James Nelis
Grovedale, VIC+18
Hobart · Inner Hobart
Nestled at the foot of kunanyi/Mount Wellington, South Hobart offers a picturesque blend of historic charm and vibrant, community-focused living just minutes from Hobart's CBD. The suburb is defined by its heritage streetscapes, leafy residential roads, and the scenic Hobart Rivulet, creating a tranquil yet connected atmosphere. Its proximity to both mountain trails and city amenities makes it a highly sought-after locale with a relaxed, artisan vibe.
Market snapshot
Price register · May 2026
Median house
$725,000 - $975,000
Mid-band $850Kspread 29%
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Create Your Free ProfileLast reviewed 13 May 2026
Median unit
$525,000 - $700,000
Mid-band $613Kspread 29%
Days on market
~20-46 days
Median listing-to-sold window. Shorter = tighter buyer field.
Auction clearance
Private-treaty market
Share of auctions sold. Brisbane skews private-treaty.
Rental yield
3.4% to 4.4%
Gross yield on house stock. Premium suburbs compress.
5-year house-price growth
+17% to +37%
cumulative since 2021Who buys here
Young professionals · Families · Academics and university staff
5-year trend
Modelled trajectory anchored on aggregated 5-year median figures. Indicative; not month-by-month observed data.
Market analysis
The South Hobart property market presents a compelling case for stability and long-term growth, characterised by structurally low supply and consistently high demand. As of May 2026, the median house price sits at $858,500, having experienced a slight annual adjustment of -0.9%, while units have shown remarkable strength with an 11.5% annual growth, reaching a median of $605,000. This divergence highlights a market where buyer appetite for relatively affordable, high-density living is robust, even as the premium house market consolidates after years of strong gains.
The suburb's fundamentals are exceptionally strong. A key driver is the chronic shortage of available properties for sale, with stock on market at just 0.24%. This scarcity, combined with a rapid sales cycle where houses average only 33 days on market, creates a competitive environment for buyers. Demand is further evidenced by a very low rental vacancy rate of just 0.53%, which underpins rental security for investors and points to a deep pool of potential future buyers. For investors, houses generate a rental yield of around 3.9%, with units performing even better at approximately 4.8%.
Recent market dynamics across Greater Hobart show a broader trend of recovery and steady growth, with the city-wide median dwelling value up 8.5% annually. South Hobart, with its high socio-economic profile (IRSAD score of 1057), is well-positioned to benefit from this momentum. The suburb attracts a mix of professionals, families, and academics, drawn by its lifestyle appeal and proximity to the CBD and University of Tasmania. While affordability is becoming a constraint—one report estimates it takes 39 years to own a home in the area—the desirability of the location continues to support price resilience. Limited new supply, due to both geographical constraints and a low building approvals ratio, ensures that this supply/demand imbalance is unlikely to change in the near term, favouring long-term capital appreciation for well-located properties.
With a rental vacancy rate below 1% and chronically low housing supply, South Hobart is a blue-chip market where high demand and lifestyle appeal underpin long-term value.
Why a buyers agent
In a market as tight as South Hobart's, with available stock on market sitting below 0.3%, a buyer's agent is not just an advantage—it's a necessity. Many of the suburb's most desirable properties transact off-market, changing hands through established agent networks long before they hit public portals. An expert on the ground provides access to these hidden opportunities. Furthermore, South Hobart's diverse topography and mix of heritage and modern homes create significant variations in value. A local specialist can discern the nuances between a home on a sunny, level block near the Rivulet and one on a steep, shaded hillside, factors that a typical buyer might overlook. They understand the complexities of heritage overlays, bushfire risk zones, and the subtle value drivers that define this unique, high-demand market.
Enjoy the best of both worlds with the Hobart CBD just a short walk or bus ride away, while having the natural splendour of kunanyi/Mount Wellington's trails at your doorstep.
The suburb has a vibrant local village with popular cafes, artisan shops, and essential services, fostering a tight-knit community feel. It's also home to excellent schools, making it ideal for families.
Extremely low housing supply, a rapid sales cycle, and a rental vacancy rate of just 0.53% create a high-demand, low-risk environment that supports long-term price growth and rental security.
South Hobart is renowned for its beautiful streetscapes featuring a mix of heritage-listed homes and modern architecture, all set against the stunning backdrop of the mountain and Hobart Rivulet.
Compare
| Metric | This suburbSouth Hobart | NearbyBattery Point | NearbyDynnyrne | NearbyHobart |
|---|---|---|---|---|
| Median house | $725,000 - $975,000 | $1.75M - $2.35M | $925,000 - $1.25M | $825,000 - $1.10M |
| Median unit | $525,000 - $700,000 | $575,000 - $750,000 | $450,000 - $600,000 | $675,000 - $900,000 |
| Auction clearance | — | — | — | — |
| Days on market | ~20-46 days | ~17-39 days | ~13-31 days | ~17-41 days |
| Year-on-year growth | -6% to +4% | +39% to +49% | +15% to +25% | +4% to +14% |
| 5-year growth | +17% to +37% | +34% to +54% | +36% to +56% | +12% to +32% |
| Rental yield | 3.4% to 4.4% | 3.0% to 4.0% | 3.1% to 4.1% | 3.8% to 4.8% |
| Postcode | 7004 | 7004 | 7005 | 7000 |
Snapshot date varies by suburb; see individual suburb pages for figures.
The place
South Hobart is a highly desirable inner suburb of Hobart, located just 2km from the CBD at the base of the majestic kunanyi/Mount Wellington. Its character is a rich tapestry of historic cottages, grand Victorian homes, and modern architectural designs, all set within a leafy, green environment defined by the Hobart Rivulet.
The suburb is a hub for education and families, served by the well-regarded South Hobart Primary School. For secondary education, students typically fall into the catchment for Taroona High School and then Hobart College for senior years. The area's demographic is highly educated, with over half the residents holding a tertiary qualification.
Transport is convenient, with several Metro Tasmania bus routes (including the 446, 447, 448, and 449) connecting the suburb to the city centre in minutes. For the active, a popular walking and cycling track runs alongside the Hobart Rivulet, providing a scenic, direct route to the CBD.
The local shopping and dining scene is vibrant and community-oriented. The 'SoHo' village along Macquarie Street features a collection of popular cafes, artisan bakeries, boutique shops, and the Salad Bowl grocer. A major landmark is the iconic Cascade Brewery, Australia's oldest, which offers tours and a bar set against a stunning mountain backdrop. Recreation opportunities are abundant, with numerous parks and direct access to the extensive network of walking and mountain biking trails on kunanyi/Mount Wellington.
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The 5-year trajectory is a modelled curve anchored on the documented cumulative growth rate. Editorial review: 13 May 2026. Updated quarterly.
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