Prices set to sizzle this summer!
The Hobart property market is brimming with opportunity for buyers and investors as we enter 2025. According to the McGrath Report 2025 by property expert John McGrath, Tasmania’s capital city could soon stand out as one of Australia’s most affordable yet promising housing markets. While Hobart experienced a slower market in 2024, McGrath sees this softening as a potential advantage for astute investors.
Affordable Capital: Hobart’s Competitive Advantage
Hobart finished FY24 with Australia’s second-most affordable capital city median house price, creating a growing sense of optimism in the market. Major infrastructure projects, such as the Bridgewater Bridge and the proposed Macquarie Point Stadium, are expected to boost the city’s appeal. These developments are set to transform Hobart’s waterfront, increasing interest from both local and international buyers.
A key consideration for investors and homeowners is Tasmania’s first-homebuyer duty concession, which applies to homes under $750,000. This, alongside new infrastructure, could help boost population growth, which has been slower in Tasmania than in other states. With property prices expected to rise as Hobart’s attractiveness increases, now could be an optimal time to enter the market.
Top Hobart Suburbs for Investment in 2025
1. Kingston
Known for its beachside lifestyle and easy access to Hobart’s city centre via the Southern Outlet, Kingston is primed for development. The area has ample land available, and with discussions about a potential performance centre for Tasmania’s new AFL club, Kingston could soon become a hot property spot.
2. North Hobart
North Hobart attracts a younger, vibrant crowd thanks to its nightlife and trendy dining options. Recent luxury developments, such as The Rox, are expected to lift the suburb’s profile, likely driving the median property price closer to the million-dollar mark.
3. Launceston’s Growth Story
Launceston continues to grow in popularity, thanks to its reputation for cultural and culinary attractions. Although the city experienced a modest price dip of 2.7% in 2024, its affordability combined with growth potential—especially in apartment values—makes it an appealing investment option for 2025.
4. Devonport’s Development Boom
On the north coast, Devonport is on the cusp of a major upswing, thanks to a $240 million port upgrade. This development is expected to boost the local economy and increase the city’s appeal. With some of the lowest home values in the state, Devonport offers an accessible and promising investment opportunity.
Why Now Could be the Ideal Time to Buy or Sell
1. Quick Sales Pace
Properties are selling quickly across Tasmania, with many spending fewer than three weeks on the market. High buyer interest is driving demand, which can result in swift and profitable sales for homeowners.
2.Strong Buyer Competition
With an average of five offers per property, buyers are clearly serious, often engaging in bidding wars to secure their desired home.
3. Low Inventory, High Demand
While the number of available homes remains relatively low, this is expected to rise gradually. Sellers might benefit from listing soon to capture buyer attention before more properties come onto the market.
4. Ideal Conditions for Moving Up
Homeowners have seen a boost in equity over the past year, combined with historically low mortgage rates. However, experts anticipate that these low rates won’t last indefinitely, making now an opportune time for those considering an upgrade.
In summary, Hobart’s real estate market in 2025 presents a compelling mix of affordability, growth potential, and high buyer demand. From Kingston’s beachside charm and North Hobart’s lively scene to Devonport’s economic expansion, Tasmania’s property market offers a diverse range of opportunities for both investors and buyers. With favourable conditions in place, 2025 may prove to be an ideal year for those looking to make their move in the Hobart property market.
