Hobart Spring 2026 Property Market Report

Hobart's property market enters Spring 2026 with strong momentum, supported by rising sales activity, accelerating price growth and ongoing rental undersupply. Properties are selling significantly faster than a year ago, while annual dwelling values continue to outperform many larger capital cities. Tight rental conditions and constrained housing delivery are also contributing to continued upward pressure across the market.

Market snapshot

Hobart recorded 3,986 residential property sales in the year to Q2 2026, representing annual growth of 14% and exceeding the five-year average. Homes are selling in an average of 18 days, 13 days faster than a year ago, highlighting strong buyer demand. New listings fell 9.6% year-on-year, while total listings remained above year-ago levels, helping to provide buyers with more choice despite ongoing supply constraints.

Property prices

Hobart residential property values increased 11.0% over the year to Q2 2026, taking the median residential property value to $776,300. Prices also rose 1.5% during the most recent quarter, reflecting improving market conditions and renewed buyer confidence. Looking ahead, McGrath Research forecasts Hobart residential property prices will increase by 2% by the end of 2026, followed by a further 1% rise in 2027.

Rental market

Rental conditions remain extremely tight across Hobart, with vacancy rates recorded at just 1.1% at the end of Q2 2026, well below the level considered a balanced market. Median weekly rents increased 8.3% over the past year to $585 per week, driven by limited rental stock and continued tenant demand. McGrath Research forecasts rents will rise by a further 7% by the end of 2026 and 4% in 2027.

Economic drivers

Housing supply remains a key challenge for Hobart. New home completions across Tasmania declined 13.1% over the past year despite a significant increase in building approvals. Construction costs rose 3.5% during 2025, while population growth, although modest at 0.2%, continues to contribute to housing demand. Combined with limited rental availability, these factors are helping to support both property values and rental growth.

Outlook for Hobart property

Hobart's property market is expected to remain resilient through the remainder of 2026. McGrath Research forecasts further growth in residential property values, underpinned by improving sales activity, limited housing supply and tight rental conditions. While affordability and economic conditions may influence the pace of growth, the market's supply-demand imbalance is expected to continue supporting both prices and rents over the medium term.

Explore the full Hobart Spring report for detailed insights into sales activity, housing supply, property values and rental market performance across Greater Hobart.