Investment Property Hobart: 2026 Market Guide

By Mossy Taheri, licensed buyer’s agent · Updated 25 October 2026 · Data to 30 September 2026

Hobart property market at a glance

Hobart is Australia's second-smallest capital and one of its most supply-constrained, hemmed in by the river and the mountain. It boomed between 2016 and 2021, eased as interest rates rose, and has been recovering since. Its median house value is about $790,000, the second-lowest of the capitals after Darwin. The market is shallow, so a handful of sales can move the figures.

Median house value · Cotality, Sep 2026

$790,406

Median unit value · Cotality, Sep 2026

$591,795

House values, past 12 months · Cotality, Sep 2026

+7.0%

Unit values, past 12 months · Cotality, Sep 2026

+6.7%

Gross rental yield, houses · Cotality, Sep 2026

4.3%

Gross rental yield, units · Cotality, Sep 2026

4.8%

Rental vacancy rate · SQM, Sep 2026

0.5%

Houses, 10-year growth · HtAG

7.9% a year

Typical house rent · HtAG

$627 a week

Sources are listed with each figure; see the full list at the end of this guide. HtAG figures cover Greater Hobart (6 council areas), to 30 September 2026.

Hobart property prices and growth

The past year

Cotality's index shows Hobart house values up 7.0% and unit values up 6.7% over the 12 months to September 2026. Dwelling values dipped 1.2% over the September quarter, the smallest fall of any capital that declined.

The long run

Over the longer run, HtAG's data shows typical house values in Greater Hobart growing 3.5% a year over five years and 7.9% a year over 10, a figure boosted by the 2016 to 2021 boom. Units grew 6.7% a year over 10 years. Sorell, Brighton and Glenorchy grew fastest over the decade, at 9% to 10.5% a year for houses, while the City of Hobart grew 5.7% a year.

Past 12 months: Cotality, 12 months to September 2026. Three, five and 10 years: annual compound growth in typical values, HtAG Analytics, to 30 September 2026, averaged across 6 council areas weighted by sales. HtAG’s values are modelled and smoothed, so they react to turning points more slowly than Cotality’s monthly index.

At 7.9% a year, a house worth $500,000 in 2016 would be worth about $1,071,000 today. That’s an average: individual suburbs and properties did much better or worse, and past growth is no guide to the future. Model your own scenarios in the property growth calculator.

Rents, yields and vacancy in Hobart

Hobart rents rose 7.9% over the year to August 2026 (Cotality), faster than their five-year average of about 4.6% a year. A typical house rents for about $627 a week, from around $526 in Brighton to $699 in the City of Hobart. Gross yields are 4.3% for houses and 4.8% for units. Short-stay letting is significant in parts of the inner city, which affects both rental supply and the rules for using a property that way.

Rents: HtAG Analytics typical weekly rent, September 2026, averaged across council areas weighted by rental listings. Gross yield: Cotality, September 2026. Vacancy: SQM Research, September 2026.

Gross yield is a first filter, not the whole story. Test the cash flow of a specific property, after interest, rates, insurance, management and maintenance, in the property cash flow calculator.

Hobart council areas compared

Greater Hobart is made up of six councils. The more affordable northern and eastern councils, Sorell, Brighton and Glenorchy, have grown fastest over 10 years.

HtAG Analytics, typical weekly rents and annual compound growth in typical values, to 30 September 2026. Council figures hide big differences between suburbs, and a dash means there weren’t enough sales for a reliable figure.

Investing in Hobart: what drives the market

Hobart sits on the Derwent River at the foot of kunanyi / Mount Wellington, and its geography shapes the market. Hills, the river and bushland limit how much flat, buildable land is available close to the city, so housing supply in established suburbs is constrained. That scarcity is part of Hobart's appeal to investors, and also why the market can move sharply when demand changes.

Demand comes from a mix of sources: the state public service, the University of Tasmania, the health sector, tourism and hospitality, and Hobart's role as a gateway for Antarctic and Southern Ocean research. The Australian Antarctic Division is based in nearby Kingston. Students, government workers and hospitality staff make up a large part of the rental pool. Hobart is also the gateway for many visitors to Tasmania, which supports hospitality jobs in and around the city. The rental pool is therefore broad, but it is concentrated in a handful of sectors, so we look at which employers sit closest to each property.

Hobart's housing stock is older than most mainland capitals, with many timber homes, Federation and post-war houses, and a limited number of apartments. Older homes can carry character and land value, but also maintenance, heating and insulation costs that affect your returns. We check condition and running costs alongside location and rent.

What to check before you buy in Hobart

• Constrained supply

  Geography limits new land close to the city, which supports established suburbs but also makes the market sensitive to changes in demand.

• Market depth

  A smaller city has fewer buyers and sales, so we check how quickly comparable properties have sold before you commit.

• Condition of older homes

  Building inspections focus on timber condition, roofing, heating and insulation, which affect both maintenance costs and tenant appeal.

• Bushfire-prone land

  Homes near bushland on the hills and fringes can carry bushfire overlays that affect insurance and building work; we check them early.

• Short-stay versus long-term rent

  Tourism drives short-stay demand in some areas, but rules and seasonality apply, so we assess long-term rental demand first.

What to watch in Hobart in 2026 and 2027

• Macquarie Point stadium. Site works have begun on the Macquarie Point stadium, with completion expected around 2031. Large projects can change demand nearby, but timelines in Tasmania have moved before.
• Market depth. Hobart is a small market. Selling can take longer and price swings can be larger than in the bigger capitals.
• Population growth. Tasmania's population is growing slowly, which matters more in a small market. Watch migration and jobs data for signs that demand is holding.
• The 2027 tax changes. From 1 July 2027, net rental losses on established homes bought after 7:30pm AEST on 12 May 2026 can no longer reduce tax on your salary; new builds keep negative gearing. The 50% capital gains discount is also being replaced by indexation for gains after that date. Read what the negative gearing reform means.

Buying costs for investors in Tasmania

Stamp duty is the biggest upfront cost after your deposit. At 2026-27 general rates, transfer duty on an investment property in Tasmania is:

Add legal and conveyancing fees, building and pest inspections, loan costs and lenders mortgage insurance if you borrow more than 80%. Land tax may apply each year depending on the land value you hold in Tasmania. Estimate them in the TAS stamp duty calculator, the purchase cost calculator and the land tax calculator.

Is Hobart a good place to invest in 2026?

Hobart's supply constraints and lifestyle appeal support demand, its rental market is the tightest of the capitals and house yields are higher than in Sydney, Melbourne and Brisbane. But it's a small, shallow market, population growth is modest, and the 10-year numbers owe much to one boom. It can suit investors who want diversification and buy well-located houses, but it carries more risk than the larger capitals and resale can be slower.

We don’t start with a city. We start with your budget, borrowing power and goals, then test Hobart against every market that fits, down to the suburb, street and property. See how we buy in Hobart as a buyers agent, or book a free discovery call.