Moonah – Why Now is a Great Time to Buy

Moonah Sign | 4one4 Property Co.

Moonah has emerged as one of the most exciting suburbs for property buyers in Tasmania. Located only a short drive from Hobart’s city centre, this suburb offers an enticing mix of affordability, lifestyle, and growth potential. Whether you’re a first-home buyer eager for a vibrant community or an investor seeking strong returns, Moonah presents a compelling opportunity in 2025. In this post, we’ll explore Moonah’s current property values and trends, what makes it attractive to buyers and investors, the local lifestyle and amenities, broader Tasmanian market trends, and how low interest rates in 2025 make now an ideal time to consider buying in Moonah.

Moonah’s Property Market: Values and Growth

Steady Growth: Moonah’s property market has shown remarkable resilience in recent times. As of late 2024, the median house price in Moonah sits around $620,000 – having climbed roughly 4–5% over the previous year. In the same period, units had a median around $450,000, up about 3% annually. In other words, Moonah bucked the trend by recording price growth for both houses and units during a year when many other Hobart suburbs saw values stagnate or fall. This growth has not gone unnoticed: property analysts have pointed to Moonah’s “strong resilience” in prices and even tipped it as a standout performer heading into 2025 (savings.com.au).

Recent Sales Trends: Demand in Moonah has been solid. Properties have tended to sell faster than in previous years, thanks to the suburb’s rising popularity. Limited supply of homes (housing inventory is relatively low) has helped support prices, creating a balanced market where well-priced listings attract plenty of interest. For example, over the past 12 months dozens of houses changed hands in Moonah, often within just a few weeks on the market. This healthy turnover, combined with upward price movement, gives sellers confidence – and for buyers it signals that investing sooner rather than later could mean benefiting from further growth ahead.

Projected Growth: Looking forward, Moonah’s outlook remains positive. Many experts predict that Moonah’s property values will continue on an upward trajectory in the near term. The suburb’s affordability (relative to inner Hobart) and ongoing buyer demand place it in a good position to keep climbing. In fact, one report noted Moonah was likely to be a “standout performer in 2025,” given how it outperformed the broader market last year. While no one has a crystal ball, the consensus is that Moonah’s combination of low supply, strong demand and lifestyle appeal should support further capital growth.

Why Moonah Appeals to First-Home Buyers and Investors

Moonah offers something special for both first-home buyers and property investors, making it a rare win-win suburb:

  • Affordability and Entry Point: For first-home buyers, Moonah provides a more accessible entry into the housing market than many other suburbs. Being just ~5 km from Hobart’s CBD yet with house prices often under $600,000, Moonah allows new buyers to get a foothold close to the city without the hefty price tag. The cost of living in Moonah is reasonable, and the streets are spacious and peaceful – ideal for young families starting out. In short, you can find a charming starter home here at a price that would be unheard of in Hobart’s inner suburbs, all while still enjoying quick access to the city for work or entertainment.
  • Lifestyle to Love: First-time buyers (and renters) are also drawn to Moonah’s lifestyle (more on that in the next section!). The suburb’s diverse mix of cafes, eateries, and community amenities gives it a trendy, up-and-coming vibe that especially appeals to younger buyers. Many young professionals and families are choosing Moonah because it offers a community feel with parks, shops, and services, without sacrificing on fun or convenience. It’s the kind of place where you can spend a Saturday morning at a local coffee shop and the afternoon at a nearby park with the kids – a perfect balance for those seeking their first home.
  • Strong Rental Yields: From an investor’s perspective, Moonah ticks important boxes too. Rental demand is solid in this area, thanks to its proximity to Hobart and growing popularity. Houses in Moonah currently yield around 4.5–5% rental return on average, while units can yield about 5% or more – healthy figures that mean investors can expect decent income from their property. The median weekly rent in Moonah is roughly $520 for houses and $440–470 for units, ensuring that landlords earn competitive rent relative to property values. With interest rates easing (more on this later), the prospect of positive cash flow or at least easily serviced mortgages is improving for investors.
  • Capital Growth Potential: Beyond the yields, investors are eyeing Moonah for its capital growth potential. It’s often described as an “up-and-coming” suburb, one that is still growing into its full potential. As Moonah attracts more residents – including interstate migrants and even some tourists or short-term visitors – the increased demand could further lift property values. The suburb’s ongoing gentrification and improvements (new cafes, shops, and possibly future developments) bode well for long-term appreciation. For investors, getting in now means the chance to ride that growth curve in the years ahead.

