Hobart’s prestige housing market in Q1 2025 continues to demonstrate resilience and exclusivity, driven by limited supply, increasing demand from high-net-worth buyers, and a preference for waterfront and heritage properties.
Paul Reed
T.G. Newton Hobart
Sales Exec Paul Reed discusses ‘a quarter like no other’ for the Hobart real estate market
A selection of some of our favourite homes from chic city pad to a modern rural retreat
Opportunities in a changing market, where are we heading and how it can help or hinder your decisions
An in depth review of the Battery Point market for Q1 2025
West Hobart
An in depth review of the West Hobart market for Q1 2025
An in depth review of the Sandy Bay market for Q1 2025
An in depth review of the North Hobart market for Q1 2025
An in depth review of the South Hobart market for Q1 2025
Market Review & Outlook
By Paul Reed Sales Executive, T.G. Newton
As a seasoned real estate executive, I present a comprehensive overview of Hobart's real estate market performance in the first quarter of 2025, alongside an economic outlook informed by data from authoritative sources such as the Reserve Bank of Australia (RBA), the Australian Bureau of Statistics (ABS), and the Real Estate Institute of Australia (REIA).
Market Performance in Q1 2025
In the first quarter of 2025, Hobart's property market exhibited signs of stabilisation following a period of price adjustments According to CoreLogic data, national property prices increased by 0 3% in February, with Hobart recording a 0 4% rise, indicating a modest recovery in the market
However, this uptick follows earlier declines, as reported by PropTrack, which noted a 0 08% drop in national property prices in January, marking the second consecutive month of decreases Hobart, along with Melbourne and Sydney, experienced the most significant declines during this period
Housing Affordability
Housing affordability in Tasmania has reached record lows, with mortgage repayments consuming 50 1% of the median family income as of the December quarter of 2024
This trend underscores the financial pressures faced by prospective homeowners in Hobart and may influence demand dynamics in the short to medium term.
According to CoreLogic data, national property prices increased by 0.3% in February, with Hobart recording a 0.4% rise, indicating a modest recovery in the market.
Economic Outlook
The RBA's February 2025 Statement on Monetary Policy highlights a complex economic landscape While inflation has continued to ease, returning to the 2–3% target range sooner than anticipated, the global economic outlook remains uncertain due to new trade policies and international tensions Domestically, the labor market has shown surprising strength, which could support consumer confidence and, by extension, the housing market However, Tasmania's state budget has raised concerns over escalating debt, with projections indicating net debt could rise from $3 5 billion in 2023-24 to $8 59 billion by 2027-28 Such fiscal challenges may impact public spending and economic growth, factors that are critical to the health of the real estate sector
Conclusion
Hobart's real estate market in Q1 2025 reflects a period of cautious optimism While recent data indicates a stabilisation in property prices, affordability concerns and broader economic uncertainties necessitate a measured approach for investors and stakeholders Continuous monitoring of economic indicators and fiscal policies will be essential in navigating the evolving landscape of Hobart's property market
By Paul Reed Sales Executive, T.G. Newton
Our Elite Collection
A SELECTION OF SOME OF OUR MOST FAVOURITE HOMES
Elite City Pad
4/42-50 PATRICK STREET, HOBART
A chic city pad that offers seamless indoor/outdoor flow from the open plan living to the large courtyard and a rare sight in the city is it’s under cover double garage
Elite View
127 DERWENT AVENUE, LINDISFARNE
With sprawling views across the River Derwent and Tasman bridge this home is one of Lindisfarne’s hidden gems
126 LEWISHAM SCENIC DRIVE, LEWISHAM
Modern sprawling family home minutes from the beach and including a 1bedroom private retreat
Elite Cottage
14 FRASER STREET, NEW TOWN
Award winning architects Taylor and Hinds used their spectacular vision to bring this 1900's cottage into the modern era
Elite Project
BRIGHTON ESTATE, BRIGHTON
Since 2017 Brighton Estate has been on of Tasmania’s largest residential developments now delivering modern affordable homes.
Elite Charm
18 RATTLE STREET, NEW TOWN
Sales Exec Paul Reed discusses ‘a quarter like no other’ for the Hobart real estate market.
Elite Rural
9 HEATHERBELL ROAD, FORCETT
A pool,5 bedrooms, acreage, this one has it all Natural light fills this home and makes it one of the suburbs premier homes
Economic Outlook
Opportunities in a changing market.
By Paul Reed Sales Executive, T.G. Newton
As we approach the second quarter of 2025, Hobart's real estate market is poised for notable developments influenced by a combination of economic indicators, housing policies, and demographic trends.
