Hobart has a reputation for being a vibrant food and culture destination, with a beautiful coastline and fascinating history. Now the Tasmanian capital may be about to earn another label – the home of a comparatively affordable housing market. 

As discussed in the McGrath Report 2025, softening median home values meant Hobart finished FY24 as the second most affordable capital city in Australia, according to CoreLogic data, and the only capital to record a median dwelling price fall over the financial year. 

Median house values fell 0.3% to $691,339 in the year to June 30, 2024, while apartment values rose 0.8% to $532,172, according to CoreLogic data.

What’s more, Hobart’s 28.1% dwelling price increase since the start of the pandemic to June 2024 may at face value seem impressive, but in fact represents the second lowest increase of any capital city during this period.

It was a slightly better situation in the state’s regions where there was a 0.7% median dwelling jump in FY24, but this was well below the price increase in most other Australian regional areas. 

Meanwhile, rental yields in Hobart and regional Tasmania finished FY24 at a healthy 4.3% and 4.5%, respectively, with both areas recording yields higher than the national average.

The modest median dwelling price changes, strong rental returns and high stock levels tracking at 46% above average, according to CoreLogic data, means Hobart and regional Tasmania have become attractive propositions for buyers looking for value and returns, in great lifestyle locations.

This is particularly the case for new entrants, who in May 2024 made up just under one third of Tasmania’s residential property buyers. 

From February 18, 2024, eligible first home buyers have been able to avoid paying stamp duty altogether on established homes valued at $750,000 or less. This is saving them $28,900. 

Despite inflation and mortgage rates weighing heavily on everybody’s minds across the country, there is a sense of optimism in Tasmania with a couple of major construction projects underway. 

The new Bridgewater Bridge will make moving between Hobart and the regions to the north easier, in particular the suburbs of Granton on the southern end of the bridge and Bridgewater to the north, which will benefit from improved commuter links to Central Hobart. 

In the state’s north, Launceston has a growing cultural and gastronomic profile. There was a 2.7% drop in median house values to $535,000 in the year to June 30, 2024. Median apartment values performed better with a 2.3% rise to $440,000. 

The silver lining, of course, is for buyers who can now nab a bargain in Launie (as the locals call it).

Devonport is bracing itself for a development boom. A $240 million port upgrade will see a 40% increase in freight capacity and 72,000 additional visitors each year by 2031, according to TasPorts. 

This will boost the local economy, making Devonport a more desirable place in which to live and invest. Median house values held steady at $485,000 in the year to June 30, 2024, while apartment values held on at $386,250, according to CoreLogic data.

Check out my top suburb picks in Hobart, Launceston and Devonport in the McGrath Report 2025.\

By John McGrath, Chief Executive Officer of McGrath Estate Agents. 

For more information including articles, checklists, guides and more visit McGrath’s Insights Centre.

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