Issuu

Research

August/26 Tasmania Residential

Opening the door to your first home: A guide for Tasmania

Buying your first home Current market participation, government grants and eligibility pathways in Tasmania

First home buyer new loan commitments in Tasmania Annual total number of loans & % share of owner-occupier lending, as at Q1/26

First home buyers surge, driving up prices in the lowest quartile Activity for first home buyers has remained buoyant in Tasmania, supported by an array of government incentive packages. Loan commitments to first home buyers continue to represent a significant and growing share of owner-occupier new lending, despite a higher interest rate environment. Over the past decade, this first home buyer share surged from 27% to be 37% in Q1/26. Trending 17.5% higher than a year ago, the number of loan commitments to first home buyers in Tasmania tallied to 2,386 in the year to Q1/26. This remained lower than back in 2021 and was shy of 2022 when these loans taken out reached 2,886 and 2,431, respectively.

Source: McGrath Research, ABS

Tracking average sales price for lowest 25% of residential values Tasmania, plus % price change of this quartile over the year ending Q1/26

9% 3%

12%

At the time, HomeBuilder, the temporary federal construction stimulus grant had been introduced as an economic response to the pandemic. Tasmanian property values in the bottom quartile of the market recorded strong growth in the year ending Q1/26. Regional Tasmania houses grew the fastest with 12% to reach an average $513,900, compared to regional apartments which grew 1% to $397,800. In Hobart, average house prices saw 9% annual growth to $600,000 in Q1/26, as apartments rose 3% to $463,400. Limited housing supply, a shortage of new housing construction and competition from interstate investors seeking relative value have sustained upward pressure on prices. However, recent tax changes are likely to moderate investor activity over time, potentially easing competition in entry-level market segments with the intention of further improving opportunities for first home buyers.

Top 5 local markets ranked by lowest average price for houses and apartments Tasmania, by Local Government Area, as at Q1/26

Hobart Houses

Hobart Apartments

Reg. Tasmania Houses

Reg. Tasmania Apartments

Derwent Valley

West Coast

$584,400

$405,800

$201,700

Glam-Spring Bay $367,800

Brighton

Cent. Highlands

Devonport

$697,200

$472,200

$378,800

$431,100

Glenorchy

King Island

$700,000

$499,400

$425,300

Waratah-Wynyard $431,100

Sorell

Circular Head

Nth. Midlands

$757,700

$570,800

$483,600

$447,000

Clarence

Kingborough

$904,700

$580,900

Waratah-Wynyard $568,500

$451,300

Burnie

Source: McGrath Research

Source: McGrath Research, Cotality

Cost to buy | Tasmania What incentives are available across Australia? First Home Super Saver Scheme | FHSSS Eligible buyers can make voluntary super contributions (often at a lower tax rate) then withdraw to help purchase their first home. Up to $15,000 per financial year and $50,000 in total can count towards the scheme; this can be doubled for a couple. FHSSS can complement the First Home Guarantee and Help to Buy.

Which additional state-based incentives are offered in Tasmania? MyHome shared equity program Buy your home with a deposit of 2% of the purchase price and share equity with Homes Tasmania until this is paid out within 30 years.

First Home Guarantee | FHG Buy your home to live in within the price cap to be entitled to a deposit guarantee covering up to 5% of the property value. Apply through participating lenders to ensure there is no Lenders Mortgage Insurance (LMI) payable. There are no limits on your annual income or the places available, making the scheme broadly accessible.

Established homes

Help to Buy equity scheme Buy with a minimum 2% deposit of the property value, with no LMI payable for your home to live in. You share in the home’s equity with the Government, which is 40% for a new home and 30% for an established home, until this is repaid over time or when the property sells. There are eligibility limits on your annual income and only 10,000 places are available each year.

First Home Owner Grant | FHOG

Homes Tasmania shares 30% or $150,000 (whichever is the lesser amount) of the equity. The price cap is $750,000 for established homes. New homes or house-and-land packages Homes Tasmania shares 40% or $300,000 (whichever is the lesser amount) of the equity. The price cap is $800,000 for new homes.

New homes | Newly built Grant of $20,000 is available when purchasing a new home until 30 June 2027. Vacant land When vacant land is purchased to build a home, a $20,000 grant is available until 30 June 2027.

Three different paths to first home ownership The cost required to buy your first home varies by property price, eligibility and incentives. Using Oxygen Home Loans calculators, these examples show three potential paths to ownership.

Scenario 1

Scenario 2

Scenario 3

Single professional buys an established apartment in Greater Hobart

Couple buys a new house-and-land package in Regional Tasmania

Essential worker buys a new apartment in Greater Hobart

Property Price

$600,000

First Home Guarantee

Help to Buy scheme

MyHome scheme

$600,000

Deposit Required (2%)

-$12,000

Deposit Required (5%)

-$30,000

Deposit Required (2%)

-$12,000

Stamp Duty

-$23,000

Stamp Duty

-$23,000

Stamp Duty

-$23,000

Lenders Mortgage Insurance Est. Other purchase costs

Lenders Mortgage Insurance -$4,000

First Home Owner Grant Est. Upfront Cost

$39,000

Lenders Mortgage Insurance

Est. Other purchase costs

-$4,000

Est. Other purchase costs

-$4,000

First Home Owner Grant

+$20,000

First Home Owner Grant

+$20,000

Est. Upfront Cost

$37,000

Est. Upfront Cost

$19,000

Definitions

Housing Australia The Australian Government’s housing agency responsible for delivering programs which improve housing affordability, increase housing supply and support home ownership. Website: www.housingaustralia.gov.au Australian Taxation Office | ATO The Australian Taxation Office (ATO) is the federal government agency responsible for administering tax laws, including those relating to property ownership and capital gains tax compliance. Website: www.ato.gov.au State Revenue Office of Tasmania The Tasmanian Government agency responsible for administering taxes, duties, grants and compliance programs across the state. Website: www.sro.tas.gov.au Oxygen Oxygen Home Loans provides mortgage solutions and online calculators that can help first home buyers estimate borrowing capacity, repayments, deposit requirements and purchasing costs before entering the market. Website: www.oxygen.com.au/calculators

Recommendation Engage a qualified solicitor or conveyancer from contract review through to settlement. They can identify potential issues, explain your legal obligations and ensure all documentation is completed correctly. First home buyers should also allow for additional costs such as inspections, legal fees, loan establishment charges and moving expenses, and always confirm their eligibility for grants, concessions and government schemes before committing to a purchase.

Lenders Mortgage Insurance | LMI An insurance premium paid by borrowers with a low deposit (typically less than 20%) which protects the lender, not the borrower, if the home loan defaults.

Guiding you home Michelle Ciesielski National Head of Research McGrath Research www.mcgrath.com.au/research

Find an agent © McGrath Limited 2026 Disclaimer: This report is published for general information only and not to be relied upon in any way. Although high standards have been used in the preparation of the information, analysis, views and projections presented in this report, no responsibility or liability whatsoever can be accepted by McGrath Limited for any loss or damage resultant from any use of, reliance on or reference to the contents of this document. As a general report, this material does not necessarily represent the view of McGrath Limited in relation to particular properties or projects. Reproduction of this report in whole or in part is not allowed without prior written approval of McGrath Limited. McGrath trademarks are property of McGrath Limited.