Hobart home price growth stalls as median value dips for the first time in months

Hobart’s sub-$700,000 housing market is strong says, agent Ant Manton. Picture: Supplied

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For the first time in months, Hobart has not posted a new peak home price.

Instead, the median dwelling value dipped in June by about $3000.

The southernmost capital set new price benchmarks in March, April and May this year.

The latest PropTrack Home Price Index shows Hobart’s median decreased by 0.2 per cent over the past month.

Every capital city aside from Darwin posted price falls between 0.2 and 0.5 per cent.

The report showed that over the past 12 months, Hobart prices have grown by 9.4 per cent, with the median now $732,000.

In regional Tasmania, June’s dwelling values increased by 0.3 per cent, and by 13.6 per cent annually, reaching a new peak price of $589,000.

Results varied across the state: the South East and Hobart regions posted 9 and 9.4 per cent annual growth, while the West and North West reached 13.1 per cent and Launceston and the North East set the pace with a 15.2 per cent uptick in prices.

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Agent Ant Manton from LJ Hooker Pinnacle Property.

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LJ Hooker Pinnacle Property agent Ant Manton said Hobart homes priced under $700,000 are a “strong” corner of the market right now.

He said the top end of the market is moving slower than it was a year ago.

“The interstate investor market has cooled noticeably,” he said.

“I’m only getting four or five calls from ‘buyer’s agents’ each day instead of 10-15.”

Mr Manton believes the market is in a holding pattern at the moment.

“However, we are fortunate in Hobart that we don’t suffer the extreme sudden dips that other cities experience,” he said.

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Economist Anne Flaherty.

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REA Group senior economist Anne Flaherty described Hobart’s monthly median price fall as “modest”.

Ms Flaherty said higher interest rates and cost of living pressures continue to weigh on purchasing power.

“The Budget may have also contributed to more cautious decision-making among owner-occupying buyers and investors,” she said.

“The strongest performing parts of the market continue to be those offering the greatest affordability.

“Conditions appear to have improved for first-home buyers, who will benefit from lower home prices and less investor competition in 2026.”

No.96 Allambie Rd, Orielton is priced at $1.1m-plus.

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No.14 Benjafield Tce, Mount Stuart is seeking “Offers over $950,000”.

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Meanwhile, since the broadening of the 5% Deposit Scheme in October 2025, cheaper home prices have grown faster than more expensive parts of the market, Ray White Research shows. In Hobart, the cap rose to $700,000 and in regional Tasmania to $550,000, with under-threshold homes recording growth of 5.3 per cent, compared with 2.4 per cent for properties priced above the threshold.

Ray White Group chief economist Nerida Conisbee said the government helped push first home buyers into the cheaper end of the market.

No.122 Norma Rd Howrah is on the market for $945,000-plus.

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Now, she said, through the Budget changes, it will push investors out of that same part of the market.

“This is important because investors are also concentrated in cheaper markets,” she said.

“They are more likely to buy apartments, townhouses and lower-priced houses where entry costs are lower.

“These are often the same markets where first home buyers are active.”