Hobart Rental Market Report

Australia’s housing market continues to present a fascinating and complex picture in 2025, with median property prices varying widely across the country’s capital cities and regions. Recent data reveals positive momentum in many markets, spurred on by population growth, lower interest rates, and constrained housing supply—yet affordability challenges and economic factors temper these gains in several areas. Understanding the latest trends in median house and unit prices is essential for homebuyers, investors, and industry professionals navigating this evolving landscape.

Australia's property market continues to evolve with significant shifts in investor lending patterns and mortgage trends that are shaping investment opportunities across the nation, particularly in growth regions like Hobart. Recent mortgage data highlights a narrowing gap between owner-occupier and investor lending, signaling a resurgence of investor confidence driven by improving affordability and market conditions.

The Australian property market remains robust following the Reserve Bank of Australia's August interest rate cut. This move has improved affordability and boosted confidence among buyers and sellers, driving property prices higher in most capital cities. House prices have risen steadily over the past six months, with the latest quarter seeing a 0.9% increase, bringing the median house price nationally to over $1.2 million. This reflects a strong 6.3% year-on-year growth, signalling positive momentum for homeowners and investors. The unit market is also performing well, with prices increasing for seven consecutive months. The median unit price now approaches $689,000, representing a 4.6% rise compared to last year. Looking forward, Brisbane, Perth, and Adelaide are expected to lead price growth, potentially exceeding 10% annually for both houses and units. Observers are watching closely for possible additional interest rate cuts by the RBA in 2025, which could further energize the market. Among major cities, Darwin stood out in August with the highest monthly house price increase, followed by strong gains in Brisbane, Sydney, Adelaide, Perth, and Canberra. Rental markets are tightening with vacancy rates dropping and rents rising, driven by ongoing demand and population growth sustained by post-COVID migration. Economic fundamentals remain supportive, including low unemployment and strong labour force participation, which continue to underpin consumer confidence. Government initiatives to assist first home buyers are also expected to boost demand, adding upward pressure to prices. As 2025 progresses, Brisbane, Perth, and Adelaide are set to sustain strong market performances. Melbourne is beginning to show signs of revival after a quieter period, while Sydney continues to see steady price growth despite affordability challenges. These trends underscore the dynamic nature of Australia's housing market in 2025, with significant opportunities for buyers, investors, and market watchers alike.

Every landlord wants to secure the highest possible rental price for their property in the shortest timeframe. At Ray White Hobart, with over $1 billion worth of property management experience, we know precisely what it takes to get your property leased quickly and at the best possible market rent. We’ve identified the three critical factors that directly impact how fast your property is rented: Price, Presentation, and Promotion. Here's how we expertly manage each of these to help you achieve premium rental returns through strategic Hobart property management. 1. Price: Staying Competitive in the Local Market In today’s well-informed, digital world, setting the right rental price is essential. Overprice your property, and it may sit vacant; underprice, and you miss out on potential income. Ray White Hobart provides detailed Competitive Market Analysis (CMA) reports, showing you comparable properties currently on the market and recently leased. We combine this data with honest feedback from prospective tenants during inspections to recommend a rental price that is attractive, competitive, and designed to reduce vacancy times. Our goal is a pricing strategy that maximizes your rental income while minimizing periods without tenants. 2. Presentation: Make Your Property Irresistible Presentation plays a vital role in attracting quality tenants quickly. Over time, even well-maintained properties can lose their initial appeal. A fresh coat of paint, new carpet, or minor refurbishments can make a remarkable difference—especially in the highly competitive rental market of Hobart. When your property looks inviting and well cared for, prospective tenants respond positively. This not only reduces vacancy but also helps maintain or increase rental values over time. At Ray White Hobart, we will advise and assist you with any presentation improvements needed to keep your property at the top of the market. 3. Promotion: Getting Your Property Seen In the digital age, “you can’t rent a secret.” Effective promotion is key to attracting the widest possible pool of tenants. Our Promotion Strategy Includes: Top Property Portals: We advertise your property on all major online portals, plus our own highly-visited Ray White Hobart website. To ensure visibility, premium listings at the top of search results are recommended to enhance exposure and increase enquiry volume. For Lease Signboards: Despite technology, traditional signage remains powerful. Over 10% of tenant enquiries come from drive-bys, where potential renters spot a For Lease sign while exploring the area. Open for Inspections: Using the latest technology, tenants can book inspections online and receive text/email reminders. We often schedule multiple prospects for the same inspection, creating a competitive environment that encourages above-market offers and deters lowball bids. The New Tenant “Drive-By”: Online First Impressions Matter Most tenants now start their search online. High-quality photos and compelling online marketing are critical because poor or amateur photography can cause your property to be overlooked even before a tenant steps foot inside. Our rental packages include professional photography to showcase your property’s best features, regularly updating images to reflect its current condition. This enhanced presentation online drives more genuine enquiries and reduces vacancy durations. Considering Pets: Expanding Your Tenant Pool If your property is suitable for pets, accepting pet-friendly tenants can significantly increase demand. Good tenants with pets often lead to longer tenancies and more positive experiences. Ray White Hobart only approves A-grade tenants, ensuring pet owners meet strict standards. When pets are accepted, we include specialized pet clauses in the lease to protect your property. Being a no-pets property can limit your tenant pool, potentially leading to longer vacancy periods and lost rent. In Summary: Why Properties Don’t Rent Quickly If your property is not leasing rapidly, it usually comes down to one or more of these factors: Overpriced relative to the current market Poorly presented and needing maintenance or updates Ineffective or minimal advertising At Ray White Hobart, we protect your interests throughout the letting process by providing ongoing market feedback, expert advice, and hands-on management—treating your property as if it were our own. Ready to Maximise Your Rental Returns? Partner with Ray White Hobart to leverage our deep local market knowledge, cutting-edge marketing techniques, and professional property management expertise. Contact us today to discuss how we can help you achieve the top rental for your investment property in Hobart.

