Find Finance & Mortgage Brokers in Hobart

Find Clarity in the Hobart Loan Market Hobart is Australia’s second oldest capital city and Tasmania’s largest, positioned on the Derwent River estuary with Mount Wellington forming a dramatic backdrop. The city’s property market has undergone significant adjustment after peaking in March 2022, experiencing 2.5 years of price declines driven by apartment oversupply, slowing population growth (0.28% in 2024, Australia’s lowest), and interest rate sensitivity affecting the state’s higher median price points. However, the market showed resilience in late 2024 and early 2025, recording positive annual growth of 1.33% by November 2024 for the first time since October 2022.

The housing stock includes character Federation and Georgian homes in established suburbs like Battery Point and Sandy Bay, modern developments in growth areas like Glenorchy and Kingston, and abundant apartments throughout the CBD and waterfront. The market is characterized by affordability relative to mainland capitals with median dwelling prices around $654k, making it 40% cheaper than Sydney and attractive to interstate lifestyle seekers. The rental market remains robust despite price corrections, with vacancy rates at 2.1% (down from 2.4%), median rents at $600 weekly for houses (up 7%) and strong yields of 4.4% attracting investor interest.

Major developments include proposed world-class entertainment precinct and roofed stadium for Tasmania’s AFL team entry, and Hobart Airport infrastructure expansion for international flights, which could catalyze economic growth. Hobart appeals to retirees seeking lifestyle and affordability, government workers, young professionals attracted to emerging cultural scenes in suburbs like North Hobart and Moonah, and investors seeking yield over capital growth. The market faces challenges including Tasmania’s forecast 1.1% decline in gross state product for 2024/25, housing construction falling 600 dwellings behind quarterly targets, and economic uncertainty.

However, the combination of improved affordability, stabilizing rental market, lifestyle appeal, and potential infrastructure catalysts creates opportunities for strategic buyers and investors willing to take a longer-term view on market recovery.