Explore Hobart’s real estate boom in 2025, rising home prices, migration trends, and why Tasmania is attracting more Aussies seeking lifestyle and affordability.
Introduction
Hobart’s real estate market is experiencing a notable boom in 2025, driven by rising demand and increasing migration to Tasmania. As more Australians seek affordable housing combined with an enviable lifestyle, Hobart is becoming a hotspot for property investment and family living.
Hobart’s Real Estate Market in 2025: Growth Amid Affordability
After several years of modest activity, Hobart’s property market is showing steady signs of recovery and growth. The median house price in Hobart is currently around AUD 715,000, with a 1.4% annual increase reflecting growing confidence. Units are slightly more affordable but stable, averaging about AUD 555,000.
Despite rising prices, Hobart remains one of Australia’s more affordable capital cities compared to Sydney and Melbourne, drawing first-home buyers, investors, and interstate migrants keen on value for money. Key suburbs such as Moonah, Kingston, and North Hobart are leading growth, benefiting from infrastructure upgrades and population inflows.
Low vacancy rates (around 0.6–0.9%) and strong rental yields up to 6.2% make Hobart attractive for investors. Meanwhile, gradual price appreciation suggests a balanced market, avoiding drastic bubbles seen elsewhere.
Migration and Lifestyle: Why Aussies Choose Tasmania
Tasmania’s appeal extends beyond housing affordability. Hobart’s population growth is driven by interstate migration from mainland states, with people seeking a safer, relaxed lifestyle amid scenic coastal and urban environments. Tasmania offers:
- A slower pace of life with less congestion and strong community ties
- High-quality healthcare accessibility and expanding education options
- Rich culture, renowned food and wine scene, and outdoor recreation opportunities
- Growing infrastructure projects enhancing connectivity and amenities
Tasmania’s island living and sustainability initiatives resonate with remote workers, retirees, and families prioritizing wellbeing and a balanced lifestyle. Hobart’s increasing popularity is partly due to this combination of economic opportunity and enviable quality of life.
Outlook and Investment Opportunities in Hobart
Looking ahead, experts forecast moderate but steady growth of 2–3% in Hobart’s property market through 2025. Major infrastructure projects, including urban renewal and transport upgrades, underpin this positive outlook. Proposed developments like a world-class entertainment precinct and airport expansion could further boost demand and economic prospects.
For investors and new residents, Hobart represents a promising opportunity: growing population, affordable entry points, rental demand, and lifestyle advantages converge to support long-term value.
Conclusion
Hobart’s real estate boom is fueled by rising housing demand, affordable prices compared to mainland capitals, and Tasmania’s unique lifestyle benefits. As more Australians relocate seeking a balanced, healthy life, Hobart solidifies its position as a thriving, attractive city for families, investors, and migrants alike.
