M:
Headlines
Winter/26
Hobart Residential
Economy
Residential sales
Hobart recorded a higher number of residential sales over the past year Sales trended up 16% with a total of 3,951 transactions in the year ending Q1/26, outpacing the five year annual average of 3,630 sales A change in sales activity can be influenced by interest rates, economic confidence, housing supply, government policies and shifting population trends which impacts buyer demand. Isolating the 1,015 sales in the Q1/26 quarter, this was 1% below the previous quarter, whilst lower than the 912 five year quarterly average
Share of state annual sales
Hobart made up 37% of the total number of annual residential sales recorded in Tasmania at the end of Q1/26. This was similar to one year ago when the proportion was 37%, whilst above the 35% share recorded five years ago. A change in residential sales activity over the year to Q1/26 saw Hobart (+16%) outpacing Regional Tasmania (+15%)
Rolling tally of annual residential sales
Hobart, Q1/26
of state annual sales, by number
Hobart
Share
Hobart
Hobart, Q1/26 by Local Government Area
Residential
Hobart homes are taking less time to sell than one year ago. Residential homes averaged 22 days on market in Q1/26, from the time they were listed, to the day they went under contract This average duration was 26 days the quarter before (-4 days) and 34 days one year ago (-12 days) A lower number of days on market typically indicates that homes are selling more quickly, often reflecting strong buyer demand and well priced, desirable properties. In contrast, a higher number of days on market may signal slower buyer activity or that homes are priced above current market expectations Looking back over the past five years, it has taken 22 days on average, to sell a home
Average days on the market
More Hobart homes have been newly listed for sale than this time last year. Newly advertised listings in Hobart were 9.1% higher in the month of March 2026 than the equivalent period last year, according to Cotality. This change in new listings trended higher than the Australian average of -3 3% and above the -6 3% across Australian capital cities
Overall, the total number of homes listed for sale in Hobart is down on last year. Hobart's total number of listings in the month of March 2026 were 29 6% below the equivalent period last year, according to Cotality. By comparison, the Australian average change for total listings was -11 5% and across Australian capital cities was -8 6%
Hobart, Q1/26
Residential prices
Update
Tracking median prices Hobart Median price $765,200
Hobart residential property prices have trended higher than a year ago Prices across Hobart rose by 12 0% in the year ending Q1/26, with a 3 2% increase recorded in the most recent quarter As a result, the median residential value reached $765,200. Residential values shift with changes in interest rates, supply and demand, economic conditions, population trends and local infrastructure which influences market appeal and buyer capacity Annual residential price growth has averaged 8 0% over the past five years
Forecast for median prices Hobart Price outlook +4%
Looking ahead, Hobart residential prices are likely to rise over the coming year McGrath Research forecast Hobart residential property prices to increase by 4% at the end of 2026, followed by a lower 1% fall in 2027 Residential price forecasts consider borrowing capacity, the balance of supply and demand, economic conditions, population trends and local infrastructure which shapes affordability, demand and market direction
Hobart, Q1/26
Hobart, Q1/26
Residential rents
The number of residential rental homes in Hobart is currently undersupplied Hobart rental vacancy was recorded at 1 2% at the end of Q1/26, falling 20 bps in the quarter whilst falling 70 bps over the past year according to REIA. 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, which places upward pressure on weekly rents For the past five years, Hobart residential rental vacancy has averaged 1 6%
Hobart gross rental yields have trended higher over the past year Residential yields lifted 6 bps in the Q1/26 quarter to be 4.22% across Hobart, whilst 2 bps higher compared to a year ago A yield pushing beyond 4% is more desirable for investment properties located in capital cities, while below this, tends to show higher property values relative to rental income Hobart gross rental yields have averaged 4 08% over the past five years
Gross rental yield
Hobart, Q1/26
Residential rents
Median weekly rent
Residential rents across Hobart trended above the weekly rate recorded a year ago Hobart rents rose 3 6% in Q1/26, whilst increasing 7 4% over the past year, to stand at a median $580 per week Rent changes are driven by rental supply, tenant demand, migration trends, economic conditions and investor activity which together impact the vacancy rate For the past five years, Hobart rents grew an average 4.6% per annum.
Tracking median weekly rents Hobart
Forecast for median rents Hobart Rental outlook +7%
The Hobart residential market is continuing to experience upward pressure on weekly rents McGrath Research forecast Hobart rents to rise 7% at the end of 2026, with a further 4% rise likely in 2027 The rental forecast takes into consideration new and existing supply levels, population changes, economic conditions and upgraded local infrastructure which can influence future tenant demand, vacancy rates and rental growth
Hobart, Q1/26
Definitions
Hobart
Hobart refers to the Greater Capital City Statistical Area or ‘Greater Hobart’ as defined by the Australian Bureau of Statistics.
Interest rate target
The cash rate target is the interest rate set by the Reserve Bank of Australia to influence borrowing costs, economic activity, and inflation across the economy
Unemployment
The unemployment rate measures the share of people in the labour force who are willing and able to work but currently without employment
Sales
Sales of residential homes refers to the number of houses or apartments sold within a specific area and time period, most commonly being reported within the quarter or year
Sales velocity
The length of time a property spends on the market from listing to exchange, with the duration measurement represented as being number of days.
Median price
The median price is the midpoint of all property sale prices, where an equal number of homes sell above and below that value
Yield
Gross rental yield is the annual rental income of a property divided by its market value, showing the return before expenses.
Local Government Area
A Local Government Area (LGA) is a defined geographic region administered by a local council responsible for community services, planning, and local regulations.
Economic growth
Economic growth is the rise in a country’s production of goods and services over time, reflecting how much the economy is expanding
Population growth
Population growth increases the number of people needing homes, boosting housing demand and influencing supply, prices, and future development needs
Auction clearance rate
Auction clearance rates show the percentage of properties sold at auction compared with those taken to auction over a given period
Listing
New listings are recently advertised homes, while total listings represent all properties currently for sale in the housing market at a given time.
Vacancy
Total residential vacancy refers to the proportion of rental properties unoccupied and available for tenants at a specific point in time
Median weekly rent
Median weekly rent is the midpoint of all weekly rental prices, with half of properties renting for more and half for less.
Guiding you home
Michelle Ciesielski National Head of Research, McGrath Research
www.mcgrath.com.au/research
Find an agent