“Moonah has transformed into one of Hobart’s most promising areas for buyers,” says John McGregor, our local Moonah specialist at 4one4 Property Co. “First-home buyers love the area’s community feel and proximity to the city, while investors appreciate the solid rental yields and future growth potential Moonah offers.”

John’s on-the-ground perspective reflects exactly what we’re seeing – a suburb that offers the best of both worlds for different types of buyers. It’s this broad appeal that has propelled Moonah’s rise in popularity.

Local Lifestyle and Amenities in Moonah

One visit to Moonah and it’s easy to see why people fall in love with the area. The suburb boasts a vibrant local lifestyle with a mix of food, arts, and convenience that rivals trendier inner-city neighborhoods:

  • Café and Dining Scene: Moonah has developed a thriving café and restaurant scene, especially along Main Road (the suburb’s key street). Heck, We’ve even highlighted it in a previous Blog. And since then, things have only gotten better. You’ll find everything from cozy coffee spots to modern eateries. For instance, District B is a specialty coffee house beloved by locals for its expertly brewed coffee and friendly atmosphere. Back on the main Drag, Shake (Previously Shake a Leg Jr) offers artisan coffee and brunch fare that draws a crowd on weekends. Foodies aren’t left out either – St. Albi Bar & Eatery serves up acclaimed modern Australian cuisine and has become a go-to spot for dinner and drinks, while The Albert Brewery & Taproom is a recently opened craft brewery where you can enjoy a locally made lager or two. These popular venues are putting Moonah on the map as a culinary hotspot, adding to the suburb’s charm and weekend appeal
Turuu serving customer at District B | 4one4 Property Co.
Turuu serving a customer at District B
  • Shops and Services: Main Road Moonah (The area running from Florence and Amy Streets) is Jam packed with handy amenities. There are supermarkets, boutique shops, banks, and the post office; as well as gyms and health services – everything the community might need day-to-day in an easy to access spot. The convenience of having shopping and services within walking distance is a big plus for residents, especially those who want urban convenience without living right in the CBD.
  • Community and Culture: Moonah is also known for its community vibe and cultural scene. The Moonah Arts Centre, for example, is a local hub for arts and events, hosting exhibitions, workshops, and performances that enrich the community. There are parks and recreational facilities nearby (like the recently updated Benjafield Park or the Moonah Sports Centre) where locals can enjoy sports, playgrounds, and green space. Throughout the year, Moonah plays host to community events and markets that bring people together. This strong community atmosphere makes Moonah more than just a place to buy a house – it’s a place to call home.

Tasmanian Market Trends: The Bigger Picture

Moonah offers a lifestyle that blends suburban comfort with a touch of urban buzz. Residents can grab brunch at a hip café in the morning, do their shopping, take the dog for a walk in the park in the afternoon, and meet friends for a craft beer in the evening – all without leaving the suburb. That well-rounded lifestyle is a huge part of Moonah’s appeal, especially for younger buyers and families.

Zooming out, it’s helpful to look at the broader Tasmanian real estate market to understand why Moonah stands out right now. In recent years, Hobart (and Tasmania in general) saw a period of booming growth followed by a cooling-off:

