Hobart House prices on the rise: PropTrack Home Price Index

Hobart home prices are rising for the first time since January, according to a new report.

View of Hobart and the Tasman Bridge. Picture: Tourism Tasmania

Hobart home prices are rising for the first time since January, according to the latest PropTrack Home Price Index.

The report showed that prices in Hobart grew 0.63 per cent in August, the second highest monthly growth of all capital cities.

Only Perth with a 0.79 per cent increase did better, with Adelaide prices up 0.45 per cent.

While home price growth in Sydney slowed prices were still up 0.32 per cent in August while prices in Melbourne fell 0.18 per cent.

Despite the rise, Hobart home prices remained 0.50 per cent below August 2023 levels, having recovered 1.04 per cent from their May 2024 trough. The median house price across Hobart in August 2023 was $716,250.

Hobart remained the weakest capital city market when comparing change from its peak (-8.19 per cent), however this follows a period of outperformance during the pandemic and strong growth in the years preceding, PropTrack said.

The report said home prices in regional Tasmania recorded a 0.10 per cent decline in August, however were 1.63 per cent higher year-on-year.

Since March 2020, home prices have increased by 36.5 per cent in Hobart and 55.5 per cent in regional Tasmania.

PropTrack senior economist and report author Eleanor Creagh said price growth differed around the country due to the balance between supply and demand.

“Home prices are expected to lift as activity ramps up into the spring selling season,” she said.

“However, the expected uplift in choice, the uncertainty around timing of interest rate cuts and affordability constraints are likely to dampen the pace of price growth.”

Aerial view of the iconic Hobart waterfront in Tasmania. Escape 18 February 204 48hrs … Silver Muse Photo - iStock

Ms Creagh said nationally home prices “have cycled through 20 consecutive months of growth” which had slowed in the quieter winter period.

“Although the number of homes hitting the market this year has lifted, strong population growth, tight rental markets and home equity gains are bolstering demand,” she said.

“Meanwhile, building activity remains challenged, exacerbating a chronic shortage of housing.

“Supporting price growth, July’s tax cuts boosted borrowing capacities and buyers’ budgets, while the persistent growth in home prices is likely motivating many to overcome affordability challenges.

“As a result, housing demand remains buoyant, defying affordability constraints and pushing prices higher across much of the country.”

Property partner at The Agency Hobart, Georgie Rayner, said she was looking forward to a busy spring selling season.

“The last two properties that I have sold were gone in just four days on the market,” she said.

“One of them, in the heart of the city, attracted multiple offers and over 100 people at three open homes. It sold for $80,000 over the asking price.”

Mrs Rayner said in the past few weeks she has seen a shift in the market.

“Purchasers are ready to buy, far more so than they were six months ago,” she said.

“They are coming to the table with pre-approved loans. Their conditions are often ‘unconditional’.

“People have used the quieter months to prepare themselves to be as competitive as they can be.”

Originally published as Hobart House prices on the rise: PropTrack Home Price Index