Tasmania's House-Unit Price Gap Hits New Heights in Hobart, Launceston

House values in Tasmania have pulled further ahead of units, with fresh figures showing the median price gap between the two property types reached a record high in June. The latest CoreLogic data puts Hobart’s median house price at $720,000-now $250,000 above the city’s median unit value of $470,000. Launceston, too, is posting a noteworthy divergence, with house prices climbing over 8 percent year-on-year, while unit values have held relatively steady.

Why This Matters in Tasmania Now

The divide has sharpened just as Tasmanian buyers regroup after a frenetic two-year lifestyle migration boom. Many locals, already squeezed by record-low vacancy rates and historically high rents, had pinned their hopes on units as a more accessible rung on the property ladder. Instead, rising interest rates and changing lending policies have cooled buying activity, with banks such as MyState now requiring larger deposits on unit purchases in multi-residential complexes, driving some would-be buyers toward houses or out of the market entirely.

Sandy Bay and Battery Point, long considered the premium end of Hobart’s market, are at the centre of this shift. Domain’s June quarter snapshot puts the median Sandy Bay house at $1.25 million, up nearly 10 percent on last year, while a typical unit in the same suburb now sits at just $590,000, barely above its 2023 price. On the city’s northern fringe, Cornelian Bay and Moonah are showing similar trends, with houses snapped up after brief auction campaigns and units lingering on agency books for months. Local agent EIS Property confirmed a steady flow of out-of-area buyers for freestanding homes in these suburbs, even as unit open home numbers have tailed off.

The Numbers: What the Data Reveals

Statewide, PropTrack’s June update measured Tasmania’s overall house median at $561,000, while units averaged just $434,000, pushing the differential above $125,000 for the first time. The Hobart City Council’s approved dwellings data for 2025 suggests that less than 22 percent of new builds will be units or townhouses-a drop from pre-2020 levels. Meanwhile, Launceston has seen its house median surge past $500,000 for the first time, according to PRD’s mid-year regional report, but the unit median has hovered between $345,000 and $360,000 for nearly 12 months. The numbers point to constrained supply for houses, especially established character homes on streets like St Georges Terrace (Battery Point) and Elphin Road (East Launceston), but an oversupply of units in central Hobart post-pandemic as several planned developments reach completion.

On the ground, the difference in demand is visible at open homes and auctions. Across June, fewer than one in four Hobart unit auctions sold under the hammer, according to the Real Estate Institute of Tasmania, compared to nearly 60 percent of house auctions finding buyers. Rental yields are also under pressure for unit investors, with city units now netting around 3.2 percent versus 3.8 percent for comparable houses, according to SQM Research.

What Buyers and Sellers Should Watch Next

For buyers, especially first-timers, the widening gap means houses are drifting further out of reach in sought-after areas, fueling interest in up-and-coming suburbs like Newnham (Launceston) and Glenorchy (Hobart). Some are switching focus to renovated townhouses, which have performed slightly better than older unit blocks. Sellers considering offloading houses in premium neighbourhoods may well see continued strong demand-particularly from interstate buyers-while unit owners are being advised by local agents to approach the market with realistic price expectations and flexibility on terms.

The next six months will see several major multi-unit projects complete in West Hobart and Sandy Bay, adding supply and potentially applying further pressure to unit values. Locals weighing their next move are being encouraged to carefully compare the carrying costs, saleability and rental appeal of houses versus units, with advice varying widely by postcode and property type. As the property landscape shifts, those keeping an eye on emerging pockets-like South Launceston and Kingston Beach-may be best placed to take advantage of the evolving price cycle.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.