Tasmania’s Property Market Strengthens: June 2025 Insights
Despite national uncertainty with a federal election, economic pressures, and no Reserve Bank interest rate relief, Tasmania’s property market posted its strongest results in 12 months. The Real Estate Institute of Tasmania (REIT) June 2025 Quarterly Report shows both Northern and Southern Tasmania recorded significant growth, underpinned by rising buyer confidence, surging mainland demand, and steady first home buyer activity.
Northern Tasmania: Strong Sales and Investor Growth
Northern Tasmania achieved 607 transactions valued at $335 million, its best quarterly result in a year. Highlights include:
- Number of house sales up 9.5% on the March quarter, with a median price of $550,000.
- Investor activity surged 56.5%, with more than half of investors from the mainland.
- Mainland buyer activity jumped 40%, reinforcing Launceston and surrounds as attractive alternatives to mainland markets.
- Rental vacancy tightened from 2.3% to 2.0%, with three-bedroom rents rising to $490 per week.
Southern Tasmania: Leading Statewide Activity
Southern Tasmania drove more than half of Tasmania’s property transactions with 1,249 sales worth $875 million. Key takeaways:
- House sales rose 16% compared to the March quarter, with a median price of $695,000.
- Investor activity grew 49.5%, though rental supply remains under pressure.
- Mainland purchaser numbers soared 47.8%, highlighting Hobart’s affordability compared with Sydney, Melbourne, and Brisbane.
- Rental vacancy slipped to 1.8%, with weekly rents holding at $560, up $35 annually.
Statewide Themes and REIT Commentary
REIT President Russell Yaxley noted that momentum is building across the state, with sales increasing, property supply tightening, and prices beginning to climb. While investor demand is positive, many existing landlords are selling due to rising costs and proposed rental legislation, leading to a shrinking rental pool. This creates opportunities for first-home buyers, but adds pressure for renters.
Compared to mainland markets, Tasmania remains at the more affordable end of the scale, with both house prices and rents significantly lower. This affordability is attracting strong interest from interstate buyers seeking lifestyle relocations and investment opportunities.
Looking Ahead
With confidence returning and affordability driving demand, the Tasmanian market is well-positioned for continued activity in the months ahead. However, the balance between supporting first home buyers and ensuring adequate rental supply remains a critical challenge.
For the full statewide data visit the Real Estate Institute of Tasmania’s reports.
