Hobart is well positioned for home price growth in 2026. Picture: Supplied
Hobart homeowners hoping for home value growth this year could be in luck.
Experts expect Hobart to be a winner in 2026.
PropTrack figures show Hobart’s 2025 home price growth was 7.6 per cent in the year through November.
This brought the price of a typical home to $699,000.
In PropTrack’s Property Outlook Report, REA Group economists Angus Moore, Eleanor Creagh, and Anne Flaherty forecast Hobart prices to increase by 4-7 per cent in 2026.
If this forecast proves correct, a 4 per cent increase would add $27,960 to the city’s median dwelling value, moving it to $726,960.
At the top end, a 7 per cent increase would push prices up by $48,930 to $747,930.
Both scenarios would set a new peak price for a Hobart home.
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REA Group’s Angus Moore.
The economists expect prices in Australia’s combined capital city markets to grow by between 6-8 per cent. This would be similar to the average pace of growth over the past three decades.
Angus Moore said Hobart has moved through a boom and cooling phase, with home prices yet to recover to its 2022 peak.
He said 2026 was likely to eventuate as a period of consolidation rather than a renewed boom. “Affordability is stretched, with prices still high relative to local incomes,” Mr Moore said.
“Meanwhile, population growth has slowed from its earlier highs.
“That combination points to steady price growth and a likely reclaiming of the 2022 peak in prices, but not a return to the exceptionally fast pace of gains seen in the pandemic boom.”
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Meanwhile, Hotspotting’s Price Predictor Index forecasts rising prices as being “a near certainty”.
Hotspotting founder Terry Ryder said the year is set to begin with “enormous momentum”, thanks to elevated buyer demand in all the major market jurisdictions, against a background of supply shortages.
Hotspotting director Terry Ryder.
Mr Ryder said the recovery in the Hobart market is confirmed by the latest numbers, with a 22 per cent rise in sales activity in the latest quarter — up 29 per cent on the same time a year ago.
“Suburbs with positive rankings have improved from 53 per cent to 72 per cent, while those with negative rankings have dropped from 29 per cent to 12 per cent in the latest quarter,” he said.
“The more affordable locations in greater Hobart are showing the strongest uplift.
“For example, in the Glenorchy LGA, seven of the nine markets in our analysis had positive rankings, with a 31 per cent rise in sales numbers in the latest quarter.”
Be on the look out for Launceston.
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Mr Ryder said there’s been a notable uplift in the regional Tasmania market, with a 13 per cent increase in sales in the latest quarter — 23 per cent higher than the same time a year ago.
“Markets with positive rankings are now 63 per cent of the total, up from 51 per cent.
In the Spring edition of the PPI, Hotspotting categorised the Regional Tasmania market as “solid and steady”, he said.
“The upturn in the regional Tasmanian market is most evident in the major centres in the north of the state. Launceston, the second city of Tasmania, has been a highly consistent market with sales volumes until the latest quarter, which saw a 22 per cent quarter-on-quarter increase in sales activity — led by rising markets in Invermay, Newnham and South Launceston.”
In November 2025, SQM boss Louis Christopher’s “base case” forecast for Hobart was a 4-7 per cent increase.
Depending on which factors come into play this year, he said price growth could be just 3 per cent or as high as 10 per cent.
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