How much Hobart home prices grew in 12 months

Buyer inquiry is increasing in Hobart. Picture: Supplied

Hobart’s median home price has grown by a five-figure sum in just one year.

PropTrack’s Home Price Index, released Monday, reveals a 3.1 per cent increase in the median value comparing August results to the same time last year.

That’s a $22,800 increase to the price of a typical home.

The report shows August prices dipped by 0.5 per cent compared to July. However, they remain 30 per cent higher than they were five years ago.

At $665,000, Hobart’s median price is the second cheapest of the capital cities, behind only Darwin.

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No.18 Driftwood Dr, Opossum Bay is for sale with Fall Real Estate for $950,000-plus.

No.1/30 Erebus St, Warrane is listed with LJ Hooker Pinnacle Property for $539,000-plus.

Katrina Arkley, director of Arkley & Co, said over the past few months there has been a noticeable lift in buyer activity, particularly from Hobart families and younger buyers who are keen to secure a home before the end of the year.

Mrs Arkley said there is also a steady flow of interest from interstate purchasers who see good value in Hobart compared to larger cities.

“Investors are beginning to re-emerge, too, encouraged by stable rental demand and competitive yields,” she said.

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Katrina Arkley, director of Arkley & Co.

Petrusma Property sales manager David McLeod said activity had been “steadily increasing” over the last few months.

“Anecdotally, more young buyers and interstate buyers and investors are snapping up anything in the lower price ranges,” he said.

“Stock levels do appear lower than average, but as is typical at this time of year, appraisals and listings have begun to increase with new properties to hit the market for the spring rush.”

REA Group senior economist Eleanor Creagh said buyer inquiry data suggests conditions in Hobart could be “poised for a turnaround”.

Ms Creagh said this could come “potentially later this year”, if current housing market momentum and sentiment is maintained.

“Hobart has experienced a meaningful lift in inquiry per listing, rising around 30 per cent year-on-year,” she said.

“So underscoring that, there’s the potential to see activity reigniting into the spring selling season.”

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Petrusma Property agent David McLeod.

Interest rates remain a talking point, but Mrs Arkley said buyers seem far more comfortable now that there has been a period of stability.

Many are optimistic about the possibility of small decreases ahead, she said.

“That sense of certainty has given people the confidence to get on with making decisions,” she said.

Meanwhile, Hotspotting’s new Top 10 Best Buys report included Hobart and Launceston among the nation’s most promising markets for medium-to long-term capital growth.

The report highlights locations where infrastructure investment, economic momentum, and dwelling type align to create compelling opportunities for investors and homebuyers.

No.50 Flinders Esp, Taroona is seeking $4m-plus with Wolf Property.

Elders Tasmania has No.2 Barilla Ct, Midway Point on the market for $675,000-plus.

Hotspotting director Terry Ryder said Launceston is emerging as a tech and energy hub, with projects like the $2.1bn AI factory as well as hospital upgrades driving population growth.

“It’s a city that’s quietly building a future around innovation, and the property market is responding,” he said.

Hotspotting general manager Tim Graham said Hobart is evolving into a capital city with serious investment appeal.

“It’s a market that blends affordability with ambition — ideal for strategic investors,” he said.

Mr Graham said Hotspotting’s research identified more than just growth.

“We’re forecasting transformation,” he said.

“These markets are evolving in ways that will reward early movers.”

HOME PRICE INDEX

Area, Monthly growth, Annual growth, 5-year growth, Median value

Hobart -0.5% 3.1% 30.2% $665,000

Capital cities 0.5% 4.9% 46% $938,000

Rest of Tasmania -0.1% 4.3% 55.8% $516,000

Regional areas 0.3% 6.6% 65.2% $658,000

Source: PropTrack August all dwellings

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