Hobart’s dwelling values still sit below their March 2022 peak. It is not alone in that. Melbourne peaked the same month and is still 6.8% under it. Hobart is 1.1% below its peak on Cotality’s August 2026 index. At the same time vacancy sits at 0.6% (SQM, August 2026). House rents rose 8.5% over the year, second only to Darwin among the capitals.
Hobart has held up better than most. Its median dwelling value is $752,397, up 8.1% over the year, on Cotality’s Home Value Index to 31 August 2026. It slipped just 0.2% over the August quarter, while Sydney fell 4.7% and Melbourne 3.9%.
Prices still under peak plus severe rental tightness is a rare combination. It’s why the best suburbs to invest in Hobart 2026 deserve a fresh look rather than a copy-paste from last cycle’s list.
How we picked these five
Five suburbs, all inside Greater Hobart, screened on four filters. The first is a median house price around $800K or less, so the numbers stay workable for a typical investor. Kingston has since moved just past that, to $820,000. The second is gross yield above 4%, so the rent covers a meaningful share of holding costs. The third is vacancy under 1%. The last is at least one structural driver in place for the next cycle.
The first driver we care about is the Macquarie Point stadium, now at builder tender stage. The second is the UTAS city campus at The Forest on Melville Street. The $786 million Bridgewater Bridge, open since June 2025, feeds the northern corridor.
We picked houses on decent blocks, not apartments. Hobart has historically been a thin market for unit stock. Houses hold the better growth and reno optionality.
Claremont (7011)
Median house price: ~$614,000 Gross rental yield (houses): ~4.8% Median weekly rent: ~$570 12-month growth (houses): ~11.6%
Claremont is the most affordable house entry on this list. At $614,000 with a 4.8% yield, a $570 weekly rent covers more of your IO holding costs than anything else here.
The suburb sits 15km north of the Hobart CBD in the Glenorchy LGA, with the Brooker Highway running straight down to the city. Much of the housing stock is older brick on decent blocks. That’s the exact profile we look for. These homes are structurally sound but visually dated. They’re ready for a cosmetic reno that can force $30,000-$50,000 in equity. For how that equity cycle feeds the next purchase, see our portfolio building guide.
The trade-off is demographic. Claremont has historically been softer than suburbs closer to the CBD. The yield reflects that discount. But with Hobart vacancy at 0.6% and house rents up 8.5% over the year, the rental numbers make up for it.
Glenorchy (7010)
Median house price: ~$648,000 Gross rental yield (houses): ~4.7% Median weekly rent: ~$580 Vacancy: 0.3%
Glenorchy is the administrative and retail hub of the northern corridor. Northgate Shopping Centre and the main bus interchange sit in the suburb. It’s about 10km north of the Hobart CBD. That’s close enough for city workers who don’t want to pay inner-ring prices.
At $648,000 with a 4.7% yield, Glenorchy gives you a more stable tenant base than Claremont without giving up much yield. Vacancy was 0.3% in August 2026 (SQM). MONA sits in the same council area. It’s one of the cultural anchors that pulls visitors and hospitality jobs into the northern corridor.
The Hobart Showground redevelopment is also under way in Glenorchy. Older houses on larger blocks carry subdivision and granny-flat potential over a 5-10 year hold, subject to council rules.
Moonah (7009)
Median house price: ~$695,000 Gross rental yield (houses): ~4.7% Median weekly rent: ~$622 Days on market: ~16
Moonah is the suburb most often compared to Brunswick in Melbourne or Marrickville in Sydney a decade ago. It’s inner-north, with industrial heritage, a food scene turning over and a creative tenant base moving in. The suburb is about 6km from the CBD on the main arterial and sits inside the Glenorchy LGA.
At $695,000 the entry is higher than Claremont or Glenorchy, but the location earns the premium. House prices rose 8.3% in the year to June 2026. Houses spend around 16 days on market. A decent property doesn’t linger. The tenant mix skews toward younger professionals, hospitality workers and university-linked renters. That typically means 12-month leases and lower turnover.
What matters for 2026 is the UTAS shift. The Forest on Melville Street has opened as the university’s newest CBD campus building. Business and Economics, Humanities and Social Sciences, and Social Work students are now based there. Moonah is under 10 minutes’ drive from the CBD. That gives those students and staff a lower-priced, well-connected alternative to renting in Sandy Bay.
Kingston (7050)
Median house price: ~$820,000 Gross rental yield (houses): ~4.1% Median weekly rent: ~$650 Vacancy: ~0.1%
Kingston is the southern suburb that behaves more like a satellite city than a commuter belt. It has its own shopping centres, a beach, the Kingborough Council offices, and a school catchment that parents actively target. The Southern Outlet connects Kingston to the Hobart CBD in about 15 minutes.
At $820,000 with a 4.1% yield and $650 weekly rent, Kingston is the most expensive and lowest-yielding suburb on this list. It pulls a different tenant demographic: families on 12-24 month leases, professionals working from home and southern-corridor CBD commuters. Vacancy at 0.11% in August 2026 was far tighter than the Hobart average of 0.57%.
