Hobart Property Market Forecast 2025

Is Hobart the right place to invest in 2025?

Investing in property in Hobart, Tasmania, in 2025 will depend on several factors, including market conditions and your individual investment goals. Today, let’s look at the Hobart real estate market’s historical performance and current trends. More importantly, we will explore the property market forecast for Hobart in 2025 to provide you with valuable insights that can lead to more confident decision-making.

Let’s Talk About the Past Performance First

Hobart’s property market has experienced a unique journey over the past few years. After a significant boom in 2021, where growth peaked at nearly 37%, the market began to correct as interest rates climbed in 2022. By early 2023, Hobart’s market had plateaued and remained relatively flat throughout the year. 

After a decline lasting two and a half years, Hobart’s property market has seen an impressive recovery in 2024. In November, prices rose by 0.43% than the previous month, resulting in an overall increase of 1.33% year-on-year, according to the PropTrack report. So, despite that two-year decline, Hobart has shown its property market resilience, making the city a good place to consider for property investment. 

Now, Let’s Focus on Current Trends & Driving Factors

Several key factors currently influence Hobart’s property market:

• Supply Increase: As of September 2024, total listings in Hobart were 46% above the five-year average. That means you have more options as a potential property buyer.
• Slower market pace: According to multiple reports, days on Market (DOM) increased from 32 days in September 2023 to 52 days in 2024, indicating a more slow-moving market. You could use that to your advantage if you’re a first-time homebuyer or investor. A home or apartment unit’s listing price generally becomes more negotiable the longer it remains on the market. 
• Affordability advantage: With property values in other capital cities surging, Hobart now represents strong value relative to Sydney, Melbourne and other capital cities.
• Low vacancy rates: Hobart’s rental market remains tight, with vacancy rates at record lows, placing upward pressure on rental values. That’s a good sign if you plan to buy an investment property in Hobart soon. 

So, What Can We Expect in 2025?

As we look ahead to 2025, Hobart’s property market shows signs of potential growth, though forecasts vary.

PropTrack’s Property Market Outlook report predicts growth between 0% and 3% for Hobart in 2025. This could translate to an increase of up to $21,000 for a typical $700,000 house. The report suggests Hobart may see stronger price growth in 2025 than in 2024 as it starts to look more affordable relative to other capital cities.

KPMG’s Residential Property Market Outlook report forecasts more substantial gains, projecting 5.7% growth for houses and 5.3% for units in Hobart during 2025. This optimistic outlook suggests a potential rebound in the market after a period of stagnation.

SQM Research’s Boom or Bust report offers a more conservative estimate, forecasting a range from a 3% decrease to a 2% increase in Hobart home prices for 2025.

Key factors that could influence Hobart’s property market in 2025 include:

• Interest rate cuts: Based on Hobart property market news, many experts anticipate potential rate cuts in the latter half of 2025, which could improve borrowing capacities and stimulate the market.
• Affordability advantage: Hobart’s relatively lower price growth in recent years may make it more attractive than other capital cities.
• Demand drivers: Hobart’s appeal as a lifestyle destination and the trend towards remote work may continue to attract buyers.

Areas likely to see the biggest increases:

• Battery Point: Due to luxury housing projects and appeal to international buyers, Battery Point, a Hobart suburb, is primed for property market growth.
• Sandy Bay: A prestigious suburb in Hobart, Sandy Bay’s limited housing stock & upcoming renovations to heritage buildings can drive the market growth.
• North Hobart: With ongoing gentrification and new transport links, North Hobart is deemed a real estate hotspot. 

What about property types? Property types expected to perform well in Hobart in 2025 include tech-equipped and energy-efficient homes, family-sized properties in suburban areas, and homes with outdoor spaces. If you’re looking for the same property types, you will likely see viable options in Hobart as sellers try to meet the demand. 

Get More Insights from Hobart’s Top Mortgage Broker

While these Hobart property forecasts suggest potential growth, market performance depends on various factors, including interest rates, economic conditions, and government policies. Prospective buyers and investors should conduct thorough research and seek professional advice before making decisions in Hobart’s property market.

At Deltos Finance, our team of mortgage brokers in Hobart is ready to guide you. As you consider buying your first home, refinancing or investing in property in Hobart 2025, we’re here to ensure you know the best real estate opportunities and exactly how to fund them through tailored mortgage solutions with the best terms and rates.

Contact us today to get started.