Tasmania’s 10 best and worst property markets, and what’s hot into 2025
Tasmania's property market is entering an uncertain and turbulent time, but a reversal of price declines points towards the state's real estate again becoming a target of investors.
The Hobart and broader Tasmanian property market would appear to be back in the game.
As the state readies itself for the arrival of its new AFL football team, investors are once again looking to the Apple Isle as they try to achieve their financial goals.
After a two-and-a-half-year decline, prices in Hobart have made a stunning turnaround.
Prices continued to recover in November, rising 0.43 per cent over the month to now sit 1.33 per cent higher than the same time last year, according to PropTrack.
It is the first time Hobart has recorded positive annual growth since October 2022.
The game still has a long way to play out though.
Hobart remains the weakest capital city market when comparing change from peak, with prices down 7.22 per cent, despite having recovered a fifth of their decline in the past seven months.
It also differs markedly from other capital cities, where strong price gains over the past two years have largely been driven by skyrocketing prices in the more affordable outer suburbs.
Currently, the Hobart median home price is $654,339 according to CoreLogic’s latest data, compared to a national median of $800,000.
But when it comes to Tasmania, nine of the ten worst performing suburbs for capital growth in 2024 have been locations with average prices below that mark.
BOTTOM 10: Worst median price performance
| Suburb | Sales | Median | Annual change |
|---|---|---|---|
| SEVEN MILE BEACH | 5 | $920,000 | -42.3% |
| SHOREWELL PARK | 14 | $346,000 | -29.4% |
| SCOTTSDALE | 14 | $432,500 | -29.1% |
| MIANDETTA | 6 | $515,000 | -23.1% |
| SMITHTON | 17 | $370,000 | -22.9% |
| TREVALLYN | 11 | $556,000 | -22.8% |
| EAST DEVONPORT | 7 | $385,000 | -19.8% |
| PENGUIN | 15 | $655,000 | -19.6% |
| CLAREMONT | 19 | $495,000 | -17.5% |
| LATROBE | 19 | $500,000 | -17.0% |
Source: REIT
In Tasmania, where home values have flatlined for the past two years, home sales have trended slightly higher through spring relative to a year ago.
Russell Yaxley, Real Estate Institute of Tasmania’s State President, told API Magazine that there had been a marked increase in activity in the form of enquiries, open home attendances, time on market reductions, leading into the last quarter of 2024.
“Coming out of the traditional quieter winter months, and add to this the looming interest rate reductions, the market has recognised now is the time to buy in Tasmania.
“Investing into property in other states is increasingly becoming more difficult whether it’s achieving capital growth in markets at or near their peak, rental returns or government requirements, so we’re seeing Tasmania becoming a target once again with its excellent capital growth and stable rent returns.”
He also identified the suburbs he believed could outperform the wider market in the next year or two and the sporting analogies were justified by his selections.
“In the south, Oakdowns, Rokeby and Glebe are seeing new property developments bloom, Moonah and Glenorchy have recently made available the opportunity for medium residential developments, and with the National Basketball League’s Tasmania JackJumpers and the AFL’s Tasmania Devils high performance centre being confirmed for Kingborough Council, suburbs like Kingston, Margate, Taroona, Blackmans Bay will become popular too.
“In the North, Newstead with its proximity to Launceston city, Mowbray, Invermay and Newnham are close to the university campus, Norwood and Riverside for capital growth and Ravenswood and Rocherlea are seen as the most affordable are suburbs that might outperform others.”
TOP 10 median price growth suburbs (quarterly)
| Suburb | No of Sales | Median price | % Median change Jun-24 to Sep-24 |
|---|---|---|---|
| SOUTH HOBART | 11 | $972,000 | 29.1% |
| SCOTTSDALE | 14 | $432,500 | 25.4% |
| EVANDALE | 10 | $766,500 | 24.6% |
| LAUDERDALE | 10 | $952,500 | 23.4% |
| PENGUIN | 15 | $655,000 | 18.6% |
| TAROONA | 8 | $1,045,000 | 18.1% |
| WEST ULVERSTONE | 15 | $599,500 | 15.3% |
| LENAH VALLEY | 8 | $810,000 | 12.5% |
| KINGS MEADOWS | 16 | $586,000 | 12.2% |
| WEST LAUNCESTON | 13 | $660,000 | 11.9% |
Source: REIT
TOP 10 median price growth suburbs (annually)
| Suburb | No of Sales | Median price | % Median change Sep-23 to Sep-24 |
|---|---|---|---|
| SOUTH HOBART | 11 | $972,000 | 54.3% |
| BEACONSFIELD | 5 | $555,000 | 54.2% |
| LAUNCESTON | 12 | $772,500 | 27.4% |
| KINGS MEADOWS | 16 | $586,000 | 26.0% |
| WEST LAUNCESTON | 13 | $660,000 | 24.5% |
| GRANTON | 5 | $915,000 | 20.4% |
| CYGNET | 9 | $671,500 | 15.8% |
| OLD BEACH | 19 | $740,000 | 13.8% |
| SANDFORD | 5 | $1,045,000 | 13.0% |
| ROKEBY | 18 | $646,000 | 11.1% |
Source: REIT
Price movements in Hobart have been on the volatile side this quarter. CoreLogic data showed a large, sudden and perhaps surprising monthly dwelling value turnaround from -0.4 per cent in September to +0.8 per cent to end of October, before levelling out again in November.
As to whether the upswing, or at least an arrested slide, is a sustainable sign of a major turnaround is yet to be seen.
Jack McCarthy, Sales Manager, View Real Estate Launceston, is yet to be fully convinced.
“I do not believe it is a sign of a major turnaround point, with the market slowly accepting the new reality of interest rates remaining high and cost of living not changing any time soon.
“We are finding most clients we are dealing with are second home buyers, downsizers or people looking to move closer to the city and with more parties looking the competition is starting to show in the market again assisting in the achievement of higher prices,” he told API Magazine.
Interstate investors in Launceston were thin on the ground, he added.
“I strongly believe we are moving into an unknown market and trying to predict its immediate direction is quite unrealistic.”
Vacancy rates tightening
REBAA Tasmania State Representative, Sam Spilsbury, said Tasmania’s property market in 2024 had remained relatively stable following a period of adjustment after significant interest rate hikes and affordability concerns.
“While many buyers and investors have adopted a more cautious approach, the state’s inherent appeal continues to drive demand, underpinned by its unique lifestyle offerings, natural beauty, and ongoing infrastructure development,” Ms Spilsbury said.
“Despite a drop in prices, the number of sales has increased by 19 per cent over the past 12 months, signalling a robust demand for property across the state.”
Ms Spilsbury said rental demand has also surged this year, contributing to a decline in vacancy rates statewide.
“Tasmania’s vacancy rate fell from 2.4 per cent to 2.1 per cent over the year, with notable increases in rental prices across key areas,” she said.
Infrastructure development is always a worthy variable to consider when looking for investment potential, placing the northern city of Devonport in the radar.
It is being revitalised as part of the Living City project, with a new $55 million waterfront precinct including a hotel, amphitheatre, events common, parks, playgrounds and pathways.
Regardless of what the market is doing, Tasmanian homeowners are a happy bunch.
When Australian residents were asked in a Great Southern Bank survey to rate their home against factors including its location and condition, Tasmanians were revealed as the happiest with their overall living situation (54 per cent), followed by Australian Capital Territory (46 per cent) and South Australia (43 per cent).