The argument for Kingston is tenant quality and growth stability, not yield. If your portfolio strategy is balanced growth and yield rather than pure cash flow, Kingston belongs in the mix. The trade-off is less reno upside than the northern corridor suburbs. More of the housing stock is 1990s-2010s builds that already have modern kitchens and bathrooms. Look for the older stock on larger blocks if you want the reno lever to work.
Lindisfarne (7015)
Median house price: ~$791,000 Gross rental yield (houses): ~4.3% Median weekly rent: ~$650 LGA: Clarence
Lindisfarne sits on the eastern shore, a 10-minute drive from the CBD across the Tasman Bridge. It has a small village centre on the waterfront, a sailing club, and genuine water access. The tenant pool is split between CBD workers, airport-linked workers (Hobart Airport is a 15-minute drive) and lifestyle renters.
At $791,000 with a 4.3% yield, Lindisfarne sits mid-pack on cash flow. House prices rose only 1.7% in the year to June 2026, the slowest on this list, so it earns its place on tenant quality. Vacancy was 0.4% in August 2026. Derwent Ferries runs a 15-minute commuter crossing from Bellerive on the eastern shore to Brooke Street Pier. That helps when the Tasman Bridge is congested.
Lindisfarne is for tenant quality more than yield. One Lindisfarne house alongside two northern-corridor houses gives you a mix of growth, yield and tenant quality across two council areas.
The quick comparison
| Suburb | Median | Yield | Weekly rent | Angle |
|---|---|---|---|---|
| Claremont | ~$614K | ~4.8% | ~$570 | Most affordable house entry, reno stock |
| Glenorchy | ~$648K | ~4.7% | ~$580 | Northern hub, Showground works |
| Moonah | ~$695K | ~4.7% | ~$622 | Inner-north, UTAS spillover |
| Kingston | ~$820K | ~4.1% | ~$650 | Southern satellite, family tenants |
| Lindisfarne | ~$791K | ~4.3% | ~$650 | Eastern shore, quality anchor |
Hobart market context 2026
Hobart’s dwelling values peaked in March 2022 and were still 1.1% below that peak at the end of August 2026. They rose 8.1% over the 12 months to August, then slipped 0.2% over the August quarter (Cotality).
What matters for an investor is the combination. At 0.6% (SQM, August 2026), Hobart’s vacancy is the second-tightest of any capital city, behind Darwin. House rents are up 8.5% over the year, second only to Darwin. Values still sit below peak. That’s the trifecta we looked for in Adelaide in 2022.
The Macquarie Point stadium will be a roofed, 23,000-seat home ground for the Tasmanian AFL team. In August 2026 the Macquarie Point Development Corporation said two shortlisted teams had lodged initial tenders to build it. Whatever people think of the stadium, the money spent building it will flow into the waterfront precinct. The Forest, the new UTAS building in the CBD, is the other near-term driver. It brings business, humanities, social sciences and social work students into the city, closer to the inner-north rental markets.
If you’re comparing Hobart against the larger capitals, read the capital growth vs rental yield piece first. In this cycle Hobart is stronger on yield than on growth. The right portfolio mix depends on what you already own and what you need next.
What to avoid in Hobart
Sandy Bay houses as a first-time investor buy. The Sandy Bay house median is about $1.3 million. The yield works out near 3.2%. It’s an owner-occupier suburb. The investor premium is hard to justify on the numbers.
Off-the-plan apartments anywhere on the Hobart waterfront. The pipeline of new apartment stock has a history of settling below contract price. The rental yields on new units are thin. Hobart rewards older established houses on decent blocks, not new-build units.
Buying for the stadium alone. Macquarie Point is real, but so is the delivery risk. Builder tenders were still being assessed in August 2026. Pricing hasn’t been disclosed, and construction hasn’t started. Treat the stadium as one of several drivers rather than the main reason to buy.
Foreign investor duty surcharge. Tasmania charges an 8% duty surcharge on foreign buyers of residential property. If you’re buying through a structure with any foreign ownership, run the numbers with your accountant before committing. Our Tasmania stamp duty guide shows what the surcharge adds at common prices.
Too much in one LGA. Glenorchy, Hobart City, Clarence and Kingborough have different zoning, council rates and tenants. If you buy more than one Hobart property, spread them across council areas rather than putting them all in Glenorchy.
Where Hobart fits in a national portfolio
Hobart now looks a lot like Adelaide did in 2022, with values off their peak, tight vacancy, affordable prices and the next cycle still ahead. For an investor building a national portfolio, it adds a strong-yielding market at prices where the numbers still work.
If you’re buying interstate into Tasmania, street selection matters. The right street in Moonah and the wrong street in Claremont can differ by thousands a year in rent and tens of thousands in resale. A local Hobart buyers agent who knows which pockets work costs little next to that gap. The affordable markets over blue chip thesis fits Hobart particularly well in this cycle. For the northern end of the state, where yields run higher on lower entry prices, see our Launceston market analysis. For real examples of that thesis at work, see our case studies. Our Tasmania buyers agent page compares Hobart with Launceston, Devonport and Burnie.
This is general information only and not financial advice. Market data was updated in September 2026 and may have changed. Speak to a qualified professional before making investment decisions.
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