After three challenging years following the post-pandemic peak, Hobart’s property market is firmly in recovery mode heading into 2026. Confidence is returning to the Apple Isle, driven by falling interest rates, a surge in infrastructure investment, and some of the tightest rental conditions of any capital city in Australia.
Whether you’re looking to buy, sell, or invest in the Hobart region, here’s what the latest data tells us — and what it means for you.
Key Market Figures at a Glance
According to the latest Cotality (formerly CoreLogic) data, Hobart’s median house value now sits at approximately $768,375, following annual growth of 6.8%. Units have tracked similarly, with a median of $566,069 — up 6.7% year-on-year. This represents a significant shift from December 2024, when the city’s median values dipped 0.5%, signalling that the bottom of the cycle has well and truly passed.
In the broader Hobart metro area, Q4 2025 recorded a median house price of $1,012,500, with unit prices reaching $651,000. Sales volumes also lifted sharply — total house sales rose 37.1% in the same quarter compared with Q4 2024.
“The only way is up” — SQM Research, forecasting up to 7–10% growth for Hobart in 2026 under an optimistic interest rate scenario.
Which Suburbs Are Leading the Charge?
Not all suburbs are created equal. Here’s where the action is across greater Hobart:
- Sandy Bay — Hobart’s premium enclave continues to command prices well above $1.4 million for houses, attracting upsizers and downsizers alike.
- Glenorchy — A strong performer for investors, with a median house price of around $612,500 and solid rental returns driven by its affordability and improving infrastructure.
- Moonah — A growing cultural hub with a median of around $613,500, popular with young professionals and creatives.
- Brighton — One of Tasmania’s fastest-growing suburbs, with a median around $565,000. Its family-friendly community and new housing developments make it attractive for both investors and owner-occupiers.
- Hobart North-West — Consistently topping suburb growth charts, with a median of $568,500 and 5% annual growth.
The Rental Market: Tight Conditions Favour Investors
If there’s one word to describe Hobart’s rental market right now, it’s tight. The city’s vacancy rate hovers around 0.5–0.7% — significantly below the Real Estate Institute of Australia’s healthy benchmark of 3.0%. Rental properties are being snapped up quickly, and landlords are benefiting from intense demand.
Median house rental prices rose 4.8% over the 12 months to Q4 2025, reaching $650 per week. Unit rents have climbed even faster, recording a 9.3% annual increase — the highest of any capital city in Australia. Gross rental yields for dwellings average around 4.3–4.4% citywide, with units achieving up to 4.8%.
What’s Driving the Recovery?
Several powerful factors are fuelling Hobart’s turnaround:
- Interest Rate Cuts — Multiple RBA rate reductions have improved borrowing capacity and buyer confidence across the board.
- Infrastructure Pipeline — Hobart is set to benefit from more than $30 billion in infrastructure investment over the next decade. Most notably, the $1.13 billion Macquarie Point Stadium — a 23,000-seat multi-purpose venue — has received the green light, with construction beginning this year and an expected opening in 2029.
- Supply Constraints — Tasmania is consistently under-delivering on its construction targets. With new dwellings in the pipeline well below current sales volumes, upward pressure on prices is likely to persist.
- Lifestyle Appeal — Tasmania’s relaxed way of life, clean environment, and relative affordability compared to Sydney and Melbourne continues to attract interstate migrants and sea-changers.
2026 Outlook: Steady Growth Ahead
Analysts broadly expect Hobart’s market to transition from stabilisation to steady recovery in 2026. SQM Research is particularly bullish, forecasting growth of 7–10% under an optimistic scenario. More conservative estimates from Westpac and NAB point to gains of 2–2.4%, while KPMG forecasts 5.7% for houses and 5.3% for units.
Total listings across Tasmania dropped approximately 21% year-on-year through 2025, putting a firm floor under prices and favouring sellers and landlords. While Hobart may not match the double-digit booms forecast for Perth or Melbourne, the downside risk is considered minimal.
Median House Value
$768,375
+6.8% annually
Median Unit Value
$566,069
+6.7% annually
Rental Vacancy Rate
0.5–0.7%
Tightest in Australia