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

Hobart’s market is looking steadier than it has for a while. Prices are moving up again, though not at the kind of pace seen in some of the bigger mainland capitals. The latest figures point to a market that’s improving rather than booming: values are still below their last peak, but the gap has narrowed, rental demand is holding up, and some local areas are clearly doing better than others. For homeowners and sellers, it’s a more encouraging picture than the softer conditions seen over the past couple of years.

Key Takeaways

• Hobart dwelling values rose 0.2% in April, with stronger 2.6% quarterly growth and 8.5% annual growth.
• The city’s median dwelling value is now $744,296, with houses at $796,682 and units at $574,548.
• House values are outperforming units over the year, rising 9.1% annually compared with 5.8% for units.
• Hobart remains 2.1% below its March 2022 peak, suggesting values have recovered but have not fully reset to previous highs.
• Rental conditions remain supportive, with annual rent growth of 7.0% for houses and 5.5% for units, alongside a 4.3% gross dwelling yield.
• The strongest local growth was concentrated in areas such as Hobart North West, where dwelling values rose 13.9% annually.

Hobart Property Price Growth

Hobart recorded steady dwelling value growth, rising 0.2% over the month, 2.6% over the quarter, and 8.5% over the past year. This places the city ahead of Sydney and Melbourne on annual growth, but behind the faster-moving capitals such as Perth, Brisbane, Darwin and Adelaide.

The longer-term picture is more moderate. Values are still 2.1% below their March 2022 peak, but Hobart has delivered a 21.7% gain over five years and a much stronger 96.4% rise over ten years. Houses remain the stronger segment, with annual growth of 9.1%, while units increased 5.8% over the year.

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

Momentum is positive, but not uniform across the market. House values rose 3.2% over the quarter, while units slipped 0.2%, suggesting buyer demand is currently more concentrated in detached housing. Even so, units recorded the stronger monthly gain at 0.5%, compared with 0.1% for houses, showing there is still activity in the lower-priced segment.

Rental conditions are also reinforcing market stability. Hobart house rents increased 7.0% annually, while unit rents rose 5.5%, and the city’s gross dwelling yield sits at 4.3%. Within Greater Hobart, the strongest annual dwelling growth was led by Hobart North West at 13.9%, followed by Hobart South and West at 10.5% and Sorell to Dodges Ferry at 10.3%.

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

Hobart Property Market Forecast

The most likely direction is continued moderate growth rather than a sharp acceleration. Hobart’s recent quarterly gain of 2.6% points to improving conditions, but the modest 0.2% monthly increase shows momentum is not as strong as in the fastest-growing capitals. The market is being supported by rental pressure, limited supply, and stronger growth in specific submarkets, while affordability and borrowing constraints remain important limits on demand.

A balanced outlook is warranted. The city’s values are still below the prior peak, which leaves some room for recovery, but broader housing conditions are becoming more cautious as buyer demand softens nationally and interest rate pressures weigh on purchasing power. For sellers, this means well-positioned homes can still attract interest, but pricing strategy and presentation will matter more as buyers remain selective.

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’s housing market is in a steady recovery phase, supported by annual value growth, firm rental demand, and stronger performance across selected suburbs and house markets. Conditions are not running at the pace of Australia’s strongest capitals, but the market is broadly positive, with sellers likely to benefit most where pricing is realistic and local demand remains resilient.

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