Economic Indicators
Tasmania's economy is projected to grow by 1.5% in the 2024-25 fiscal year, reflecting a steady economic environment conducive to property market stability. However, challenges such as high electricity costs continue to affect residents, with reports indicating that one in five Tasmanian households struggle to afford their electricity bills.
Additionally, the Nyrstar Hobart zinc smelter plans to reduce production by 25% starting in April, raising concerns about potential impacts on local employment and economic activity
Hobart Property Investment Outlook 2025
Hobart’s property market in 2025 is expected to see steady demand, supported by population growth, infrastructure projects, and a tightening rental market. With vacancy rates remaining low and rental prices continuing to rise, investors may find strong yields, particularly in high-demand areas. Limited new housing supply is also likely to drive competition for quality properties
However, challenges such as rising living costs and economic uncertainty, including energy prices and industry shifts, could impact affordability and buyer sentiment Investors should focus on well-located properties with strong rental appeal to capitalize on market resilience
Tasmania's economy is projected to grow by 1.5% in the 2024-25 fiscal year, reflecting a steady economic environment conducive to property market stability.
Housing Supply and Demand
KPMG's latest Residential Property Market Outlook report forecasts a 5.7% increase in house prices and a 5.3% rise in unit prices for Hobart in 2025.
The housing crisis in Tasmania has intensified, with the social housing waitlist growing and rents increasing significantly The Tenants' Union reports that nearly five people are added to the waitlist each week, highlighting the pressing need for affordable housing solutions Despite government initiatives to build more homes, progress has been slow, exacerbating the supply-demand imbalance Market Forecast
After a period of stagnation, Hobart's property market is expected to experience renewed growth. KPMG's latest Residential Property Market Outlook report forecasts a 5.7% increase in house prices and a 5.3% rise in unit prices for Hobart in 2025. This anticipated growth is attributed to factors such as population increases, economic stability, and ongoing infrastructure projects. Rental Market
The rental market in Hobart remains tight, with low vacancy rates and rising rents indicating strong demand for housing. This trend presents opportunities for investors but poses challenges for tenants seeking affordable accommodation
Infrastructure Developments
Significant infrastructure projects, including the Macquarie Point Waterfront/Hobart Railyard Redevelopment ($300 million) and the Macquarie Wharf Redevelopment ($240 million), are set to reshape Hobart's waterfront These developments are expected to enhance the city's appeal and stimulate economic activity, potentially influencing property values in surrounding areas
Conclusion
Hobart's real estate market in the upcoming quarter is characterised by a blend of opportunities and challenges. While economic growth and infrastructure projects provide a positive outlook, issues such as housing affordability, energy costs, and industrial uncertainties necessitate careful consideration by investors and policymakers alike.
Sandy Bay IN REVIEW
Sandy Bay’s real estate market has maintained its reputation as one of Hobart’s most desirable and resilient property sectors Buyer demand remains strong, particularly for well-appointed family homes and premium waterfront properties, despite broader economic headwinds
Inventory remains tight, with limited highquality stock coming to market, which has helped sustain property values Downsizers and interstate buyers continue to drive competition, particularly in the $1.5M+ price bracket. Apartments and townhouses are also seeing increased interest, reflecting a shift towards low-maintenance, high-end living. Looking ahead, the market’s stability will depend on interest rate trends and broader economic conditions, but for now, Sandy Bay remains a blue-chip enclave with enduring appeal.
Highlight
Capturing a spectacular outlook of Hobart City, this grand residence offers spacious elevation showcasing world-class views of the Tasman Bridge - with its stunning floor-to-ceiling windows positioned to enhance the unobstructed city & harbor vista
SANDY
Market Insights
Limited Supply, Strong Demand
One of the defining factors shaping the market is scarcity. Quality homes in prime locations particularly those with panoramic water views or heritage charm are in short supply. This has helped stabilise property values, with buyers, particularly downsizers and interstate investors, willing to pay a premium for turnkey, well-located residences.
At the top end, homes above $2 million are still commanding attention, driven by Sydney and Melbourne buyers looking for a lifestyle shift The middle-tier market, around the $1 2M–$1 8M range, remains competitive, with professional couples and families seeking entry into the suburb’s blue-chip appeal
Apartment & Townhouse Growth
A noticeable shift in buyer behaviour is the increasing demand for apartments and high-end townhouses Downsizers are prioritising lowmaintenance living, while young professionals and investors see value in well-positioned, modern developments Premium apartment sales have remained steady, particularly in sought-after locations near Wrest Point and the University of Tasmania precinct
Challenges & Opportunities
Despite the resilience, interest rates and lending restrictions continue to be a factor in the market’s pace Buyers are more discerning, ensuring that only well-presented and realistically priced properties attract strong competition For sellers, this means that strategic marketing and precise pricing are crucial.
