5 best suburbs in Hobart to invest in 2025
Looking to buy a house in Hobart? These are the top 5 best suburbs to invest in Hobart for 2025, based on overall market performance

Looking to buy a house in Hobart? These are the top 5 best suburbs to invest in Hobart for 2025, based on overall market performance
KEY POINTS
- The property market in Hobart, Tasmania’s capital, is expected to improve in 2025, though not to the same degree as seen in previous years.
- Hobart has a tight rental market with low vacancy rates, though rental growth may be limited by the ability of tenants to pay higher rents hitting a ceiling.
- Tasmanian investment in infrastructure projects could also affect Hobart’s housing markets in the future..
Despite some struggles over the last few years, there is optimism that Hobart’s property market will enjoy improved performance over 2025. Many Hobart suburbs have excellent long-term capital growth rates, thanks to the previous boom period. That said, while the overall analysis suggests performance will improve in 2025, we’re unlikely to see that level of uplift repeated in the near future.
Hobart’s rental market presents an apparent contradiction: ultra-low vacancy rates but very little rental growth. This is because the Tasmanian capital has had a tight rental market for a long time, and has hit a ceiling in terms of tenants’ ability to pay increasing rents.
Hobart does well in terms of its infrastructure investment relative to population. The city reportedly spent around $4 billion on infrastructure projects last year, with a similar level of projects in planning. For example, the Tasmanian government recently announced it would be unlocking land for 10,000 new homes in the Hobart region.
The data below was prepared in February 2025 with suburb median prices, growth rates, vacancy rates and median rental yields provided by Hotspotting by Ryder and initial outlay and monthly repayments calculated by Canstar Research.
Top 5 best suburbs in Hobart to invest in 2025
- Geilston Bay
- Howrah (U)
- Moonah
- Risdon Vale
- Rokeby
Geilston Bay
The City of Clarence on the eastern shore of the River Derwent is a consistently steady performer in the Hobart market. Price growth in Geilston Bay has averaged 7% per year over the past five years and houses now generally fetch more than $700,000. There are lots of services and amenities in Geilston Bay and neighbouring Lindisfarne, including shops and schools, with multiple options for accessing the waterfront.
Howrah (U)
Traditionally, units haven’t played a major part in the Hobart property market, which offers some of the cheapest capital city houses in Australia. With significant growth in Hobart house prices over the last three to four years, there is now consistent demand for units in suburbs like Howrah, where unit values have grown at the rate of 8% a year over the past five years. With vacancies at zero, there is also great potential for rental growth.
Moonah
This northern suburb of Hobart has become one of the most popular for home buyers for its affordability and amenities, achieving a 6% rise in its median house price in 2024 and a longer-term growth average of 8% a year. Moonah houses have typically sold in three weeks, at a time when Hobart prices generally have stagnated, and its vacancies are also below 1%.
Risdon Vale
Considered a ‘less desirable’ suburb in Hobart (being the location of two prisons), Risdon Valealso has one of the best capital growth rates in the city, averaging 10% a year over the past five years—which says something about perceptions on real estate growth potential. Risdon Park grew its median price by 4% over the past 12 months, at a time of stagnation in the Hobart market, with the median house price now being $460,000.
Rokeby
It has been hard to find affordable options in Hobart, but Rokeby in the busy Clarence LGA property market may be a good option, with a median house price of $590,000. This is despite capital growth averaging 13% per year over the past five years. Demand remains high and houses sell quickly, with vacancies below 1% consistently since 2016. This precinct has numerous schools and the Tasmania Police Academy.
The comparison rate for all home loans and loans secured against real property are based on secured credit of $150,000 and a term of 25 years.
^WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
Canstar may earn a fee for referrals from its website tables, and from Sponsorship or Promotion of certain products. Fees payable by product providers for referrals and Sponsorship or Promotion may vary between providers, website position, and revenue model. Sponsorship or Promotion fees may be higher than referral fees. Sponsored or Promoted products are clearly disclosed as such on website pages. They may appear in a number of areas of the website such as in comparison tables, on hub pages and in articles. Sponsored or Promoted products may be displayed in a fixed position in a table, regardless of the product’s rating, price or other attributes. The table position of a Sponsored or Promoted product does not indicate any ranking or rating by Canstar. For more information please see How We Get Paid.
