M:
The Big Picture
Spring/25
Hobart Residential
Residential Sales Update
Sales -20%
Total Number of Sales Hobart
Hobart residential sale transactions tallied to 1,004 in the second quarter of 2025, a downward movement of 20% from the previous quarter In the past year, the total number was 5% higher, reaching 4,668 sales This was influenced by the tight lending environment with a focus on serviceability given higher property prices and the market anticipating further interest rates reductions. As a benchmark, over the past five years, the quarter tally averaged 1,190 sales and the annual average was 4,801 sales
Average Days on the Market Hobart Duration 79 days
Hobart homes took an average 79 days on market - from the time they were listed to the day they went under contractin Q2 2025 This duration was 69 days the quarter before and 77 days one year ago A lower number of days on market mean homes are selling fast with more desirable properties, while a higher number of days suggests a slower market with above market values Looking back, the fiveyear average has taken 51 days to sell a home.
Newly advertised property listings in Hobart were 30 5% lower in the month of June 2025 than the equivalent period last year, according to Cotality This trended below the Australian average of -11.7% and below the -12.9% across Australian capital cities
Hobart’s total number of listings in the month of June 2025 were 25.0% below the equivalent period last year, according to Cotality By comparison, the Australian average for total listings was -5.8% and across Australian capital cities was -4 4%
Residential property prices across Hobart rose by 5 8% in the year ending Q2 2025, with a 2 7% increase recorded in the most recent quarter This brought the median residential value to $699,500, reflecting an upswing in housing demand and growing resilience in the market. Annual residential price growth has averaged 7 9% over the past five years
Change in Median Prices Hobart
Forecast for Median Prices Hobart Price Outlook +4%
Looking ahead, McGrath Research forecasts Hobart residential property prices to increase by 4% by the end of 2025, followed by a stronger 6% rise in 2026. These projections reflect ongoing demand from limited housing supply, lowered interest rates and improving consumer confidence
Change in Residential Rental Vacancy Hobart Vacancy 0.4%
Hobart residential rental vacancy was recorded at 0 4% in Q2 2025, remaining stable in the quarter to fall 60 bps over the past year according to APM Generally, around 3% vacancy is considered a balanced market between rental supply and demand Below this equilibrium is considered to be an undersupplied pool of rental homes. Over the past five years, rental vacancy has averaged 0 7% per year
Change in Gross Rental Yield Hobart Yield +1 bp
Residential gross rental yields rose 1 bp in the Q2 2025 quarter to be 4 55% across Hobart, while being 27 bps higher than a year ago. Gross rental yields are a good initial measure of comparing the return of a property investment before expenses are deducted. A range of 4.00% to 5.00% is considered good for many properties located in capital cities, while below this, may indicate high property prices relative to rent, or low rental demand Gross rental yields have averaged 4 29% over the past five years
Change from a year ago
Hobart, Q2/25
Residential Rents Update
Change in Median Weekly Rents Hobart Median Weekly Rent
Hobart residential rents rose 0.9% in Q2 2025, while increasing 5 7% over the past year, to stand at $560 per week Extremely low vacancy has been keeping rents elevated, albeit now rising at a slower pace than previous years On average, over the past five years, rents grew 5 0% per year.
Forecast for Median Rents Hobart Rental Outlook +3%
As Hobart continues to experience significantly low residential rental vacancy, McGrath Research forecast sustained upward pressure on rents of 3% at the end of 2025, with a further 2% rental growth likely in 2026
Definitions
Hobart
Hobart refers to the Greater Capital City Statistical Area or ‘Greater Hobart’ as defined by the Australian Bureau of Statistics.
Guiding you home
Michelle Ciesielski
Head of Residential Research, McGrath Research
michelleciesielski@mcgrath com au +61 414 694 220
www mcgrath com au