  • Recent Market Cooldown: After peaking in early 2022, Hobart’s overall property values went through a slight correction. Through 2023 and into 2024, prices in the Hobart area softened a bit – the median dwelling price in greater Hobart dropped around 1% over the year to November 2024 (on top of about a 3% decline in 2023). In total, values were roughly 12% below the 2022 peak by late 2024 This cooldown was a response to rising interest rates and affordability pressures, and it was seen across many Tasmanian suburbs. Buyers became a bit more cautious, and the market shifted from the frenetic pace of 2021–2022 to a more balanced state in 2024.
  • Signs of Recovery in 2025: The good news is that by early 2025 the trend has started to turn positive again. Recent data shows that Hobart house prices are creeping back up – as of April 2025, the median Hobart house cost about $715,000, which is a 2.5% increase compared to a year prior. Regional Tasmanian areas have seen a similar gentle uptick. Unit prices in Hobart have been roughly flat, but steady. What this tells us is that the market is stabilizing and even modestly growing again after the dip. In fact, some real estate agencies in Hobart have reported very strong sales in early 2025, with record results in February and March – an indication that buyer confidence is returning. This broader trend gives extra confidence to anyone looking at Moonah: it’s always reassuring to invest in a suburb when the overall market momentum is positive.
  • Moonah’s Edge: Within this context, Moonah shines because it didn’t decline like many other areas did. While Hobart overall was treading water or slightly down in 2024, Moonah was charging ahead with price growth. That relative strength means Moonah has effectively leapt forward and could continue to benefit as the tide of the wider market rises again. Buyers investing in Moonah get the double advantage of a suburb with its own strong drivers plus the uplift from a recovering Hobart market. Not every suburb can claim that kind of edge.

Low Interest Rates Create Opportunity in 2025

Another key reason it’s a great time to invest in Moonah right now is the favorable interest rate environment. Across Australia, interest rates have begun to decline in 2025, easing one of the biggest pressures on buyers:

  • The Reserve Bank of Australia had raised rates in previous years, which put a squeeze on borrowing power. However, as inflation has come under control, 2025 has seen the tide turn – interest rates are trending down. In fact, economists have been expecting rate cuts in 2025, and as those cuts materialize, buyers are feeling the relief. Lower interest rates mean lower mortgage repayments and higher borrowing capacity, making it easier to secure a home loan and service it comfortably. For many first-home buyers, this could be the break they need to get their foot in the door, and for investors, cheaper finance improves cash flow.
  • Buying Power Up: Even a small drop in interest rates can significantly boost what a buyer can afford. For example, a reduction in mortgage rates increases the amount banks will lend (since the repayments on the same income are more manageable). Through 2025, as rates have ticked down, some buyers who were on the sidelines are now entering the market, armed with pre-approvals that are higher than they were a year ago. This increase in buying power is likely to translate into more competition for properties like those in Moonah – another reason to consider acting sooner. As one property economist noted, when interest rates fall, “borrowing capacities increase and mortgage repayments decline,” which can quickly flow through to renewed price growth in property marketsrealestate.com.au.
  • Refinancing and Investor Advantage: For existing homeowners or investors, the falling rates present an opportunity to refinance and potentially free up equity for the next purchase. Investors, in particular, may find 2025 a great year to expand their portfolio – with rates down, the cost of holding a property (or the hurdle for positive rental yield) is lower. Moonah, with its strong rents and reasonable prices, stands to benefit from this dynamic as savvy investors take advantage of improved lending conditions to buy in promising areas.

In summary, the continuing decline of interest rates in 2025 is a tailwind for anyone looking to buy property. It boosts affordability and can stimulate the market – and combined with Moonah’s already strong fundamentals, it creates a timely opportunity to invest in this suburb.

4one4 Property Co. – Your Local Glenorchy/Moonah Specialists

Thinking about investing in Moonah? You’re not alone – and having local experts on your side can make all the difference. Moonah sits within the City of Glenorchy, and here at 4one4 Property Co., we’ve built our reputation on knowing this area inside and out. We’ve spent years working across Glenorchy – Moonah included – and we’ve been lucky to help hundreds of buyers and sellers along the way.

We know what makes Moonah tick. From the streets that locals love, to upcoming developments, to what’s really driving property prices – our team has their finger on the pulse. Whether you’re a first-home buyer on the hunt for something affordable or an investor looking for that next golden opportunity, we’re here to help with genuine, expert advice every step of the way. Our Moonah specialist, John McGregor (who you heard from earlier), and the rest of the team are always happy to chat and answer any questions.

At the end of the day, Moonah is a suburb with a lot going for it – great value, a vibrant community, and solid growth potential. Prices are still accessible, interest rates are favourable, and buyer interest is on the rise. It really does feel like Moonah’s time to shine. So if you’re thinking about buying in Tasmania, take a closer look at Moonah – and don’t hesitate to reach out. We’d love to help you make your move.

Happy house-hunting!