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

Hobart has become one of Australia’s most resilient capital-city markets. While the national housing downturn widened in July, dwelling values still edged 0.1% higher, lifting quarterly growth to 1.4% and annual growth to 9.3%. The median dwelling value sits at $756,951, with total returns reaching 14.1%. Yet the recovery remains measured rather than overheated, as values are still 0.7% below their March 2022 peak. For homeowners and sellers, that combination matters: prices are rising, rental conditions remain tight, and demand is holding up better than in several larger capitals. The sections below unpack the growth pattern, the market’s strongest trends and the likely direction from here.

Hobart Property Price Growth

How far has Hobart’s recovery travelled? Dwelling values rose 0.1% in July, 1.4% over the quarter and 9.3% across the year, taking the median value to $756,951. Year-to-date growth is 4.5%, while the annual total return, including rents, reached 14.1%. Houses slightly outperformed units, with house values up 0.2% for the month and 9.5% annually, compared with a 0.2% monthly fall and 8.1% annual rise for units. Median house values reached $805,165, while units averaged $587,863. Despite the recent lift, the market remains 0.7% below its March 2022 peak, showing that current growth partly reflects a recovery from the earlier downturn. Five-year growth is more modest at 14.4%, while values have risen 94.4% over ten years.

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.

Cotality Home Value Index, Released on 3rd August 2026

Hobart Property Market Trends

A split market is taking shape beneath Hobart’s headline growth. Houses are showing slightly stronger momentum than units, while gross yields remain attractive at 4.2% for houses and 4.8% for units. Rental demand is also firm, with annual rent growth running at about 8.0%, including 8.3% for houses and 6.9% for units. Performance varies sharply by area: Hobart North West recorded 15.3% annual value growth, Sorell-Dodges Ferry 15.0% and Brighton 11.8%, compared with 4.1% in Inner Hobart. This suggests affordability and outer-area demand are supporting the strongest gains. Sellers still need to price carefully because broader buyer confidence and borrowing capacity remain under pressure.

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

Hobart Property Market Forecast

Momentum is likely to cool before it disappears. Hobart’s 0.1% July increase, following 1.4% quarterly growth, indicates that the pace of appreciation is moderating. Higher mortgage costs, stretched household budgets and cautious buyer sentiment should limit further acceleration. At the same time, tight rental conditions, a 4.3% gross dwelling yield, constrained housing construction and fewer vendors listing during weaker conditions should support prices. The most likely near-term outcome is modest, uneven growth, with affordable suburbs and well-presented homes better positioned than expensive or poorly priced properties.

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.

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Conclusion

Hobart’s market is no longer defined by the sharp correction that followed its pandemic-era boom. Values are rebuilding, but the recovery is spreading unevenly, with stronger gains in more affordable outer areas than in the inner city. Rising rents and limited housing supply are helping maintain price support, even as higher borrowing costs keep buyers selective. For homeowners considering a sale, success will depend less on broad market momentum and more on suburb-level demand, presentation and realistic pricing. Hobart is recovering, but it is doing so on its own terms.

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