At Ray White Hobart, we pride ourselves on delivering expert Hobart property management services focused on selecting the best tenants and fostering long-term relationships that benefit both landlords and tenants. Our goal is simple: to provide you with high-quality tenants who stay longer, treat your property well, and deliver better rental returns year after year. Happy tenants lead to fewer vacancies, reduced advertising costs, and less hassle for landlords. Well-informed tenants are more willing to accept reasonable rent increases and are more likely to maintain the property as if it were their own. Here’s how Ray White Hobart’s tenant selection and management process helps maximize your investment: 1. Enquiry and Inspection The tenant selection process begins with every enquiry. Using the latest tools, our team responds promptly and schedules escorted inspections to meet prospective tenants in person—no keys are handed out without this step. Meeting tenants early allows us to assess suitability and set clear expectations regarding tenancy standards. 2. The Application We streamline leasing by allowing tenants to apply online, enabling us to quickly filter suitable candidates. Our priority is ensuring only the best-qualified tenants proceed. Applications are only processed once the prospective tenant or their trusted representative has physically inspected the property. This approach reduces vacancy times and saves landlords money by finding great tenants faster. 3. The Sign-Up After approval, tenants electronically sign leases and submit payments. At our Hobart office, we conduct a detailed sign-up appointment where we reinforce rental expectations, educate on rent arrears protocols, lease break procedures, maintenance reporting, and introduce the support team. Tenants also receive a comprehensive tenant handbook. 4. Entry Condition Report Before tenancy begins, we complete a thorough Entry Condition Report capturing the property’s state with photos and detailed notes. This report is critical for resolving any disputes at lease end by clearly documenting pre-existing conditions and wear and tear. 5. Routine Inspections Regular routine inspections ensure tenants maintain the property according to the agreement. Landlords receive notifications about inspections and detailed reports including photos and notes. Any significant issues are promptly escalated by our property managers. 6. Ongoing Management Good tenants may sometimes become problematic if maintenance requests are ignored. At Ray White Hobart, we emphasise timely responses to tenant requests to maintain positive relationships. This proactive approach prevents small issues from becoming costly repairs and helps preserve your property's value. 7. Rental Arrears We enforce a strict zero-tolerance policy on rent arrears and property mistreatment, ensuring rent is paid on time and your property is respected. This effective approach minimizes risk and financial loss for landlords. 8. Lease Renewals Approximately two months before lease expiry, we begin renewal discussions with tenants, recommending rents aligned with Hobart market conditions. Our goal is to secure 12-month lease renewals at the highest achievable rent, while keeping you in full control of lease strategy. 9. Property Refresh and Renovations To attract premium tenants and reduce vacancies, we advise landlords on refreshing or renovating properties when appropriate. This strategy maximizes rental income and keeps your property competitive in the Hobart market. 10. Tenant Vacating Endings are part of the leasing cycle. At Ray White Hobart, we manage tenant departures carefully, maintaining good relations to ensure outgoing tenants cooperate with inspections and present the property well. This approach helps shorten vacancy periods and reduce re-letting costs. Partner with Ray White Hobart for Expert Hobart Property Management With Ray White Hobart, you receive a dedicated property management team committed to selection excellence and ongoing tenant relationship management, protecting your investment and maximizing returns. Contact us today to learn how we can help streamline your rental property journey.