There’s something stubbornly hopeful about the Tasmania property market 2025. You’d think that a federal election, local political upheaval, and the Reserve Bank dragging its heels on interest rate relief would slow people down. But here in the south, the opposite happened. Buyers kept buying, sellers kept selling, and confidence came roaring back.
The Real Estate Institute of Tasmania’s June 2025 Quarterly Report tells the story clearly. Southern Tasmania notched up its strongest quarter in 12 months. Let’s break it down—what the numbers mean, where the pressure points are, and why it matters for locals across Glenorchy, Moonah, Berriedale, Rosny, and beyond.
The Real Estate Institute of Tasmania’s June 2025 Quarterly Report gives us a clear picture of where things stand. Let’s walk through what’s happening, suburb by suburb and sector by sector, so you can see what it means if you’re planning to buy, sell, or hold in the months ahead.
Sales Are Surging Again
The standout number? Southern Tasmania notched up 1,249 property transactions over the quarter. That’s the strongest result in a year and represents more than half of all sales across the state. In dollar terms, the south recorded $875 million worth of property changing hands.
Houses did most of the heavy lifting:
- 919 houses sold in the south, with a median price of $695,000.
- That’s 16% more sales than the March quarter and nearly 100 more than this time last year
- The median crept up by $5,000 over the quarter but sat $5,000 below where it was a year ago.
It’s a reminder that volume drives the market mood as much as price does. More buyers, more contracts, more movement—it all points to renewed confidence.
The Top and Bottom of the Market
At the premium end, big numbers are back. 159 sales over $1 million were recorded in the south, up 17% on last quarter. Local buyers still dominate this bracket, accounting for four out of five purchases. Suburbs like Battery Point ($1.38m median), Sandy Bay ($1.34m), and Tranmere ($1.25m) remain benchmarks for prestige living
At the other end, affordability anchors are still there. Gagebrook’s median sat at $382,750, with Bridgewater at $430,000 and New Norfolk at $451,000. These markets continue to attract first home buyers and investors looking for value, though competition can be stiff given tight supply.
Price lines & affordability quirks
Median house price in the south ticked up $5K this quarter, now $695k; but still $5K less than June 2024. A subtle shift, maybe skewed by more sales in outer suburbs bringing the average down. State‑wide, the median price slipped 1.6% to $610K, though year‑on‑year it’s 1.7% in positive land.
Hobart eased by 0.7%, Launceston dropped 4.3%, but North‑West centres actually climbed 2.6%
Compared to mainland capitals? Tasmania’s still a bargain. Hobart’s median is half of Sydney’s, and $300K less than Melbourne, Brisbane, Adelaide, or Canberra. Plus, we’ve got the lowest rents of any Australian capital.
The Rental Squeeze
The rental market is where pressure is really felt.
- Vacancy rates in the south fell again, from 1.9% to 1.8%.
- Median rent stayed at $560 per week, unchanged from the March quarter but up $35 compared with last year
- Yields in the south sit at about 4.4%, solid for investors but not enough to offset the costs that have some landlords exiting.
With supply shrinking and demand steady, it’s hard to see rents easing. REIT has warned this trend is set to continue.
Who’s buying and selling in Tasmania
Investors came back in force. Southern Tasmania investor deals surged 49.5% (142 transactions), with median price up at $553,750. Mainland investors made up 31.4% of that, paying about $560K.
Then, mainland purchasers (not just investors) surged—204 purchases, up nearly 48%, and up 22% year‑on‑year, at a median price of $607,750. First home buyers? They leap‑frogged—from 196 to 221, buying at a median of $605K. And yet… there’s a worrying side: many existing investors are selling, feeding a shrinking rental pool at a time when we can’t afford it.
Economics & outlook
By June, the RBA cut the cash rate to 3.85%—a little tailwind for market sentiment. Housing costs edged down: loan repayments are 43.4% of median family income (‑0.1pp this quarter), but rentals took 26.8% (up 0.2pp).
First Home Owner Grants and Builder Boost? As of June 30, 379 applications turned into 392 grants worth $9.54 million.
So where does that leave Tasmania?
The June 2025 quarter felt like a turning point—like the market caught its breath then sprinted. Everything clicked: local buyers, first timers, mainland eyes, investors. But there’s a tension—investment is up, yet rental supply tightens when renters need more.
Why it matters for Glenorchy‑area people (and I’m talking specifically to folks in Glenorchy, Berriedale, Moonah, Rosny here, because that’s our backyard :
Affordability is still our ace. We’re still cheaper than the mainland. But as more people clock that, pressure builds. First‑home buyers are surging here—your neighbour’s starting out, because beachside suburbs like Sandy Bay and Battery Point will feel out of reach soon.
What to do? If you’re thinking of selling—yes, this could be your moment. Listings are down, demand’s up. But be smart. Know what a surge in middle‑ring suburbs looks like. If you’re buying or investing, remember rental stock is tight—maybe think long game, maybe focus on places where you can hold and profit via capital growth, not just rent yield.
If you need a helping hand figuring and weighing things out, feel free to contact our trusted real estate agents at 4one4 Property Co.
