Hobart TAS Property Investment

Hobart has compounded at 4.6%/yr over 5 years — a house that cost $825,757 in 2021 is worth $1,033,977 today. Properties are sitting on market for 35 days (roughly balanced conditions). At the same growth rate, today's median reaches $1,294,700 by 2031.

• Median house: $1,033,977 | Units: $740,493
• Gross yield: 3.5% | Net yield: 2.0%
• 5yr price CAGR: 4.6%/yr | 3yr forecast: 1.4%/yr
• Population: 3,390 | Owner-occupier rate: 55% | Affluence: Very High

• Supply pipeline: Moderate — Development activity consistent with long-term averages

• Vacancy: 1.8% (stable) | Rental demand: High
• Median weekly rent: $690/wk | Days on market: 35 (stable)
• Landlord market — rents likely to keep rising.

• Median nightly rate: $219/night | Occupancy: 35%
• Estimated annual STR gross: ~$28,123/yr
• vs long-term rent: $35,880/yr (comparable — LTR offers simpler management)

• Hobart Airport Master Plan - Terminal Expansion (under_construction)
• Macquarie Point Development (approved)
• Tasmanian Health and Medical Research Precinct (approved)
• Southern Suburbs Demand Management Project (under_construction)
• Transport: Glenorchy station 7.0km away

If Hobart maintains 3%+ annual growth and vacancy stays below 1.3%, median prices could reach $1,189,074 within 3 years with yields compressing slightly as capital values rise.

A market correction or interest rate shock could see prices in Hobart pull back 10-15% from $1,033,977, with vacancy rising to 3.2% and rental yields softening as tenants gain leverage.

• No significant risk factors identified for this suburb

• Mount Stuart (TAS): $908,113 median, 3.9% yield, 0.6% 1yr growth
• Taroona (TAS): $974,724 median, 3.9% yield, 10.4% 1yr growth
• Sandy Bay (TAS): $1,279,038 median, 3.2% yield, 8.3% 1yr growth

Hobart presents a compelling investment opportunity. The combination of solid fundamentals and high rental demand supports entry at current price levels. Proceed with due diligence on specific properties. Target gross yields above 3.5% and prioritise properties with value-add potential. Consider timing entry around the current stable phase of the market cycle.

• Entry range: $930,579 – $1,137,375
• Minimum gross yield to target: 4.5%
• Watch signal: vacancy staying below 2% and days on market falling below 35

This analysis is for informational purposes only and does not constitute financial, legal, or investment advice. Seek professional advice before making investment decisions.