The Hobart property market continues to attract investors looking for a balance between rental yield and capital growth. According to recent PropTrack data, several suburbs across Southern Tasmania are delivering strong returns, making them some of the best suburbs for investment in Hobart right now.
At Southern Horizons Property, we specialise in Hobart property management and work closely with landlords to help them understand where the strongest opportunities are, how to maximise rental returns, and how to reduce vacancy risk. Here’s a breakdown of the suburbs currently performing well for both houses and units.
Hobart Suburbs Leading the Way for Houses
When it comes to houses, affordability combined with consistent demand has placed several northern and eastern shore suburbs at the top of the list.
Top suburbs for houses include:
Berriedale – Median price ~$590,000 | Rental yield 5.1% | 6% annual growth | 14 days on market
Margate – Median price ~$869,000 | 15% annual growth | 4.0% yield | 13 days on market
West Moonah – Median price ~$656,000 | Yield 4.7% | 6% growth | 16 days on market
Dodges Ferry – Median price ~$728,000 | 21% growth | 4.1% yield | 16 days on market
Chigwell – Median price ~$477,000 | 5.6% yield | 5% growth | 19 days on market
Mornington – Median price ~$608,000 | 5.1% yield | 4% growth | 16 days on market
Moonah – Median price ~$635,000 | 4.6% yield | 4% growth | 15 days on market
Lindisfarne – Median price ~$785,000 | 4.2% yield | 6% growth | 18 days on market
Lutana – Median price ~$615,000 | 4.8% yield | 2% growth | 16 days on market
Claremont – Median price ~$554,000 | 5.0% yield | 4% growth | 18 days on market
These suburbs are especially appealing to investors because they combine affordable entry prices with Hobart rental yields close to or above 5%, particularly in the Glenorchy municipality (Berriedale, Chigwell, Claremont, and Lutana).
Best Hobart Suburbs for Units
Units are performing strongly too, offering lower entry prices compared to houses and appealing to tenants seeking affordable rental options close to the city.
Top suburbs for units include:
Claremont – Median price ~$459,000 | 5.2% yield | 4% growth | 15 days on market
New Town – Median price ~$500,000 | 5.1% yield | 10% growth | 15 days on market
Howrah – Median price ~$626,000 | 4.7% yield | 4% growth | 13 days on market
Blackmans Bay – Median price ~$620,000 | 4.5% yield | 2% growth | 10 days on market
Kingston – Median price ~$595,000 | 4.6% yield | 2% growth | 13 days on market
Suburbs like Claremont and New Town are particularly notable, delivering strong yields around 5% and relatively quick leasing times — making them attractive for investors seeking consistent income.
What This Means for Hobart Investors
The data highlights several important trends:
Affordable suburbs under $600,000 continue to deliver competitive Hobart rental yields around 5%.
Growth areas such as Margate and Dodges Ferry are showing significant capital growth potential, appealing to long-term investors.
Low vacancy rates, reflected in quick leasing times, remain a key factor in securing stable income from rental properties.
These results suggest that Hobart’s northern suburbs, particularly those within Glenorchy, remain hotspots for investors balancing yield with affordability, while areas such as Margate and Dodges Ferry offer opportunities for capital growth.
The Bottom Line
The best suburbs for investment in Hobart right now are those that combine affordable purchase prices, solid rental yields, and low vacancy rates. For many investors, this means considering properties in Berriedale, Claremont, and Chigwell, while also keeping an eye on growth suburbs like Margate and Dodges Ferry.
At Southern Horizons Property, our team of expert property managers in Southern Tasmania help landlords make the most of these opportunities by ensuring strong rental returns, efficient tenant placement, and proactive property care. Whether you already own a rental in Hobart or are exploring new investments, the right property management strategy is key to unlocking long-term success.
Join The Discussion