M:
The Big Picture
Regional Tasmania Residential Spring/25
The Economy Key Drivers
Sales +11%
Regional Tasmania residential annual rolling sale transactions tallied to 5,790 in the second quarter of 2025, rising 0 1% from the previous quarter and overall 11% higher than a year ago This was influenced by a more favourable lending environment and ramped up market activity following a period of modest price performance As a benchmark, the annual average was 5,933 sales over the past five years
Share of State Annual Sales
The share of Tasmania’s total number of annual residential sales recorded in Regional Tasmania was 55% at the end of Q2 2025 This was higher than one year ago when the proportion was 54%, which was on par with the 24% share recorded five years ago Over the past year, Regional Tasmania (11%) outpaced Greater Hobart (5%) in the annual growth of sales activity
Total Number of Annual Sales Regional Tasmania
Tasmania, Q2/25
Share of State Annual Sales, by Number Regional Tasmania
Duration +16 days
Regional Tasmania residential homes took an average 106 days on market - from the time they were listed to the day they went under contract - in the year ending Q2 2025 This duration was 99 days a quarter ago (+7 days) and 90 days a year ago (+16 days) 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 five-year average has taken 86 days to sell a home
Average Days on the Market Regional
Listings
Newly advertised property listings in Regional Tasmania were 9.7% lower in the month of June 2025, than the equivalent period last year, as reported by Cotality This trended below the -9.3% for the combined regional areas of Australia and -7 0% across Australia
Regional Tasmania’s total number of listings in the month of June 2025 were 5.9% below the equivalent period last year, according to Cotality By comparison, total listings were -5.6% across the combined regional areas of Australia and -2 1% Australian-wide
Change in Average Prices Regional Tasmania Average Price $520,500
Residential property prices across Regional Tasmania rose by 2 4% in the year ending Q2 2025, although with a 1 0% decrease recorded in the most recent quarter This brought the average residential value to $520,500, following several years of a mixed price performance between houses and apartments Annual residential price growth has averaged 10.3% over the past five years.
Regional Tasmania Price Outlook +3%
Forecast for Average Prices
Looking ahead, McGrath Research anticipates residential property prices to increase by 3% by the end of 2025, followed by a further 2% rise in 2026 in Regional Tasmania. Factors taken into consideration include the reduction in mortgage interest rates encouraging stronger buyer confidence following subdued capital value performance
Regional Australia Vacancy 1.5%
Change in Residential Rental Vacancy
Regional Australia residential rental vacancy was recorded at 1 5% in Q2 2025, falling 8 bps in the quarter and in total, 6 bps lower over the past year Generally, 3% vacancy is considered a balanced market between rental supply and demand Below this benchmark is considered to be an undersupplied pool of rental homes. Over the past five years, rental vacancy has averaged 1 4% per year
Regional Tasmania Yield +9 bps
Change in Gross Rental Yield
Residential gross rental yields rose 5 bps in the Q2 2025 quarter to be 4 92% across Regional Tasmania, while being 9 bps more than a year ago. Gross rental yields are a good initial measure of comparing the return of a property investment before expenses are deducted. Gross rental yields have averaged 4 93% over the past five years
Regional Tasmania, Q2/25
Change from a year ago
Residential Rents Update
Average Weekly Rent $450
Regional Tasmania residential rents rose 1.1% in Q2 2025, while increasing 4 7% over the past year, to stand at $450 per week Low vacancy has kept rents elevated, although rents are now rising at a slower pace than previous years On average, over the past five years, rents grew 8 9% per year.
Change in Average Weekly Rents
Regional Tasmania
Regional Tasmania Rental Outlook +5%
Forecast for Average Rents
As the completion of new builds remains low across Regional Tasmania, there remains an undersupply of new homes being added to the rental pool while stronger population growth is projected As a result, McGrath Research forecast sustained upward pressure on rents of 5% at the end of 2025, with a further 4% rental growth likely in 2026
Definitions
Regional Tasmania
Regional Tasmania refers to the area outside of ‘Greater Hobart’ or ‘Rest of State’ for Tasmania as defined by the Australian Bureau of Statistics.
Guiding you home
Michelle Ciesielski Head of Research, McGrath Research
michelleciesielski@mcgrath com au +61 414 694 220
www mcgrath com au