Hobart house rents rose 8.5% over the year and unit rents 6.0%, supporting a 4.4% gross dwelling yield. That return exceeds the larger east coast capitals and may preserve investor interest, although elevated financing costs mean rental income may not offset holding expenses and affordability may limit further rent increases.

Property Market Forecast

Near-term conditions point to gentle easing rather than a sharp reversal. Values are likely to remain flat to modestly lower through spring as high mortgage rates, affordability constraints and weak confidence suppress demand.

Downside risks include a further rate rise, falling real wages, softer labour conditions and normalised population growth. Hobart’s mild 0.2% quarterly decline suggests the correction remains contained, but sellers should not equate resilience with quick sales.

Limited new supply, low unemployment and first-home buyer support should place a floor under demand, particularly at affordable price points. The most defensible forecast is measured softness rather than a deeper correction, with results increasingly shaped by property quality, location and vendor expectations.

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

In Hobart, the advantage has shifted from momentum to precision. Owners retain a meaningful equity cushion, while restrained demand and wider buyer choice require sellers to compete carefully. Limited new housing supply should contain downside risk, but success will depend on reading the immediate neighbourhood, setting an evidence-based price and responding decisively when genuine interest emerges.