Top Suburbs for Rental Yield in Tasmania
When investing in real estate, understanding the local market is important. Knowing the best places to invest can give you the advantage you need for a successful investment endeavour. Recently, Tasmania has seen an uptick in property values, which could bode well for interested investors.
Overview of the real estate market in Tasmania
PropTrack’s Home Price Index report shows the median value of all dwellings in Hobart at $699,000, which is a 7.6% annual increase and a 0.2% monthly increase in prices. Regional Tasmania sees a similar upward trend with median home value prices increasing by 6.7% annually and 0.6% monthly. The median home value in regional Tasmania is now $536,000.
Tasmania's real estate market’s recent uptrend can be attributed to several factors, including population growth, rising tourism, enhanced infrastructure projects, and an expanding local economy. All of these factors help drive population growth, which in turn increases housing demand.
If you’re looking for an investment opportunity, Tasmania offers affordable home prices and solid rental yields. Since prices are low, there’s a smaller barrier to entry for investors with lower budgets. Take note, however, that property values and rental yield percentages may be lower compared to more populous states.
Suburbs in Greater Hobart with the highest rental yield
Hobart has seen record growth, according to PropTrack’s latest report, in the last year. If trends hold, Hobart may offer investors better capital gains and better rental yields.
Even though Greater Hobart doesn’t offer the highest rental yields compared to other capital cities, it does offer consistency. Among its top-performing suburbs, both for houses and units, you’ll see only slight differences in yield percentages.
Before you start looking for your next investment property, take a look at the best-performing suburbs in Greater Hobart:
Best rental yield by suburb in Greater Hobart for houses
| Suburb | Region | Rental Yield | Median Rental Value |
|---|---|---|---|
| Gagebrook | Brighton | 6.5% | $522 |
| Bridgewater | Brighton | 6.0% | $520 |
| Risdon Vale | Hobart - North East | 5.7% | $529 |
| New Norfolk | Hobart - North West | 5.3% | $510 |
| Clarendon Vale | Hobart - North East | 5.3% | $544 |
| Chigwell | Hobart - North West | 5.2% | $548 |
| Glenorchy | Hobart - North West | 5.2% | $581 |
| Primrose Sands | Sorell – Dodges Ferry | 5.1% | $527 |
| Warrane | Hobart - North East | 5.1% | $577 |
| Claremont | Hobart - North West | 5.0% | $559 |
Source: Cotality Best of the Best 2025
What most of the suburbs on the list above have in common is their proximity to the CBD. It offers residents an affordable place to live while still being close to the perks and amenities the city has to offer.
Gagebrook has the highest rental yield with 6.5%, and Bridgewater is close behind at 6.0%. Both suburbs are found in the Brighton region. The median rental values in these suburbs are almost the same, with only a $71 difference between the Glenorchy ($581), the suburb with the largest median rental value, and New Norfolk ($510), the one with the lowest.
New Norfolk has the lowest median rental value among the top performers. It may be due to its distance from Hobart, being almost 36 kilometres away, while other suburbs on the list are 15 kilometres or less.
Best rental yield by suburb in Greater Hobart for units
| Suburb | Region | Rental Yield | Median Rental Value |
|---|---|---|---|
| New Town | Hobart Inner | 5.7% | $547 |
| Claremont | Hobart - North West | 5.6% | $497 |
| Glenorchy | Sorell - Dodges Ferry | 5.4% | $494 |
| Sorell | Hobart - North East | 5.1% | $499 |
| Lindisfarne | Hobart - South and West | 4.9% | $522 |
| Kingston | Hobart - North East | 4.8% | $514 |
| Howrah | Hobart - North East | 4.6% | $539 |
| Blackmans Bay | Hobart - South and West | 4.6% | $517 |
| Bellerive | Hobart - North East | 4.6% | $525 |
| West Hobart | Hobart Inner | 4.3% | $552 |
Source: Cotality Best of the Best 2025
The top-performing suburbs for units have rental yields ranging from 4.3% to 5.7%. Median rental values are also within a close range as they fall between $494 and $547.
The best rental yield suburbs for units are almost all in the Hobart region, as well. Whether it’s for houses or units, investing in the Hobart region may offer higher rental yields than areas outside of the Hobart area.
Suburbs in Regional Tasmania with the highest rental yield
Suburbs in Regional Tasmania are seeing slightly better rental yields than those in Greater Hobart. This could be due to differences in property values, population demographics, and cost of living. The higher rental yields can indicate more interest in Regional Tasmania, both from investors and renters.
The suburbs with the highest rental yields for houses and units can be found in Launceston and the North East, and the West and North West. Tourism is one of the driving factors of growth in both regions. The beautiful landscapes and gorgeous coastlines have done more than attract tourists, but may have also led to migration to these areas.
Best rental yield by suburb in Regional Tasmania for houses
| Suburb | Region | Rental Yield | Median Rental Value |
|---|---|---|---|
| Ravenswood | Launceston and North East | 6.0% | $474 |
| Mowbray | Launceston and North East | 5.6% | $499 |
| Mayfield | Launceston and North East | 5.5% | $495 |
| George Town | Launceston and North East | 5.5% | $429 |
| East Devonport | West and North West | 5.4% | $490 |
| Newnham | Launceston and North East | 5.3% | $514 |
| Invermay | Launceston and North East | 5.3% | $518 |
| Acton | West and North West | 5.2% | $418 |
| Upper Burnie | West and North West | 5.0% | $423 |
| Devonport | West and North West | 5.0% | $503 |
Source: Cotality Best of the Best 2025
Rental yields in Regional Tasmania suburbs for houses are comparable to those in Greater Hobart, both in rental yield and median rental value. Suburbs with the highest rental yields are usually found near Launceston and the North East CBD. It’s common for properties near the CBD to net higher yields because they’re often seen as more desirable properties.
Best rental yield by suburb in Regional Tasmania for units
| Suburb | Region | Rental Yield | Median Rental Value |
|---|---|---|---|
| Newnham | Launceston and North East | 5.7% | $412 |
| Devonport | West and North West | 5.7% | $404 |
| Riverside | Launceston and North East | 5.4% | $451 |
| Newstead | Launceston and North East | 5.4% | $437 |
| Prospect Vale | Launceston and North East | 5.3% | $461 |
| Wynyard | West and North West | 5.2% | $362 |
| Launceston | Launceston and North East | 5.0% | $463 |
| Trevallyn | Launceston and North East | 4.9% | $430 |
Source: Cotality Best of the Best 2025
There aren’t a lot of high-performing suburbs in Regional Tasmania for units. Even so, the ones that made it on the list have solid rental yields. Most suburbs, save for Trevallyn, have rental yields of 5.0% and above.
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