How much 1990s Hobart homes would cost today

If you bought a Sandy Bay home in 1990 and still own it, that was a great move financially.

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In 1990, homebuyers could secure a house in one of Tasmania’s most affluent suburbs for less than Hobart’s most affordable neighbourhood today.

Exclusive PropTrack research shows a typical ‘90s Sandy Bay home had a median value of $161,500. Adjusted for inflation, that is the equivalent of $335,500 in today’s money.

But not one greater Hobart suburb has a median price that is that low in 2025. The closest is Hobart’s cheapest area, Gagebrook, at $387,000.

Sandy Bay’s median house price is currently $1.315m, or 291 per cent higher than the adjusted for inflation price.

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No. 3 Lasswade Ave, Sandy Bay is on the market for $4.5m-plus with Elders Tasmania.

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No. 21 Briar Cres is the only house for sale in Gagebrook today. Listed with LJ Hooker Pinnacle Property at “Offers over $399,000”. Picture: realestate.com.au

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The trend can be seen across Hobart, with ‘90s inflation-adjusted prices falling well short of today’s values.

A typical home in Blackmans Bay today is $860,000. That’s over three-times more expensive than the inflation-adjusted ‘90s value of $229,500.

It’s the same story in Moonah, where a ‘90s home worth $80,000 equates to $166,200 in 2025. But the median is currently $615,000; almost four times higher.

No. 13 Flowerpot Crs, Blackmans Bay is listed with Elders Tasmania at $970,000-plus.

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Listed for sale with Roberts, No. 83 Butler Ave, Moonah is seeking “Offers over $895,000”. Picture: realestate.com.au

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PropTrack economist Angus Moore said the rapid growth in home prices since the early 1990s was linked to lower interest rates during that time.

The Reserve Bank of Australia this month cut 25 basis points from the official cash rate, now at 3.85 per cent compared to a high of 17 per cent in 1990.

“Interest rates are a lot lower and more stable than they were in the 1980s or 1990s, which has made mortgages more affordable,” Mr Moore said.

Lower interest rates reduce the cost of borrowing, allowing buyers to afford larger loans, which can drive up property prices.

“When interest rates are lower, people can afford to service a larger mortgage, which then creates greater competition in the housing market and that has allowed home prices to rise much faster than wages,” he said.

PropTrack economist Angus Moore.

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But for first-home buyers, the boost in borrowing power does not offset the growing cost of saving for a deposit.

“The deposit hurdle is just unequivocally harder than it was four or five decades ago, and that has manifested in homeownership rates which have fallen over those years,” Mr Moore said.

“Most first-home buyers don’t have a 20 per cent deposit available.”

PropTrack 2023-2024 figures showed it took an average-income Tasmanian household six years to save a 20 per cent home loan deposit. Ten years ago it took four years of savings, and 20 years ago it took three years to gather a deposit.

View Hobart chief executive Adrian Kelly. Picture: Luke Bowden

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View Real Estate chief executive Adrian Kelly agreed that deposits are a major hurdle. He said stamp duty is another.

“We do see parents helping their children when they can afford to, as saving a deposit is such a challenge now, especially for people who are renting,” Mr Kelly said.

“The only fix for this challenge is increased supply, which will take a couple of decades to work through.

“Anything that gets a first homebuyer out of a rental into their first home is wonderful because that also frees up a rental for someone who needs it.”