As we wrap up the 2024–25 financial year, the real estate market across Hobart and Southern Tasmania has shown signs of stability and cautious optimism. Despite a cooling period early in the year, the past 12 months have seen the market regain momentum, offering a more balanced playing field for buyers, sellers and investors alike.
Market Overview: Signs of Stabilisation
After earlier dips in property prices, Hobart experienced a modest 0.6 percent decline in median house values over the financial year, bringing the median to around $651,000. However, confidence returned toward the end of the year, helped along by the Reserve Bank’s first interest rate cut in over four years, contributing to a 0.4 percent monthly rise in February 2025.
In Southern Tasmania, the story was one of increasing activity. The region accounted for almost half of Tasmania’s residential property sales, with 4,603 transactions totalling over $3.19 billion – up 8.8 percent from the previous year. Areas like Kingston, Sandy Bay and Lindisfarne remain popular, driven by lifestyle appeal and strong buyer demand.
Rental Market: Tight Supply and Growing Returns
Hobart’s rental market continued to tighten, with vacancy rates dropping to just 0.6 percent – one of the lowest in the country. This led to an annual increase of approximately 7 percent in house rents, with the median weekly rent now sitting at $600. For property investors, this has reinforced Hobart’s reputation as a high-yielding capital city.
Support for First Home Buyers
A major highlight this year was the Tasmanian Government’s announcement of a boosted First Home Owner Grant, offering $30,000 for eligible individuals building their first home. This initiative aims to support the construction industry and ease housing shortages by encouraging new builds across the state.
Looking Ahead
Looking to the 2025–26 financial year, property experts predict moderate growth in Hobart of 2 to 4 percent. With easing interest rates, strong rental returns and government incentives in play, there’s a sense of renewed confidence in the local market.
Your Local Experts Are Here to Help
Whether you're buying, selling, investing or simply curious about your property's value, the team at First National Real Estate Hobart & Kingston is ready to guide you through the next financial year with experience, insight and care. Contact us today and make your next move with confidence.