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Summer 25/26
Hobart Residential
Economy Key drivers
Residential sales Update
Sales -12%
Hobart residential sale transactions tallied to 880 in the third quarter of 2025, down 12% from the previous quarter In the past year, the total number was 5% lower, reaching 4,339 sales This was shaped by restrictive lending conditions and an overall lower number of properties listed for sale on the market As a benchmark over the past five years, the quarter tally averaged 1,185 sales and annually, this average was 4,724 sales
Tracking the total number of sales each quarter Hobart
from a year ago
Duration -4 days
Hobart homes averaged 78 days on market in Q3 2025, from the time they were listed to the day they went under contract This average duration was 79 days (-1 day) the quarter before and 82 days (-4 days) one year ago A lower number of days on market tends to mean homes are selling faster with more desirable properties, while a higher number of days suggests a slower market with above market values Looking back over the five-year average, it has taken 53 days to sell a home
Tracking average days on the market
Newly advertised property listings in Hobart were 21 9% lower in the month of September 2025 than the equivalent period last year, according to Cotality This change trended below the Australian average of -10.3% and below the -11.2% across Australian capital cities
Hobart’s total number of listings in the month of September 2025 were 35.4% below the equivalent period last year, according to Cotality By comparison, the Australian average change for total listings was -13.3% and across Australian capital cities was -13 6%
Residential property prices across Hobart rose by 7 3% in the year ending Q3 2025, with a 4 2% increase recorded in the most recent quarter This brought the median residential value to $716,500, reflecting a steady upward trajectory in housing demand and underlying resilience in the market. Annual residential price growth has averaged 7 5% over the past five years.
Tracking median prices Hobart
Looking ahead, McGrath Research forecasts Hobart residential property prices to increase by 7% by the end of 2025, followed by a 4% rise in 2026. These projections reflect a mix of ongoing demand from limited housing supply, a lowered number of sales transactions and a shorter average number of days on market
Forecast for median prices Hobart
Residential rents Update
Hobart residential rental vacancy was recorded at 1 7% in Q3 2025, 10 bps lower in the quarter and 50 bps lower 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. Over the past five years, rental vacancy has averaged 1 6% per year
Tracking
Residential gross rental yields rose 8 bps in the Q3 2025 quarter to be 4 63% across Hobart, whilst being 27 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. A yield greater than 4% tends to be considered most desirable for properties located in capital cities, while below this, tends to indicate high property prices relative to rent, or low rental demand Gross rental yields have averaged 4 27% over the past five years
Tracking gross rental yield
Hobart, Q3/25
Residential rents Update
Median weekly rent
Hobart residential rents remained steady in Q3 2025, after increasing 5 6% over the past year, to stand at $565 per week Low vacancy and high migration have kept rents elevated, now rising at a faster pace than previous years On average, over the past five years, rents grew 5 0% per year.
Tracking median weekly rents Hobart
Forecast for median rents Hobart Rental outlook +5%
Whilst Hobart continues to experience tight rental supply and a low delivery of new homes, McGrath Research forecast sustained upward pressure on rents of 6% at the end of 2025, with a further 5% rental growth likely in 2026
Hobart
Hobart refers to the Greater Capital City Statistical Area or ‘Greater Hobart’ as defined by the Australian Bureau of Statistics.
Michelle Ciesielski National Head of Research, McGrath Research
www.mcgrath.com.au/research