Best suburbs to invest in Hobart 2025
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Suburb | Median price | 1-year growth (p.a %) | 10-yr average annual growth (p.a %) |
Vacancy Rate | Median Rental Yield (p.a %) | Initial outlay (no concessions) on 20% deposit |
Monthly Repayment |
---|---|---|---|---|---|---|---|
Geilston Bay | $725,000 | 1% | 7% | 0.00% | 4.30% | $173,215 | $3,552 |
Howrah (Unit) | $605,000 | 3% | 8% | 0.00% | 4.50% | $144,115 | $2,964 |
Moonah | $635,000 | 6% | 8% | 0.90% | 4.70% | $151,390 | $3,111 |
Risdon Vale | $460,000 | 4% | 10% | 1.50% | 5.20% | $108,953 | $2,254 |
Rokeby | $590,000 | 1% | 13% | 0.80% | 5.00% | $140,478 | $2,891 |
Source: www.canstar.com.au. Prepared in February 2025. Based on a selection of suburbs’ median prices, growth and rent figures provided by Hotspotting by Ryder. Initial outlay figures include the deposit, stamp duty, mortgage registration and transfer fees; and lenders’ mortgage insurance (LMI) premium for the 10% deposit scenarios. Stamp duty calculated based on an owner occupier purchase of an established dwelling where applicable. FHB concessions include stamp duty only. LMI premium based on Helia LMI Premium Calculator for an owner occupier borrower and a loan term of 30 years. Monthly repayments calculated based on the interest rates of 6.20% (20% deposit) and 6.34% (10% deposit) and a loan term of 30 years. Interest rates based on the RBA Lenders’ Interest Rates (November 2024). Percentage of income based on the average total income by Greater Capital City Statistical Area (ABS Personal Income, 2021-22), adjusted by the ABS Wage Price Index (Sep-2024) for each state.
What are some of the factors that are affecting the Hobart market?
Sales volumes
Four out of 10 Hobart suburbs have shown positive trends with sales activity, with Hobart being equal to Canberra in terms of sales volumes. Hobart’s previous boom could be partly attributed to the city’s relatively cheap housing, but with the median Hobart house price now above $700,000, this is no longer a major catalyst.
Quarterly price growth
The nation-leading price rises that were once a feature of the Hobart market are no longer occurring. Only 16% of Hobart suburbs recorded quarterly growth above 2% in the quarter under review, which is only ahead of Regional Victoria.
Vacancy rates
Research indicates Hobart has one of the nation’s lowest vacancy rates, well below 1%. What’s more, analysis shows that eight out of ten Hobart suburbs are below that benchmark.
Rental growth
It may seem contradictory that Hobart leads on vacancies but is last on rental growth, but Hobart has recorded major rental growth in recent years. The market’s capacity to pay more is limited—particularly as the state economy is no longer humming and Tasmania has the nation’s lowest incomes. Only 16% of suburbs have recorded annual rent increases above 5%, making Hobart about equal to Darwin in this category.
Infrastructure spending
Hobart does well in terms of infrastructure investment relative to population. Projects under way last year totalled around $4 billion—a high figure for a small city—and a similar level of projects is in planning. Ongoing investment in infrastructure may represent Hobart’s best hope of revitalising its property market.
The comparison rate for all home loans and loans secured against real property are based on secured credit of $150,000 and a term of 25 years.
^WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
Up to $4,000 when you take out a IMB home loan. Minimum loan amounts and LVR restrictions apply. Offer available until further notice. See provider website for full details. Exclusions, terms and conditions apply.
Canstar may earn a fee for referrals from its website tables, and from Sponsorship or Promotion of certain products. Fees payable by product providers for referrals and Sponsorship or Promotion may vary between providers, website position, and revenue model. Sponsorship or Promotion fees may be higher than referral fees. Sponsored or Promoted products are clearly disclosed as such on website pages. They may appear in a number of areas of the website such as in comparison tables, on hub pages and in articles. Sponsored or Promoted products may be displayed in a fixed position in a table, regardless of the product’s rating, price or other attributes. The table position of a Sponsored or Promoted product does not indicate any ranking or rating by Canstar. For more information please see How We Get Paid.
Cover image source: Julian Peters Photography/Shutterstock.com
This article was reviewed by our Finance Editor Jessica Pridmore before it was updated, as part of our fact-checking process.

The comparison rate for all home loans and loans secured against real property are based on secured credit of $150,000 and a term of 25 years.
^WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
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The comparison rate for all home loans and loans secured against real property are based on secured credit of $150,000 and a term of 25 years.
^WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.