‘Biggest driver’: Affordability is fueling Hobart’s thriving neighborhoods

House prices rose by double digits in eight Hobart suburbs, led by the prestigious seaside area.

PropTrack data shows that Kingston Beach homes have recorded a 32 percent increase in median sales price over the past 12 months.

The average Kingston Beach house now costs $1.125m. It was the only Tassie area among the top performers to have an average of more than $1m.

The northern city of Berrydale led the way, with a 20 percent increase during the 2025 rate cut cycle.

Nearby Chigwell recorded an increase of 15 per cent, followed by Mornington (14 per cent) and Bridgewater (12 per cent).

In the unit market, Glenorchy was the top site with its sale price rising 12 per cent to $495,000.

Bellerive units also had a double-digit increase of 11 percent to $630,000.

The Reserve Bank of Australia cut rates three times last year before high inflation prompted a reversal and a rate hike was announced in February.

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No.76 Beach Rd, Kingston Beach is listed by Nest Property for $980,000-plus. Photo: realestate.com.au

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No.187 Cambridge Rd, Mornington is valued at “Donations in excess of $650,000”. Crowther Richards Real Estate. Photo: realestate.com.au

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REA Group chief economist Angus Moore said low interest rates played a big role in when and how much prices rose, but affordability issues, market pressure and investor activity were also important factors.

“What people can afford, which is a function of interest and income, is what drives the price of houses,” he said.

“The reduction in rates that we saw last year has increased the level of borrowing and that has been a key factor supporting house prices.”

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Angus Moore of REA Group.

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Of Hobart’s Top 10 housing estates, most were areas with a median lower than Hobart’s grand median.

“A theme we’ve seen in recent years is the efficiency of affordable housing,” said Mr Moore.

Real Estate Institute of Tasmania president Russell Yaxley said some suburbs will always outperform others because the property market doesn’t move in a straight line in the region or region.

“There are pockets that do better because of affordability, service provision, consumer demand and local services and infrastructure,” he said. “It’s no surprise to me that many of the strongest suburbs sit below the Hobart median, because affordability is so important in Tasmania right now.

“Affordability and value for money are still top priorities.”

No.13 Junee St, Chigwell is priced at “Offers over $479,000” with Belle Parker @ Homes. Photo: realestate.com.au

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Mr Yaxley said the market was still seeing demand from people moving to Tasmania for lifestyle and work, and this was keeping prices strong in the suburbs.

“First-time homebuyers have the best opportunity to enter the market right now with lots of incentives,” he said.

“Investors are also active, especially in suburbs with better rental yields and lower vacancy rates.”

Real Estate Institute of Tasmania president Russell Yaxley.

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At a national level, recent data suggested that more buyers are moving faster in areas where prices have grown faster, Mr Moore said.

“There has been a huge increase in low LVR lending – below 60 per cent – which will be accompanied by the development of people with greater equity behind them,” he said.

“Areas that have seen strong price growth have also seen a higher number of people selling quickly, which may be consistent with people moving faster than they had planned.

Meanwhile, the latest PropTrack House Price Index revealed regional Tasmania had its highest house price on record, with Hobart beating in that department, just 0.2 per cent off its record.

No.5 Kilander Crs, Berriedale is listed with South Property Group for $739,000-plus. Photo: realestate.com.au

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