Hobart's home values continue to edge higher, up 2.7% over the 12 months to October, largely driven by lower listing volumes.
NAB's quarterly property market report noted house listings were down 31.6% while unit listings were down 38.1% compared to a year ago. It concluded constrained supply is stabilising the city's home values, even though demand remains patchy.
Hobart's median property price remains 9.5% below its post-pandemic peak of March 2022, according to Cotality data, when interstate migration fuelled a mini-boom in some markets.
However, the latest official population data shows Tasmania's annual growth rate was the lowest of all Australian states and territories, recording a 12th consecutive quarter of net interstate migration outflow.
Despite this, Hobart's rental vacancy rate remains below 1%, with house rents climbing 6% and unit rents 6.9% higher over the past 12 months.
Gross rental yields are currently at 4.4%, according to Cotality data, the highest of any capital city behind the boom market of Darwin.
We asked Hobart property experts to give their tips for the suburbs to watch in 2026.
(Note: median price data from realestate.com.au)
Geilston Bay, 7015
Median price: $725,000 for houses; $585,000 for units
Median rent: $620 per week for houses; $597 per week for units
The suburb of Geilston Bay on the eastern shore of the Derwent River is the first pick of Angie Roberts, Director of My Hobart Home Buyers Agents.
It also made last year's Hobart Suburbs to Watch list, specifically for its potential for investors.
Indeed, Geilston Bay's median unit price has seen a sizeable 8.9% jump over the past 12 months while houses have lifted 3.9%.
Ms Roberts said the suburb offers a more affordable alternative to neighbouring Lindisfarne [median house price $765,000] and is well positioned for easy access to the city via Tasman Bridge and the northern suburbs via Bowen Bridge.
"There are also new home options available with recent developments in the suburb offering investors strong rental yields and depreciation benefits," Ms Roberts said.
She's tipping increased interest in the area with the planned expansion of the River Derwent Ferry Service into neighbouring Lindisfarne, scheduled to begin operations some time before 2028.
Moonah, 7009
Median price: $637,500 for houses; $457,000 for units
Median rent: $560 per week for houses; $475 per week for units
Moonah, located about six kilometres north of the Hobart CBD, was another selection on last year's list, when it was tipped to outperform the city's wider market in 2025.
That wasn't far from the mark with the suburb's units seeing 5.1% growth over the past 12 months and the median house price rising 4.5%.
Ms Roberts said Moonah and neighbouring West Moonah are benefiting from the surging popularity of nearby suburbs New Town and Lenah Valley, but they remain relatively more affordable.
"There's been continued gentrification of the area with the opening of cafes, breweries, etc. and this should see the area continue to gain in popularity," Ms Roberts said.
Moonah is mostly a residential suburb although there are industrial zones as well as a major office for the state water company TasWater.
The suburb is also home to the lively Moonah Arts Centre, a multi-arts hub, that hosts exhibitions, live music, theatre, and workshops.
Angie Roberts, Founder & Buyers Agent, My Hobart Home
Blackmans Bay, 7052
Median price: $854,444 for houses; $620,000 for units
Median rent: $600 per week for houses; $497 per week for units
Ms Roberts said Blackmans Bay, a coastal satellite suburb of Greater Hobart, offers a lifestyle that many people moving to Tasmania are striving for.
Located on hills surrounding a popular sandy beach, Blackman's Bay is around 17 kilometres from the Hobart CBD and, according to Ms Roberts, an easy commute to the city.
"It also offers ready access to beaches, coastal walks, and stunning river views at a price that is not attainable in other capital cities," she said.
Unit prices in Blackmans Bay have seen a 7.1% jump in price over the past 12 months although its house values have lost ground, with the median price falling 5.1% over the same period.
Rents for both houses and units have grown only modestly over the past year at 1.7% and 1.5% respectively.
Apart from its natural charms, Blackmans Bay has a good selection of primary schools - two public and a Catholic school - as well as local conveniences including a shopping centre and several restaurants.
Claremont, 7011
Median price: $558,000 for houses; $465,000 for units
Median rent: $520 per week for houses; $450 per week for units
The residential/semi-rural suburb about six kilometres north of the Hobart CBD has been nominated by David Zerna, director of Timar Buyers Agency based in Hobart.
Mr Zerna particularly likes what's known locally as the Cadbury Estate, a 1920s development to provide housing for workers of the newly constructed Cadbury chocolate factory - one of Claremont's landmark sites.
The Cadbury Estate was based on the village model of Cadbury's Bournville estate in Birmingham, England with the 100-hectare peninsula site accommodating the factory, recreational facilities, shops, a school, and workers' cottages.
