MIX Property Group BLOG

The 2025 property data shows a clear shift in momentum across Hobart. After a few years of cooling and caution — driven by higher interest rates and affordability pressures — more investors are returning to the market. 

Here’s how this resurgence of investment activity is shaping Hobart’s real estate landscape — and what it could mean for you, whether you’re a home-buyer, landlord or seller.

What’s behind the return of investors

• According to recent industry data, investor activity in Tasmania surged by 41.5% in one quarter, marking the strongest performance in three years. 

• Lower borrowing costs have helped. As interest rates dropped, more people found themselves able to borrow — increasing demand from both owner-occupiers and investors. 

• Attractive rental returns are also a draw. For example, house-rental yields in Hobart have been competitive compared to many mainland capitals. 

• At the same time, a tight rental supply — with very low vacancy rates — is pushing rental prices up. That increases the appeal of holding properties for income, rather than just capital growth. 

In short: better borrowing conditions + strong rental demand + limited rental supply = a powerful incentive for investors to return.

Market Impact: Prices, Demand & Rentals

— Property Prices Are Slowly Rebounding

• Home prices in Hobart have seen modest growth. Recent data shows prices rising by around 2.5 % over the past year, with median house price now around A$715,000.

• Once-quiet suburbs are now showing renewed interest as investor and first–home buyer competition increases. 

— Competition for Properties Is Heating Up

• Agents are seeing more offers on homes: properties are attracting larger numbers through open homes and often receiving numerous offers — a pattern reminiscent of the 2021–2022 boom years. 

• This rising demand is putting pressure on supply, which further drives up price expectations, particularly in the outer-suburbs and growth corridors. 

— Rental Market Intensifies

• With vacancy rates very low, and rents rising sharply, the rental market in Hobart has become extremely competitive. 

• For investors, that means rental properties are increasingly attractive: income is good, demand high, and long-term holding becomes more viable. For prospective tenants, affordability is becoming a concern — fewer choices, higher rents, more competition.

What This Means for Different Stakeholders

 For Property Investors

• It’s an attractive time to buy: rental yields are solid, and demand for rentals is strong.

• With home prices only moderately rising, the risk of overpaying is lower than in overheated markets, while upside remains.

• Outer-suburbs and growth corridors may offer the best balance of yield and capital growth — especially as main central suburbs become more competitive.

 For First-Home Buyers & Owner-Occupiers

• Competition from investors means you may be bidding against more buyers — which can drive up prices even for entry-level homes.

• On the flip side, demand and investor activity add confidence to the market, which can support steady long-term growth rather than volatile booms and busts.

For Renters

• Rising rents and tight rental supply may make it harder to find affordable accommodation.

• Long-term tenants may face increasing pressure, especially in popular suburbs — and may need to act fast when rental properties become available.

What’s Next for Hobart — Risks & Opportunities

• As investor demand grows, supply constraints (especially in rentals) could sharpen — leading to further price and rent rises. That’s good for landlords and investors, but harder for tenants and first-home buyers.

• Infrastructure and development plans around Hobart could shape which suburbs become hot spots. Areas with new amenities or growth potential may outperform others. 

• For anyone considering a property purchase — either as an investment or to live in — now seems to be a moment where early action could pay off, before prices climb further.

Reach out to the team at MIX Property Group if we can help with your property needs.