Surging home prices set to wipe out previous market falls

Economist Eleanor Creagh sees a bright future for Hobart home values. Picture: Supplied

Could a new record price for Hobart housing be on the horizon?

An expert says: Yes.

PropTrack’s Home Price Index, released Monday, shows the southernmost capital city’s median dwelling price grew again in November by 0.16 per cent.

This took the annual figure to 7.59 per cent growth, which is higher than Sydney, Melbourne and Canberra.

It is also an increase of $51,700 to the city’s median price.

Hobart’s median dwelling value — houses and units combined — is now $699,000. Houses are up to $752,000 and units $594,000.

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Expert predicts Hobart home prices to surge next year

Eleanor Creagh.

PropTrack senior economist Eleanor Creagh said there has been a “very clear turnaround” in Hobart’s housing market conditions and an acceleration in growth relative to 2024.

Ms Creagh said annual growth has picked up strongly throughout 2025 and momentum has pushed growth over the past quarter to be a lot stronger than a year ago.

“Hobart has been underperforming for quite a significant period — and does remain the only capital city market where prices are below peak levels — but with the turnaround in conditions that we’ve seen this year, I’d say Hobart is close to setting a fresh record high,” she said.

“This would wipe out those price falls that we saw through the underperforming period.”

In regional Tasmania, the report showed 6.69 per cent annual growth and a 0.58 per cent uptick in November.

Over $35,000 has been added to the median prices over the past 12 months, bringing the median to $536,000.

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Samantha Spilsbury.

Buyers Agents Tasmania director Sam Spilsbury said since the 5 per cent deposit scheme came into effect in October, activity had “spiked dramatically”.

“Properties in this bracket are drawing 30 or more groups through open homes and attracting up to 15 offers — reminiscent of the competitive conditions of 2021–22,” she said.

“Many of these buyers are first-home purchasers, eager to take advantage of the scheme before limited allocations are filled, adding urgency to the market.

“Investors are also re-emerging, particularly in the northwest and outer Hobart suburbs, where yields remain among the most attractive in the country.”

Going, going, gone!

Ms Creagh said the delivery of new housing remains constrained.

“Conditions have been tilted towards sellers, and I’d say that’s going to remain the case,” she said.

“It doesn’t look like we’re going to see a surge in completions … and building approvals are still tracking well below target.”

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