Sales Above $1m
$2,100,000 $1,900,500 $1,900,000 $1,900,000
Battery Point IN REVIEW
Battery Point remains one of Hobart’s most tightly held and prestigious suburbs, with its blend of historic charm, waterfront appeal, and prime location continuing to drive demand
Stock remains exceptionally limited, with few properties changing hands, keeping prices firm Heritage homes in immaculate condition are fetching premium prices, particularly from downsizers and interstate buyers looking for exclusivity
The $2M+ market remains competitive, while well-located cottages and townhouses also continue to attract interest from professionals and investors. With demand outstripping supply, Battery Point retains its status as one of Hobart’s most sought-after postcodes. Looking ahead, any well-presented home that comes to market is expected to generate strong interest, reinforcing the suburb’s reputation as a long-term blue-chip investment.
Highlight
A testament to timeless craftsmanship, this historic residence is a statement of elegance and prestige Positioned in one of Hobart’s most sought-after waterfront precincts, it offers the perfect blend of heritage character and vibrant lifestyle, just steps from world-class dining, galleries, and the harbour
91 SALAMANCA PL, BATTERY POINT
Market Insights
A Market Defined by Scarcity
Unlike other high-end suburbs, Battery Point’s defining characteristic is its extreme lack of turnover. With many properties held by long-term owners, the number of listings remains critically low, creating a nearpermanent supply shortage When quality homes do hit the market, they often attract significant buyer interest, particularly from downsizers and interstate buyers seeking a blue-chip investment
Strong Demand for Heritage & Luxury Homes
The most sought-after properties remain the suburb’s historic residences meticulously restored Georgian and Federation homes with modern updates Buyers in the $2M+ range are willing to pay a premium for turnkey properties that blend period elegance with contemporary comforts For those with an eye for restoration, unrenovated homes still command interest, but buyers are increasingly mindful of the costs and complexities of heritage-sensitive renovations
Apartments & Townhouses Gaining Traction
While Battery Point has traditionally been dominated by standalone homes, high-end apartments and townhouses are becoming increasingly desirable. Downsizers seeking a lock-and-leave lifestyle are driving demand in boutique developments, provided they offer privacy, water views, and quality finishes. However, with strict planning controls, new developments remain rare, adding to the suburb’s exclusivity.
Highlight
Effortless style meets city convenience in this contemporary home, where clean lines and sophisticated interiors define the space. Lightfilled open-plan living, premium finishes, and a low-maintenance design make this the perfect home for those who appreciate modern elegance in the heart of the action.
North Hobart IN REVIEW
North Hobart’s real estate market continues to perform steadily, driven by strong demand from young professionals, investors, and downsizers looking for a vibrant, inner-city lifestyle
The suburb’s mix of heritage homes, character cottages, and modern townhouses remains highly sought after, with well-renovated properties attracting strong buyer interest The mid-tier market, particularly homes in the $900K–$1 3M range, has remained competitive, while apartments and townhouses are seeing steady demand from investors and owner-occupiers alike.
With its proximity to the CBD, thriving café and restaurant scene, and ongoing gentrification, North Hobart remains a hotspot for buyers. Looking ahead, affordability relative to neighbouring blue-chip suburbs will likely keep demand strong, ensuring North Hobart remains one of Hobart’s most dynamic property markets.
3/207A CAMPBELL ST, NORTH HOBART
Market Insights
Consistent Demand, Evolving Buyer Trends
The market remains active, with demand strongest for well-renovated character homes and modern townhouses Properties in the $900K–$1 3M range are particularly competitive, as buyers look for quality homes that blend period charm with contemporary updates While price-sensitive buyers are becoming more cautious due to interest rate considerations, well-presented homes continue to attract multiple offers
Affordability & Lifestyle Driving Growth
Compared to neighbouring blue-chip suburbs like West Hobart and Battery Point, North Hobart still offers relative affordability while maintaining excellent lifestyle appeal. This balance continues to attract buyers priced out of more expensive markets, reinforcing steady growth. However, as interest rates and lending conditions remain a factor, buyers are becoming more discerning, ensuring that well-presented properties with realistic pricing are the ones that move quickly.
The Investment Perspective
North Hobart continues to perform well as an investment location Rental demand is strong, driven by professionals and students wanting city-fringe living Yields remain solid, with well-located properties seeing minimal vacancy periods As lifestyle suburbs gain prominence, North Hobart is expected to hold its value and remain a strong performer in Hobart’s property landscape
Sales Above $1m
$1,185,000 $892,255 $850,000 $830,000
West Hobart IN
REVIEW
West Hobart continues to perform as one of the city’s most desirable inner suburbs, attracting families, professionals, and downsizers seeking a balance between lifestyle, convenience, and character
Heritage homes and well-renovated period properties remain the suburb’s top performers, with demand particularly strong in the $1M–$1 5M price range The market has remained steady, with limited stock keeping competition healthy, especially for homes with city or water views.
