New data from PropTrack’s Home Price Index for December 2025 shows Australia’s housing market finishing the year at a new national record, with regional Tasmania the standout performer.
Across the country, the median home value in December edged up again to around $880,000, leaving prices almost 9% higher than a year ago. Growth has clearly slowed compared with earlier in 2025, but it hasn’t stopped.
National growth is cooling, not reversing
Capital city results were mixed over December. Sydney and Melbourne recorded modest monthly declines, and Canberra also slipped slightly, while Adelaide, Brisbane and Perth all posted further gains.
The bigger story is the changing pace:
- Price growth has eased in the final quarter of 2025 as affordability bites.
- Earlier in the year, three interest rate cuts helped support values.
- Looking ahead, rates are now expected to hold – or even rise again if inflation stays high, which is likely to keep a lid on how fast prices can grow in 2026.
So while prices are still nudging higher, the market is moving in a more measured way than the sharp upswing we saw in previous years.
Regional Tasmania is out in front
Regional markets are now clearly outperforming the capitals, and Tasmania is right at the front of that trend.
PropTrack reports that:
- Regional home prices nationally rose 0.4% in December, stronger than the combined capital cities.
- Over the year, regional prices have grown faster than the capitals – 9.8% versus 8.5%.
- Regional Tasmania recorded the strongest monthly result in the country, with prices up 0.9% in December alone.
For Tasmanian owners, this confirms what many are feeling on the ground: demand for lifestyle locations and regional centres remains strong, even as some big-city markets pause or step back.
What does this mean if you’re selling in Tasmania in 2026
For Tasmanian sellers, conditions remain broadly positive:
- Prices are higher than a year ago across every Australian market, and regional Tasmania is among the best performers.
- Regional areas are benefiting from buyers who still want space, lifestyle and relative affordability compared with mainland capitals.
- The slowdown in national growth suggests buyers are more price-sensitive, so accurate pricing and high-quality presentation matter more than ever.
If you’re considering a sale in 2026, this environment favours well-presented homes in good locations, particularly in regional and outer-suburban areas where buyers can see value.
Opportunities for buyers and first-home buyers
For Tasmanian buyers, especially first-home buyers, the picture is mixed:
- Slower growth compared with earlier in 2025 may offer a little more breathing room.
- At the same time, strong demand and limited supply are keeping upward pressure on prices, particularly in popular regional pockets.
- The Federal Government’s new 5% Deposit Scheme, launched in October 2025, allows eligible first-home buyers to purchase with as little as a 5% deposit under state-based price caps. That is likely to add extra competition at the more affordable end of the market.
In practice, this means well-priced homes under those thresholds could see stronger demand and faster growth than the broader market in 2026.
Looking ahead: steady rather than surging
PropTrack expects Tasmanian property prices to reach new record highs again in 2026, but at a slower pace than in 2025. Interest rate settings, persistent undersupply of new homes and ongoing population growth will all shape how that plays out in Tasmania.
For local owners and buyers, the key takeaways are:
- Regional Tasmania remains one of the country’s more resilient markets.
- Growth is likely to continue, but the days of rapid, double-digit annual gains may ease as affordability and rates bite.
- Choosing the right strategy – whether you’re selling, upgrading or buying your first home – is more important than timing the market perfectly.
If you’d like to understand what these trends mean for your property in Launceston, Hobart or regional Tasmania, our team can walk you through recent local sales, current buyer demand and the best way to position your home in 2026.
This article is general in nature and does not take into account your personal objectives, financial situation or needs. You should seek independent advice before making property or finance decisions.
