Kingston Beach was the only $1m-plus Hobart suburb to make the top-performing suburbs list. Picture: Linda Higginson
House values have surged by double-digits in eight Hobart suburbs, led by a prestige beach area.
PropTrack data shows Kingston Beach houses recorded a 32 per cent increase in median sale price over the past 12 months.
A typical Kingston Beach house is now $1.125m. It was the only Tassie suburb among the top performers to have a median exceeding $1m.
Northern suburb Berriedale was the next best, with a 20 per cent uptick during 2025’s interest rate-cutting cycle.
Nearby Chigwell recorded a 15 per cent increase, followed by Mornington (14 per cent) and Bridgewater (12 per cent).
In the units market, Glenorchy was the top suburb with its median sale price rising by 12 per cent to reach $495,000.
Bellerive units also had a double-digit increase of 11 per cent to $630,000.
The Reserve Bank of Australia cut rates three times last year before higher inflation triggered a backflip and a rate increase was announced in February.
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No.76 Beach Rd, Kingston Beach is listed with Nest Property at $980,000-plus. Picture: realestate.com.au
No.187 Cambridge Rd, Mornington is priced at “Offers over $650,000”. Crowther Richards Real Estate. Picture: realestate.com.au
REA Group executive manager of economics Angus Moore said lower interest rates played a major role in where prices rose and by how much, but affordability constraints, market momentum and investor activity were also key factors.
“What people can afford, which is a function of interest rates and incomes, is the key driver of home prices,” he said.
“Rate cuts we saw last year boosted borrowing capacities and that has been an important factor supporting home prices.”
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REA Group’s Angus Moore.
In Hobart’s Top 10 performing suburbs for houses, most were areas that had a median lower than greater Hobart’s median.
“The theme we have been seeing in recent years is the outperformance of more affordable homes,” Mr Moore said.
Real Estate Institute of Tasmania president Russell Yaxley said some suburbs will always outperform others because the property market doesn’t move in a straight line across a region or state.
“There are pockets that do better because of affordability, supply, buyer demand and local conveniences and infrastructure,” he said. “It doesn’t surprise me that many of the strongest suburbs sit below the greater Hobart median, because affordability really matters in Tasmania right now.
“Affordability and value for money are still the biggest drivers.”
No.13 Junee St, Chigwell is priced at “Offers over $479,000” with Belle Parker @ Homes. Picture: realestate.com.au
Mr Yaxley said the market is still seeing demand from people moving to Tasmania for lifestyle and work, and this is keeping prices strong in a lot of suburbs.
“First-time homebuyers have the best opportunity to enter the market right now with an array of incentives,” he said.
“Investors are active too, especially in suburbs with better rental returns and low vacancy rates.”
Real Estate Institute of Tasmania president Russell Yaxley.
At a national level, recent data suggested more buyers were upgrading relatively quickly in areas where prices had grown rapidly, Mr Moore said.
“There’s been quite a significant increase in low LVR borrowing — sub 60 per cent — which would be consistent with people upgrading with big equity behind them,” he said.
“Areas that have seen strong price growth have also seen a higher share of people selling relatively quickly, which could be consistent with people upgrading sooner than they had planned to.”
Meanwhile, PropTrack’s latest Home Price Index has revealed that regional Tasmania has its highest median home price on record, and Hobart is banging on that door, being just 0.2 per cent shy of its record.
No.5 Kilander Crs, Berriedale is listed with South Property Group for $739,000-plus. Picture: realestate.com.au
| PRICE GROWTH IN THE INTEREST RATE CUT CYCLE | ||||||||
| HOUSES | Suburb | Median | Annual growth | |||||
| 1 | Kingston Beach | $1,125,000 | 32% | |||||
| 2 | Berriedale | $650,000 | 20% | |||||
| 3 | Chigwell | $550,000 | 15% | |||||
| 4 | Mornington | $630,000 | 14% | |||||
| 5 | Bridgewater | $470,000 | 12% | |||||
| 6 | Howrah | $808,000 | 11% | |||||
| 7 | Austins Ferry | $670,000 | 11% | |||||
| 8 | Claremont | $580,000 | 10% | |||||
| 9 | Margate | $866,000 | 9% | |||||
| 10 | Sorell | $720,000 | 9% | |||||
| UNITS | ||||||||
| 1 | Glenorchy | $495,000 | 12% | |||||
| 2 | Bellerive | $630,000 | 11% | |||||
| 3 | Howrah | $657,000 | 8% | |||||
| 4 | Blackmans Bay | $640,000 | 5% | |||||
| 5 | Kingston | $627,000 | 4% | |||||
| 6 | Rokeby | $630,000 | 3% | |||||
| 7 | Brighton | $495,000 | 1% | |||||
| 8 | Sandy Bay | $655,000 | 0% | |||||
| 9 | Claremont | $482,000 | -1% | |||||
| 10 | New Town | $458,000 | -4% | |||||
| Source: PropTrack | ||||||||
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