Hobart Market Update 1st Half 2025
In Q4 2024, Hobart* had a median house price of $897,000 and a median unit price of $530,500 This represents an annual (Q4 2023- Q4 2024)softening of -5.0% for houses and -21.6% for units. Comparing Q4 2023and Q4 2024,total sales increased by 40.9%(to 155 sales) for houses and by 4.2%(to 74 sales) for units Current price softening in Hobart is a reflection of higher interest rates and economic conditions. Thatsaid, buyer interest remain high, and with a few new stand-alone houses planned for 2025the potential for a market recovery is high. Thus,buyers need to actfast and capitalise on current prices.
HOUSE SALES YEAR HALF YEAR CHANGE FROM LAST
HOUSE MEDIAN PRICE
HOUSE RENTAL PRICE
Hobart£ will see approximately$1.1Bof newprojectscommencingin2025
MEDIAN PRICE Q4 2024
$897K $530K
MEDIAN PRICE Q4 2024
AVERAGE DAYS ON MARKET Q4 2024
54
AVERAGE DAYS ON MARKET Q4 2024
A major infrastructure project set to commence in 2025is the Macquarie Point/Waterfront Railyard ($300.0M). This project will incorporate public and commercial spaces, exhibition centre, accommodation and research centre.
Key residential projects include:
• 1 Queens Walk (65 Apartments)
• 9 StarStreet (12 Units)
• 23-25Kirksway Place (5 Units)
• 227-229Liverpool Street Mixed-Use Development (2 Townhouses)
• 32A Brinsmead Road(4 Dwellings)
These projects will help with supply, especially in the unit market. There is still notenough stand-alone houses in the pipeline, which will put pressure on prices and stimulate a market recovery.
AVERAGE VENDOR DISCOUNT*
Average vendor discount reflects the average percentage difference between the first list price and final sold price. A lower percentage difference (closer to 0.0%) suggests that buyers are willing to purchase close to the first asking price of a property.
Average vendor discounts between Q4 2023and Q4 2024 have tightened to-0.6% forhouses and -0.4% for units. The peak discount period has passed for houses (in Q3 2024). Market conditions in Hobart* still favour buyers, with sellers willing toaccept below the listed prices. Thatsaid Q4 2024average vendor discount is very close to0, which indicate a shift towards a seller’s market. Thus, buyers must act fast to benefit from current discounts.
The suburb of Sandy Bay has outperformed the wider Hobart Local Government Area (LGA) for house prices in the past 5 years and onpar with unit prices. 2024saw this trend continue, even with slower price growth for boththe LGA and suburb, for both property types The suburb of Sandy Bay remains a premium suburb within Hobart property market, especially for houses.
Most of the homes sold in Hobart* across 2024were in the premium price brackets, of $1.0M and above (42.9%) for houses and $700,000 and above (45.1%) for units. House and unit price brackets are very similar to each other and offers options in the middle and affordable price brackets, providing opportunities for buyers with varying budgets.
MARKET COMPARISON
The market comparison graph provides a comparative trend for median price of houses and units over the past 5 years. The main LGA chosen was based on their proximity to the main suburb analysed, which is Hobart.
PRICE BREAKDOWN 2024
Less than $399,999
$400,000 to $499,999
$500,000 to $599,999
$600,000 to $699,999
$700,000 and above
RENTAL GROWTH 2025€
House rental yields in Hobart (7005)¥ was 3.4%as of December 2024,slightly below Hobart LGA(4.0%) and Hobart Metro (3.6%). Thatsaid, median house rental price increased by 3.6%in the past 12 months to Q4 2024,to sit at $580 per week. The number of housed rented declined, by -10.9% (to 408houses), which indicates an undersupplied market. Overall, there is a highlydemanded and competitive house rental market in Hobart¥, which is beneficial to investors.
3+ bedroom houses have provided investors with +3.6%rental growth annually, achieving a median rent of $580per week.
Hobart (7005)¥ recorded a vacancyrate of 0.9%in December 2024, slightly above the Hobart LGA average of 0.7% and Hobart Metro’s 0.6%. Vacancy rates have decreased in the past 12 months, indicating an even tighter rental market. Furthermore, a 0.7% vacancy rate is well below the Real Estate Institution of Australia’s healthy benchmark of 3.0%, indicating a tight rental demand and quicker occupancy of rental properties in Hobart (7005)¥ market With entry / sale prices currently more affordable, this creates an ideal environment for investors.
RENTAL VACANCY RATES 2025
RENTAL YIELD 2025§
¥
Hobart(7005)
Hobart (7005)
Hobart LGA
Hobart Metro
PROJECT DEVELOPMENT MAP 2025 ₳
HOBART
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REFERENCES
* Hobart sales market data and key indicators encapsulates aggregate property market conditions within Hobart Local Government Area LGA.
** Estimated values are based on construction value provided by the relevant data authority and does not reflect commercial and/or re-sale value.
# 2024 encapsulates sales transactions for the 2024 full year (01/01/2024 – 31/12/2024).
€ Annual rental growth is a comparison between Q4 2023 (01/10/2023 – 31/12/2023)and Q4 2024 (01/10/2024 – 31/12/2024) house median rent figures.
¥ Hobart rental market data encapsulates aggregate property conditions within the postcodes of 7000, 7004, 7005, 7007, 7008, 7009, 7050, 7054.
§ Rental yields shown are as reported as of December 2024.
₳ Project development map showcases a sample of upcoming projects only, due to accuracy of addresses provided by the data provider for geocoding purposes.
£ Projects refers to the top developments within the Hobart LGA.
µ Estimated value is the value of construction costs provided by relevant data authority, it does not reflect the project’s sale/commercial value.
ψ Commencement date quoted for each project is an approximate only, as provided by the relevant data authority, PRD does not hold any liability to the exact date.
Source: APM Pricefinder, Cordell Connect database, SQM Research, Esri ArcGIS.
Disclaimer: PRD does not give any warranty in relation to the accuracy of the information contained in this report. If you intend to rely upon the information contained herein, you must take note that the information, figures and projections have been provided by various sources and have not been verified by us. We have no belief one way or the other in relation to the accuracy of such information, figures and projections. PRD will not be liable for any loss or damage resulting from any statement, figure, calculation or any other information that you rely upon that is contained in the material.
Prepared by PRD Research. © All medians and volumes are calculated by PRD Research. Use with written permission only. All other responsibilities disclaimed. © Copyright PRD 2025.
