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Regional Tasmania Residential Summer 25/26
Economy Key drivers
Residential sales
Residential annual rolling sale transactions tallied to 6,057 in the third quarter of 2025 in Regional Tasmania, up 5% from the previous quarter and 10% higher than a year ago This was shaped by a lower interest rate despite 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 annual average was 5,966 sales.
Share of state annual sales
Regional Tasmania made up 58% of the total number of annual residential sales recorded in Tasmania at the end of Q3 2025 This was higher than one year ago when the proportion was 55%, and above the 54% share recorded five years ago The change in residential sales activity over the past year saw Regional Tasmania (+10%) outpace Greater Hobart (-5%)
Tracking the total number of sales each year
Regional Tasmania
Regional Tasmania, Q3/25
Share of state annual sales, by number
Regional Tasmania
Duration +19 days
Regional Tasmania residential homes averaged 112 days on market in the year ending Q3 2025, from the time they were listed to the day they went under contract This duration was 106 days a quarter ago (+6 days) and 93 days a year ago (+19 days) 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 86 days to sell a home
Tracking average days on the market
Newly advertised property listings in Regional Tasmania were 1.8% lower in the month of September 2025, than the equivalent period last year, as reported by Cotality This change trended above both the -8.5% for the combined regional areas of Australia and -10 3% across Australia
Regional Tasmania’s total number of listings in the month of September 2025 were 16.8% below the equivalent period last year, according to Cotality By comparison, the total listings change were -12.9% across the combined regional areas of Australia and -13 3% Australian-wide
Residential property prices across Regional Tasmania rose by 3 4% in the year ending Q3 2025, with a 2 5% increase recorded in the most recent quarter This brought the average residential value to $533,500, reflecting an overall upward trajectory in housing demand whilst the number of listings remain lowered Annual residential price growth has averaged 10.3% over the past five years.
Looking ahead, McGrath Research anticipates Regional Tasmania residential property prices to increase by 5% by the end of 2025, followed by a further 6% rise in 2026. Factors taken into consideration include the low number of total listings, the upward trajectory of sales transactions and the longer average time being taken to sell a home
Forecast for average prices
Residential rents Update
Vacancy
1.5%
Regional Australia residential rental vacancy was recorded at 1 5% in Q3 2025, falling 2 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
Tracking residential rental vacancy
Regional Australia
Yield +10 bps
Residential gross rental yields rose 2 bps in Q3 2025 to be 4 94% across Regional Tasmania, whilst being 10 bps more than one year ago. Gross rental yields are a good initial measure of comparing the return of a property investment before expenses are deducted. Investment properties with a yield greater than 5% tends to be most desirable for properties located in regional areas, while below this, tends to indicate high property prices relative to rent, or low rental demand Gross rental yields have averaged 4 89% over the past five years.
Tracking gross rental yield
Regional Tasmania
Regional Tasmania, Q3/25
Residential rents Update
Regional Tasmania residential rents rose 1.1% in Q3 2025, while increasing 5 8% over the past year, to stand at $455 per week Low vacancy has kept rents elevated, albeit now rising at a slower pace than previous years On average, over the past five years, residential rents grew 8 8% per year
Tracking average weekly rents Regional Tasmania
Forecast for average rents Regional Tasmania Rental outlook +5%
Whilst the completion of new builds remains low across Regional Tasmania, there remains an undersupply of new homes being added to the rental pool while the population continues to climb As a result, McGrath Research forecast sustained upward pressure on rents of 7% at the end of 2025, with a further 5% 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 National Head of Research, McGrath Research
www.mcgrath.com.au/research