Mr Zerna says the locality will benefit greatly from large major infrastructure projects underway in Hobart's northern suburbs, including upgrades to the riverfront and a new Claremont Park and Ride facility on the Claremont Link Road.
"It's already gentrifying and the area already has strong services," Mr Zerna said.
"For investors, the vacancy rates are very low - right now, there are just eight homes on the market for rent so the vacancy rate is less than 1%."
For home buyers, Mr Zerna said it is hard to go past houses on large blocks that are selling for under $600,000 within walking distance to the waterfront.
"I think it will be one of those suburbs that in a few years' time people will say they should've bought into when the prices were so affordable," he said.
David Zerna, Director & Buyers Agent, Timar Buyers Agency
Kingston, 7050
Median price: $738,000 for houses; $615,000 for units
Median rent: $620 per week for houses; $500 per week for units
Kingston is the site of the new Tassie Devils AFL team's training facility and Mr Zerna believes the outer suburb to Hobart's south is set to cash in on the buzz.
Already Mr Zerna has facilitated home sales in the area for players, officials, and even fans moving from the mainland to get the long-awaited Tasmanian team up and running to join the AFL in 2028.
In the meantime, both the men and women's teams will cut their teeth in the competitive Victorian Football Leage (VFL) and VFL Women's (VFLW) comps from 2026 and will do their training at the Kingston Twin Ovals precinct.
While the future of a new AFL stadium in Tasmania has turned into a political football, the state government has released plans for an AFL High Performance Training Centre at the Kingborough Sports Precinct which will become the Devils' home base.
The precinct is already home to Tasmania's National Basketball League team, the Tassie Jackjumpers.
"There are already plans to commercialise the new facilities and I think it will give the area a real bump and make it buoyant for the years to come," Mr Zerna said.
He said Kingston is a good location for investors and a great option for first home buyers who get a state stamp duty waiver on homes up to $750,000.
See also: Stamp Duty Calculator
For those who can afford to pay above the median, the Kingston waterfront offers a selection of in-demand houses and units, offering scenic views and ready access to water activities.
Kingston, Tasmania. (Image by Josie Brown via Unsplash)
Battery Point, 7004
Median price: $1,400,000 for houses; $732,500 for units
Median rent: $805 per week for houses; $550 per week for units
Here is one for interstate investors perhaps looking to dip their toe into the high-end Tasmanian market.
Battery Point holds the mantle of Hobart's most expensive suburb although its median prices are well below the heady peaks of Tassie's interstate migration boom.
Back in 2023, Battery Point's median house price was $2.2 million while units once fetched a median of $940,000 at the beginning of the pandemic lockdowns of 2020.
The exclusive enclave of Battery Point has been nominated by national property investment figure John McGrath, founder of McGrath Estate Agents.
According to Mr McGrath, Hobart's most prestigious suburb is "trading at a discount".
Battery Point's house prices have climbed modestly from a median low of $1,257,500 in July 2024 while median unit prices have plunged by almost $200,000 in just over 18 months.
"Opportunity abounds in this iconic locality just footsteps from Salamanca Market and Hobart CBD," Mr McGrath said.
Battery Point, just south of the CBD, features premium heritage cottages and is widely considered the best-preserved colonial-era pocket in Australia.
Its waterfront location and shops, cafes, and restaurants mark it as a popular tourist destination, adding vibrancy to the quaint and secluded neighbourhood.
Midway Point, 7171
Median price: $620,000 for houses; $510,000 for units
Median rent: $580 per week for houses; $450 per week for units
Midway Point, located on its own small peninsula, is another pick of Mr McGrath for its strong growth prospects.
The Tasman Highway (Route A3) runs through the southern tip of the locality, offering ready access to both Hobart Airport and the historic town of Sorell.
"With the $47 million Hobart Airport Interchange complete and the $187 million causeway duplication progressing, Midway Point is becoming one of Hobart's most connected suburbs," Mr McGrath said.
"What's more, a relatively affordable median dwelling price means Midway Point offers strong growth prospects as infrastructure catches up with demand."
Indeed, the recent projects are doing their job in easing traffic concerns and at around 20 kilometres to the Hobart CBD, Midway Point offers a convenient highway commute.
One of the benefits of being surrounded by water is the locality's access to multiple bay views - a boon for property values.
Midway Point can offer a peaceful retreat for those looking for a more relaxed lifestyle.
There have also been some recent property development projects in the suburb - one multi-staged development is currently offering vacant land as well as house and land packages.
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| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Extra Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
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5.93% p.a. | 5.93% p.a. | $2,975 | Principal & Interest | Variable | $0 | $395 | 70% | Disclosure |