Apartments and townhouses are also seeing increased demand as buyers look for lowermaintenance alternatives to traditional homes. While market activity has softened slightly compared to peak periods, West Hobart remains a blue-chip location where well-presented properties continue to achieve strong results. Looking ahead, its proximity to the CBD, excellent schools, and community appeal should keep buyer interest high.
Highlight
Set amidst rolling hills and lush greenery, this architecturally designed home is a retreat from the everyday. Expansive living spaces open to panoramic vistas, while high-end finishes and thoughtful design create a seamless connection between home and nature. A rare opportunity to embrace serenity without compromising on style.
24 STEVENS FARM RD, WEST HOBART
Market Insights
Heritage Homes Driving Market Strength
West Hobart’s historic homes remain the suburb’s greatest asset Federation residences and character cottages, particularly those that have been carefully restored, continue to attract competitive bidding Buyers remain focused on properties that offer a blend of period charm and modern comfort, with demand particularly strong in the $1M–$1.5M range. While unrenovated homes still hold appeal, the rising cost of trades and materials has made buyers more cautious, reinforcing the premium placed on turnkey properties.
Family Appeal & Lifestyle Factors
West Hobart’s strong community feel and familyfriendly reputation continue to drive interest. Access to quality schools, parks, and local cafés has made the suburb a top choice for families looking to secure a long-term home Knocklofty Reserve and Caldew Park remain key lifestyle drawcards, offering green spaces that add to the suburb’s appeal This demand has resulted in minimal turnover, with many owners choosing to hold onto their properties rather than sell, further tightening supply
Scarcity Keeping Prices Firm
One of West Hobart’s defining market characteristics is its low turnover rate Many homes are held for decades, creating a market where supply struggles to keep up with demand When high-quality properties do become available, they tend to attract strong competition, particularly from local upgraders who are keen to stay within the suburb This scarcity continues to underpin property values, making West Hobart a reliable long-term investment
Highlight
1/324 DAVEY ST, SOUTH HOBART
Nestled in one of Hobart’s most prestigious streets, this residence is a seamless blend of classic charm and contemporary luxury Grand proportions, modern detailing, and refined interiors create an atmosphere of timeless elegance, while its city-fringe location offers the perfect balance of convenience and tranquility.
South Hobart IN
REVIEW
South Hobart remains one of Hobart’s most indemand suburbs, offering a rare combination of natural beauty, historic charm, and proximity to the CBD The market has remained strong in Q1 2025, with well-renovated character homes and properties in prime locations continuing to attract competitive interest
Heritage properties, particularly those along Elboden Street and Macquarie Street, have been standout performers, with buyers drawn to their federation architecture and generous land sizes. Family homes in the $1M–$1.5M range have seen steady demand, while prestige properties in the foothills of Kunanyi/Mount Wellington have commanded premium prices due to their privacy and scenic outlooks.
Limited stock remains a key factor in the market’s stability, with many homeowners choosing to hold onto their properties, further driving demand. South Hobart’s lifestyle appeal proximity to walking trails, local cafés, and top schools continues to make it a blue-chip destination for buyers seeking a long-term investment in one of Hobart’s most liveable suburbs
SOUTH HOBART
Market Insights
The Power of Community & Local Business
Unlike other high-end suburbs that rely purely on prestige, South Hobart’s value lies in its villagelike atmosphere The strong presence of local businesses, cafés, and artisan retailers adds to its charm, making it one of the few suburbs where walkability and social connection genuinely impact real estate values. Buyers are paying premiums to live within walking distance of popular spots like the South Hobart Deli and Ginger Brown, with homes in these pockets selling faster and for more.
Green Spaces & Outdoor Appeal Driving Demand
While much of Hobart enjoys access to nature, South Hobart takes it a step further. The suburb serves as a gateway to kunanyi/Mount Wellington, offering direct access to bushwalks, bike trails, and outdoor recreation. This has made homes with proximity to green spaces more desirable than ever, particularly for buyers prioritising health and lifestyle Large blocks with gardens and properties with direct views of the mountain have performed exceptionally well, with buyers seeing them as long-term investments in both home and lifestyle
The Rise of Off-Market Transactions
With stock levels remaining low, off-market sales have become a key feature of South Hobart’s real estate landscape Many premium homes are selling before ever hitting the public market, with buyers relying on strong agent relationships to access these exclusive opportunities For sellers, this means well-connected agents are achieving premium results without the need for widespread advertising, while buyers must be proactive and ready to move quickly
