The Apple Isle capital has seen its median dwelling value plunge 3% over the year to November, according to CoreLogic data.
The suburbs of North Hobart and Taroona are down -13.9% and -13.8% respectively, leading the pack.
But the coming years could bring a turn-around for the city.
While NAB is predicting Hobart property prices will remain flat next year, ANZ is tipping an approximate 3% uptick in 2024 and a 3% to 4% increase in 2025.
KPMG, meanwhile, is far more bullish on Hobart property.
It’s forecasting house prices to record an 11% jump in 2024 followed by a 14% surge in 2025, while unit prices have been tipped to climb 10% in both 2024 and 2025.
Whether such top-end forecasts will come to fruition is, of course, yet to be seen.
No doubt homebuyers and investors will be keeping a close eye on the island state’s capital in the new year and beyond.
As to where in the city, we’ve compiled expert opinions on the Hobart suburbs to watch in 2024. Let’s dive in.
Median price data sourced via Realestate.com.au and is accurate as at December 2023.
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Glenorchy, 7010
Those house hunting on a budget might be drawn to Glenorchy.
The suburb offers a “river view-water feel”, with River Derwent to the east, and “mountain vibes”, with Mount Wellington to the west, according to PRD chief economist Diaswati Mardiasmo.
“It’s considered to be quite affordable for both houses and units, which provides opportunities for first home buyers,” Dr Mardiasmo said.
- Median price: $570,000 for houses, $452,999 for units
- Median weekly rent: $540 for houses, $450 for units
North Hobart, 7000
Property prices in North Hobart have retracted to a reasonable level, representing “great buying right now”, according to McGrath Hobart Estate Agents principal and sales agent Garry Quan.
“It’s a small suburb with diverse styles of property that are always tightly held,” he told Savings.com.au.
“It has traditionally always been popular due to its close proximity to the CBD and North Hobart restaurant strip.
All kinds of buyers are attracted to the area, the expert notes.
While the majority are owner-occupiers, those looking to operate short term accommodation have taken to North Hobart in recent times, largely due to its central location.
“Prices will no doubt increase in the near future when the market recovers,” Mr Quan said.
- Median price: $833,500 for houses, data for units unavailable
- Median weekly rent: $600 for houses, $490 for units
Bellerive, 7018
For those looking for coastal vibes, Bellerive could present a notable opportunity in 2024.
“Stretching from Kangaroo Bay to Bellerive Esplanade, then onto Bellerive Beach, [the suburb has] lots of parks, cafes, and the like for family entertainment, as well as an AFL ground,” Dr Mardiasmo said.
While she notes that price wise, it stands above her other recommendations, the lifestyle the suburb offers may be worth the extra cost.
“There is a greater chance of people scoring a unit as opposed to a house,” she said.
- Median price: $902,500 for houses, $570,000 for units
- Median weekly rent: $600 for houses, $450 for units
Sandy Bay, 7005
“Sandy Bay is currently, in my view, oversold and undervalued,” Mr Quan said.
“Therefore, I think that this suburb should be on your watch list.
“Prices have come back and have now stabilised. The current market average prices represent great buying.”
Sandy Bay is one of the city’s premium suburbs, the real estate professional notes.
It offers established houses near Sandy Bay Beach and views of the Derwent River, the Tasman Bridge, Mount Wellington, and the casino, which changes colour by night.
“The older area of Sandy Bay is highly sought after given the character properties, close proximity to the University of Tasmania, and the shopping precinct,” Mr Quan said.
“It’s currently out of favour, but value will no doubt bounce back.”
- Median price: $1,245,000 for houses, $700,000 for units
- Median weekly rent: $650 for houses, $480 for units
New Town, 7008
If you’re looking to balance a manageable commute and buy in a family-friendly suburb, New Town might be worth checking out.
Located just four kilometres from the CBD, the area is considered one of the city’s oldest suburbs with plenty of incredible architecture, Dr Mardiasmo notes.
“Many people would say that New Town is safe, quiet, and inexpensive,” she said.
“It's family friendly, with some of the best schools around Hobart.
“It’s also close to the botanical gardens, which is a bonus.”
- Median price: $890,000 for houses, $500,000 for units
- Median weekly rent: $600 for houses, $420 for units
Image by Nico Smit on Unsplash.
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