Hobart home prices higher than last year

Hobart’s median home value was slightly higher in January 2025 compared to the year prior. Picture: Supplied

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New figures show Hobart home prices are up — if only by a touch.

Despite a 0.46 per cent monthly dip in January, PropTrack’s Home Price Index shows the Hobart market has grown by 0.87 per cent.

Hobart’s median dwelling price, houses and units combined, sits at $670,000, with the report ranking the southernmost capital as the second-most affordable city in Australia.

However, compared to pre-pandemic prices, Hobart’s median value remains 36 per cent higher.

REA Group senior economist Eleanor Creagh said Hobart prices decreased in January and December.

Compared to its most recent peak, she said Hobart is down by 7.78 per cent, despite recovering “some of its two-and-a-half-year decline in the second half of 2024”.

Prop Track senior economist Eleanor Creagh

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Harcourts Signature property representative Mark Brudenell said there are buying opportunities for young people in greater Hobart, especially when they know where to look.

He and Alex Muller have land listed at New Norfolk, Hudson Grove, where a first-time buyer could save tens of thousands.

The developer is offering some rebates of up to $30,000.

In time, the subdivision will offer dozens of lots, but there are five with titles ready today.

“Combine our vendor’s rebate with the government’s home builder’s grant, the MyHome Scheme to build with a 2 per cent deposit, and local builder Ronald Young & Co is offering of a $10,000 appliance upgrade. FHBs could save a fortune,” Mr Brudenell said.

“These blocks start at about $200,000, a good $100,000 less than smaller lots that are closer to Hobart city.

“There may never have been a better time to buy land and build.

“There is a lot of excitement among the potential buyers we have spoken with so far.”

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Alex Muller and Mark Brudenell from Harcourts Signature.

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Land at Hudson Grove in New Norfolk starts at a sharper price than blocks in Hobart city and its surrounding suburbs.

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A number of Hobart agents have said to the Mercury that an interest-rate cut will shore up stability in the market, and bring improved buyer confidence.

Predictions from the Big Four banks on when and how many times the RBA could cut the cash rate vary from February to May, and as few as two rate reductions or up to five.

NAB expects a 25bps cut this month and the RBA to take the cash rate down to 3.1 per cent by February 2026.

NAB executive for home lending, Denton Pugh, said while the labour market remains strong, the bank does not see current conditions as inflationary.

“We now expect the RBA to cut interest rates in February, which would mark the start of the central bank’s gradual easing of the official cash rate,” he said.

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Mr Brudenell said interest rate relief is imminent.

He said they have seen a lot of buyers sitting on the sidelines and waiting over the past year, but he said rate cuts would be a catalyst for transaction growth.

“It could spike. We may see demand increase significantly,” he said.

“There is a current and growing trend where people are looking for climate relief by moving to Tasmania.

“People want to escape places like South East Queensland and its oppressive heat and humidity.”