As we move into the final quarter of 2025, the Hobart property market is presenting a fascinating and contrasting picture.While property sales prices are experiencing a slight correction, the rental market is booming, creating distinct opportunities for both homebuyers and investors. Let’s take a closer look at the data driving these trends.
Hobart Property Market Update (Oct 2025): Price Dip Creates Investor Opportunity
Sales Price Trends: A Window of Opportunity for Buyers
Compared to other Australian capital cities, Hobart’s price growth has been more subdued. However, this presents a silver lining for those looking to enter the market.
- Slight Price Adjustments: In the last month, dwelling values across the city dipped by 0.6%, contributing to a 2.2% decline over the past year. Crucially, property values in Hobart are currently 10.4% below their previous peak.
- Attractive Median Prices: This market correction has made Hobart one of the most affordable capital cities. The current median dwelling value sits at $636,315. The breakdown is as follows:
- Median House Value: Approximately $714,691
- Median Unit Value: Approximately $552,352
| City / Property Type | Month | Quarter | YTD | Annual | Total Return | Gross Yield | Median Value |
|---|---|---|---|---|---|---|---|
| Hobart | 0.1% | 0.1% | 2.3% | 2.7% | 7.1% | 4.4% | $683,390 |
| Houses | 0.0% | 0.0% | 2.1% | 2.8% | 7.1% | 4.3% | $729,091 |
| Units | 0.6% | 0.4% | 2.8% | 2.3% | 7.2% | 4.8% | $549,901 |
CoreLogic Home Value Index, Released on 1st October 2025
This affordability opens the door for buyers who may be priced out of larger, more expensive markets.
The Rental Market: An Unmissable Bright Spot
In stark contrast to sales prices, Hobart’s rental market is a hive of activity and a major drawcard for investors.
- Impressive Rental Growth: Rents have soared over the past year, with house rents increasing by 6.1% and unit rents showing even stronger growth at 6.7%.
- High Gross Rental Yields: With an average gross rental yield of 4.4%, Hobart offers investors a strong and stable cash flow potential that outpaces many other capital cities.
- Low Supply, High Demand: A significant drop in the number of properties available for both sale and rent has created a highly competitive environment for tenants. For investors, this means minimal vacancy periods and the ability to secure quality tenants quickly.
Hobart Market Outlook: Who Should Act Now?
Hobart’s unique market conditions offer advantages to different groups:
- For Homebuyers: This is an ideal time to buy. Softer prices and less competition give you more breathing room to find the right property and negotiate a favorable price.
- For Investors: The combination of more affordable entry prices and a booming rental market with high yields is the perfect recipe for a successful long-term investment. Those focused on cash flow will find Hobart particularly appealing right now.
Table 1: Property Value Forecast (to June 2027)
| City | Median Price* (Houses) |
Median Price* (Units) |
Total Price** (%) Growth (Houses) |
Total Price** (%) Growth (Units) |
|---|---|---|---|---|
| Sydney | $1.93M | $1.09M | 18% | 22% |
| Melbourne | $1.28M | $0.78M | 21% | 20% |
| Brisbane | $1.21M | $0.71M | 19% | 23% |
| Adelaide | $0.95M | $0.69M | 16% | 18% |
| Perth | $1.05M | $0.64M | 30% | 30% |
| Canberra | $1.17M | $0.75M | 19% | 20% |
| Hobart | $0.86M | $0.71M | 13% | 16% |
| Darwin | $0.70M | $0.46M | 24% | 26% |
| Combined Capitals | $1.34M | $0.87M | 20% | 21% |
* By June 2027 ** Over 3 years; Source: Oxford Economics, Pricefinder
Home Value Changes (as of 1st October 2025)
| Region | From Peak | Peak Date | Past 5 Years | Since Feb (1st rate cut) |
|---|---|---|---|---|
| Hobart | -9.5% | Mar 22 | 29.5% | 1.2% |
| Regional TAS | -0.5% | May 22 | 47.4% | 0.9% |
| Combined capitals | <at peak> | <at peak> | 43.2% | 4.5% |
| Combined regional | <at peak> | <at peak> | 59.3% | 4.2% |
| National | <at peak> | <at peak> | 46.8% | 4.4% |
CoreLogic Home Value Index, Released 1st October 2025
Conclusion:
The Hobart property market in late 2025 is defined by two distinct trends: stability and slight declines in sales prices,coupled with powerful growth in the rental sector. The moderation in prices is creating a “buyer’s window,” while the strength of the rental market provides a secure and profitable opportunity for investors.
