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The apple of my isle: Why investors should eye the Tassie market
While most markets across the country will see growth momentum slow down, the Tasmanian property market will continue to strengthen in 2026, bringing a wealth of opportunities for investors.
According to McGrath Estate Agents CEO John McGrath, Tasmania will continue its recovery, which began last year, as confidence in the region continues to be restored by strong public-sector investment and a notable tourism rebound.
McGrath said investors should keep a close eye on the island’s three major metropolitan cities, including Hobart, as both rental yields and capital gains are attractive to buyers.
The latest Cotality’s annual Home Value Index figures showed that Hobart has performed strongly in terms of value growth in recent years, growing by 6.8 and 6.7 per cent over the past two years.
Similarly, the city recorded a gross rental yield of 4.3 per cent after house rental prices rose by 6.7 per cent in 2025, the second-largest increase among capital cities, behind Darwin.
Apartment rents also rose strongly in Hobart, increasing by 9.3 per cent, which was the most significant change in unit prices nationwide.
“It’s true that Tasmania’s property values are still resulting in affordability challenges,” McGrath said.
“But in good news for Hobart’s property market, dwelling values are low by national standards, so there’s a window of opportunity for buyers.”
McGrath said that Tasmania continues to punch above its weight on economic indicators such as employment and tourism.
“Record-breaking visitor numbers boosted the state’s economy in 2025, with Tourism Tasmania noting that in the year to September, visitor numbers to the Apple Isle were up 4.1 per cent to 1.36 million – the first time they had surpassed pre-COVID-19 levels.”
Additionally, CommSec’s October 2025 State of the States report indicated that Tasmania had the strongest employment sector in the country over the past decade, with a jobless rate of 4 per cent.
Strong infrastructure investments across Tasmania have also driven the property market, with the construction of a new stadium and multiple major redevelopment projects set to continue boosting the state’s economy.
McGrath said that across the Apple Isle, investors should consider the suburbs of Battery Point or Midway Point in Hobart, West Launceston in Launceston, and Miandetta in Devonport.
“Launceston and Devonport are proving more accessible than Hobart for their lower property prices,” McGrath said.
“Only 2 km from the CBD, West Launceston is becoming increasingly popular among buyers wanting a premium lifestyle without the premium price tag.”
Outside of the metropolitan centres, McGrath said Acton had emerged as a standout in Tasmania’s property market.
“Just 3 km from Burnie’s city centre and a busy port, the suburb is drawing investor interest amid strong rental demand fuelled by infrastructure upgrades and clean energy investment.”
“And the clincher? A median house price of just $385,000,” McGrath concluded.