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

Hobart’s property market is sending an unusually mixed signal: its 3.0% vacancy rate is the highest among the capitals, yet rental growth remains firm. That contrast matters because it points to a market where rental availability, rents and property values are moving on different tracks, making the city’s current position more nuanced than a simple recovery-or-decline story.

Key Takeaways

• Hobart’s rental contrast combines a 3.0% vacancy rate with annual house-rent growth of 8.7%.
• Recent value momentum has softened, with dwelling values down 0.5% in September and 1.2% over the quarter, while remaining 7.0% higher annually.
• Property types are tracking closely on annual values, with houses up 7.0% and units up 6.7%.
• Local variation is pronounced, with Hobart – North West and Brighton recording much stronger annual growth than Hobart Inner.
• The near-term direction points to cautious softening, tempered by broader supply constraints rather than a sharp citywide downturn.

Property Price Growth

Nearly four and a half years after its March 2022 record peak, Hobart dwelling values remained 2.0% below that high in September 2026. The market nevertheless recorded annual growth of 7.0% and year-to-date growth of 3.4%. More recently, values fell 0.5% in September and 1.2% over the quarter. Over longer horizons, values were 8.4% higher over five years and 90.2% over a decade.

Houses and units both fell 1.2% over the quarter, while annual gains were 7.0% and 6.7% respectively. Estimated median values stood at $790,406 for houses, $591,795 for units and $741,496 across dwellings. Greater Hobart’s published local results ranged from 12.8% annual growth in Hobart – North West and 12.6% in Brighton to 1.5% 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 capital-city selling conditions are becoming less urgent. Across the combined capitals, new listings were 9.2% lower than a year earlier, yet total advertised inventory was 23.1% higher because sales were falling faster than fresh stock entered the market. Capital-city homes collectively took a median 39 days to sell, up from 23 days a year earlier, giving buyers more choice across the wider market.

Hobart’s rental market carries its own split. Vacancy was 3.0% in September, the highest among the capitals, while annual house rents rose 8.7% and unit rents 5.0%. Gross rental yields were 4.3% for houses and 4.8% for units, with dwellings at 4.4%. Nationally, elevated interest, insurance, maintenance and strata costs continue to limit the cash flow implied by gross yields.

Property Market Forecast

Recent quarterly weakness suggests Hobart values are more likely to ease further than rebound quickly, with dwellings down 1.2% over the three months to September. The rental picture adds complexity rather than determining the price outlook. Nationally, higher mortgage costs, weaker borrowing capacity and subdued confidence continue to restrain housing demand. Limited new housing supply and relatively low unemployment provide counterweights that should reduce the risk of a sharper correction. The near-term direction therefore favours gradual value declines, with outcomes likely to remain uneven across property types and local areas.

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 is moving through a softer price phase without uniform weakness across every measure. Rental vacancy is high by capital-city standards, house rents are still rising and local value growth varies widely. That combination points to a market where adjustment is occurring unevenly rather than through a single citywide shift.