Hobart CBD TAS Property Investment

THE MARKET

Median house price in Hobart Cbd sits at $1,020,000 with 22 days on market and a 1.0% vacancy rate. This is a tight rental market right now.

- **Median house:** $1,020,000 | **Units:** $890,000 - **Gross yield:** 3.3% | **Net yield:** 1.8% - **5yr price CAGR:** -18.4%/yr | **3yr forecast:** -20.7%/yr - **Population:** 3,390 | **Owner-occupier rate:** 35% | **Affluence:** Very High

- **Supply pipeline:** Moderate — Development activity consistent with long-term averages

RENTAL SNAPSHOT

- **Vacancy:** 1.0% (worsening) | **Rental demand:** Very High - **Median weekly rent:** $640/wk | **Days on market:** 22 (improving) - Landlord market — rents likely to keep rising.

SHORT-TERM RENTAL

- **Median nightly rate:** $195/night | **Occupancy:** 70% - **Estimated annual STR gross:** ~$49,822/yr - **vs long-term rent:** $33,280/yr (+50% STR premium — factor in higher management costs)

INFRASTRUCTURE & CATALYSTS

- No major confirmed infrastructure projects on record. - **Transport:** Well-connected inner-city location

BULL CASE

If Hobart Cbd maintains 3%+ annual growth and vacancy stays below 0.8%, median prices could reach $1,173,000 within 3 years with yields compressing slightly as capital values rise.

BEAR CASE

A market correction or interest rate shock could see prices in Hobart Cbd pull back 10-15% from $1,020,000, with vacancy rising to 1.8% and rental yields softening as tenants gain leverage.

KEY RISKS

- Negative price growth suggests a softening market

COMPARABLE MARKETS

- **Bellerive** (TAS): $900,000 median, 3.5% yield, 8.8% 1yr growth - **Bicheno** (TAS): $810,000 median, 2.5% yield, 17.0% 1yr growth - **Blackmans Bay** (TAS): $807,000 median, 3.9% yield, -7.8% 1yr growth

THE PLAY

Hobart Cbd offers balanced fundamentals but does not present an urgent buying signal. The market is in a trough phase with low vacancy risk. Monitor vacancy trends and price movements over the next 6-12 months. Only enter if a property can be acquired at or below median pricing with yields exceeding 4.0%.

- Entry range: $918,000 – $1,122,000 - Minimum gross yield to target: 4.5% - Watch signal: vacancy staying below 2% and days on market holding under 35

This analysis is for informational purposes only and does not constitute financial, legal, or investment advice. Seek professional advice before making investment decisions.