Hobart Winter 2026 Property Market Report

Hobart’s residential property market is experiencing renewed growth, supported by rising sales activity, stronger price performance and ongoing rental demand. The Winter 2026 Hobart Residential Property Report highlights a tightening market, influenced by limited housing supply, steady population growth and sustained buyer interest.

For buyers, investors and owner‑occupiers, Hobart real estate continues to offer strong value, solid rental returns and long‑term growth potential as market conditions strengthen.  

Sales activity strengthens across Hobart
Residential sales across Hobart increased 16% over the past year, reaching 3,951 transactions and outperforming the five‑year annual average.


Hobart accounted for 37% of total residential sales across Tasmania, highlighting its importance within the state’s housing market.


At the same time, homes are selling more quickly, with average days on market falling to 22 days, reflecting improved buyer confidence and increased demand.

Supply dynamics supporting market conditions
Housing supply across Hobart remains constrained despite an increase in new listings, which rose 9.1% year‑on‑year.


Total listings declined significantly by 29.6%, limiting available stock and supporting stronger competition.


Population growth, while modest at 0.2%, continues to contribute to underlying housing demand across the market.

Strong price growth with positive outlook
Hobart residential property prices recorded 12.0% annual growth, bringing the median residential value to approximately $765,200.


Quarterly growth of 3.2% indicates improving momentum across the market.


Looking ahead, McGrath Research forecasts price growth of 4% in 2026, followed by a slight 1% decline in 2027, suggesting a period of stabilisation after recent gains.

Rental market remains undersupplied
Hobart’s rental market continues to experience undersupply, with vacancy rates at 1.2%, well below the balanced benchmark of 3%.


Rents increased 7.4% year‑on‑year to a median of $580 per week, reflecting strong tenant demand.


Rental growth is forecast to continue, with rents expected to rise 7% in 2026 and a further 4% in 2027.


Gross rental yields currently sit at 4.22%, offering attractive returns for investors in a tightening market.

Economic fundamentals influencing demand
Hobart’s property market is supported by broader economic conditions, although population growth remains relatively modest.


The cash rate currently sits at 4.35%, influencing borrowing conditions and housing affordability.


Unemployment is recorded at 5.2%, slightly above the national average, which may impact borrowing capacity over time.

Outlook for Hobart property in 2026
With rising sales activity, constrained supply and strong rental demand, Hobart’s property market is well positioned for continued stability and moderate growth in 2026.


For buyers and investors, the market offers a balanced mix of affordability, return potential and long‑term value, particularly as housing supply remains limited.

Explore the full Hobart Winter 2026 Property Report for detailed insights into sales trends, pricing and rental performance across the region.