Tasmania against the national trend

Smart Property Investment reported Tasmania’s three main centres growing while most of the country slowed, and cited PIPA’s view that yields are drawing investors to Launceston and the north-west.

What the figures showed

Mathew Williams reported for Smart Property Investment on the 11th of August 2026 that Hobart values rose 1.4 per cent in July, second only to Darwin, according to Cotality data. Annual growth in Hobart was 9.3 per cent, leaving values 0.7 per cent below their previous peak. Launceston and Devonport both recorded more than 12 per cent growth over the year.

Hobart’s annual rental growth of 8 per cent was the third highest in the country, as was its gross rental yield of 4.3 per cent.

The article cited PIPA’s observation that interest in Tasmania is not limited to owner-occupiers, with rental yields attracting investors, particularly in Launceston and the north-west. Cate Bakos, Chair of PIPA, gave a similar reading in her state by state assessment for news.com.au on the 4th of August, noting that Hobart remains resilient while buyers become more price sensitive. That assessment is covered in a cooling market, read state by state.

The case put for continued growth

McGrath Estate Agents founder John McGrath attributed the strength of the market to infrastructure. He put the state’s building and construction pipeline at almost $40 billion, and named the Hobart terminal expansion and a new 23,000 seat stadium. He also pointed to tourism, with more than 1.4 million visitors in the year to March and $3.8 billion in visitor spending, and said he expects Tasmania to continue to resist the slowdown.

Checks a smaller market requires

Launceston and Devonport are small markets by national standards. Fewer sales each year means that a small number of transactions can move the median, and that a seller may wait longer for a buyer when conditions turn. Growth of 12 per cent over a year in a market of that size should be read alongside the number of sales behind it.

Before relying on these figures, an investor should establish:

• The number of comparable sales in the street and suburb over the past two years, and the time each took to sell.
• The vacancy rate in the specific suburb, and how rental demand is spread across employers and industries.
• For each infrastructure project cited, whether it is funded, approved and under construction, or only announced. Each stage carries different weight in a price.
• The net yield after insurance, council rates, land tax and maintenance. A gross yield of 4.3 per cent in Hobart leaves less margin after costs than the headline suggests.

Rental growth of 8 per cent in a year also raises the question of how long tenants can absorb increases at that rate. Where rents rise faster than local incomes for an extended period, vacancies can rise and rental growth can slow. Local wage growth is therefore part of any assessment of the yield an investor can expect to hold.

Evidence to request

A recommendation to buy in Launceston, Devonport or Hobart on the strength of growth or infrastructure should be supported by sales evidence, vacancy data and the status of each project cited. Qualified Property Investment Advisers are bound by the PIPA Code of Conduct and can explain the evidence behind a recommendation.