5 best suburbs in Regional Tasmania to invest in 2025

Property growth in regional Tasmania struggled in 2024, but has recently seen some solid sales activity. Combined with low vacancy rates, this could translate into stronger performance in 2025.

Similarly to Hobart, regional Tasmania enjoyed exceptional price rises in previous years thanks to the national trend of big city residents moving to regional areas to find a more relaxed and affordable lifestyle. These areas are still relatively affordable, but are no longer a bargain hunter’s paradise, with the market flat-lining over 2024 with only moderate growth.

Even Launceston, Tasmania’s second city and the target for many buyers during the state’s boom, is no longer such an affordable market. That said, it continues to attract new residents and interstate investors, and is poised for another growth phase after two years of stagnation.

Regional Tasmania now stands roughly equivalent to regional Western Australia or regional Victoria in terms of house prices. Though in terms of sales volumes, regional Tasmania is now doing about as well as regional Queensland, with half of its locations displaying positive trends.

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.

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Top 5 best suburbs in Tasmania to invest in 2025

• Acton
  
• Devonport
  
• Norwood
  
• Primrose Sands
  
• Ravenswood
  

Acton

The Burnie suburb of Acton is popular for its affordability and amenity, with THE Burnie LGA overall a key regional centre for Tasmania. Featuring one of the state’s top export ports in its north, as well as considerable public and private investment, it has a strong capital growth record; thanks in part to vacancies at zero and rents having risen almost 10% over the past 12 months.

Devonport

The northern centre of Devonport is the base for the ferries that connect Tasmania with Melbourne. Its housing market is experiencing a second wind, having experienced strong growth between 2020 and 2022, flatlining for two years, then rising again. Both houses and units have recorded median price growth in the past year, against the state trend of minor price decline.

Norwood

Buyer demand is rising in the suburb of Norwood, about 5km south-east of Launceston city centre—and in turn, prices are starting to react. The suburb has seen a five-year capital growth average of 10% a year, and vacancies are below 1%. Norwood is surrounded by major parks and reserves, and there are a number of schools in the area.

Primrose Sands

The Sorell municipality provides some affordable lifestyle alternatives to nearby Hobart. This includes bayside Primrose Sands, where prices are starting to rise again after a two-year pause following the 2020-2022 boom. There is also good demand from tenants, with rents rising almost 10% in the past 12 months.

Ravenswood

Ravenswood, on the eastern fringe of Launceston, is surrounded by forest reserves and has a primary school and a supermarket. Prices are starting to rise again in this affordable suburb, with an 8% increase in the past year. Despite this, and a five-year growth average of 13% a year, the median house price remains well below $400,000. The suburb also has the highest rental yields in the city, with a median of 6.6%.

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Best suburbs in Tasmania to invest 2025

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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.

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What are some of the factors affecting the regional Tasmania market?

Sales volumes

Sales activity peaked in Tasmania around 2021-22 and has been fairly moderate since. However, half of the locations in regional Tasmania are now displaying positive sales volume trends, roughly equivalent to regional Queensland.

Quarterly price growth

The recent elevation in sales may point to better outcomes on prices in 2025, but it wasn’t yet evident in the November quarter, with just 25% of locations delivering good price uplift.

Vacancy rates

Regional Tasmanian locations with vacancy rates below 1% increased from around 40% to around 57% over the past year.

Rental growth

Regional Tasmania is similar to Hobart in that it has experienced strong performance on vacancy rates but a weak outcome on rental growth. The reasons behind it are also similar—the capacity of the local market to pay higher rents after several years of big growth is limited, especially in the state with some of the lowest incomes in the nation.

Infrastructure spending

There is only moderate investment in infrastructure projects in regional Tasmania. However, the state’s economic and property prospects could improve in the future, with $10 billion in developments in planning.

Cover image source: Wirestock Creators/Shutterstock.com