Confidence returns to Tasmania’s property market – John McGrath

Hobart’s property market, along with those of Launceston and Devonport, should finally experience some real recovery in 2026, following three difficult years. This recovery first began in 2025 and although moderate, will grow stronger this year, as confidence returns to the Apple Isle’s overall economy.

We take a good look at the positive details shaping Tasmania’s property market in our McGrath Report 2026. For example, also helping the state’s three largest metropolitan property markets is a notable tourism rebound and good public sector investment.

At the same time, Hobart still has some way to go to recover from its March 2022 peak, when median dwelling values reached $731,849 according to then CoreLogic’s Hedonic Home Value Index. This was largely due to a surge in interstate migration, especially from Melbourne.

Yet three years on, and Hobart’s property market is moving forward. Cotality’s first Home Value Index report for 2026 notes the capital city’s median house value is now $768,375 with apartments selling for a median of $566,069. This follows annual uplifts of 6.8% and 6.7% respectively. This is a far cry from Cotality’s December 2024 HVI report when the city’s median values dropped 0.5% to $651,043.