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
After over two years of falling property prices, Tasmania's real estate seems to be in a state of recovery. PropTrack’s June 2025 Home Price Index report shows the median value of all dwellings in Hobart at $656,000, which is a 2.3% annual increase and a 0.5% monthly increase in prices. Regional Tasmania sees a similar upward trend with median home value prices increasing by 3.3% annually and 0.1% monthly. The median home value in regional Tasmania is now $507,000.
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 tremendous growth, according to PropTrack’s latest report, with a 32.9% increase in home values compared to the same time five years ago. If trends hold, Hobart could 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 | Hobart | 5.6% | $502 |
| Risdon Vale | Hobart | 5.6% | $503 |
| Chigwell | Hobart | 5.5% | $505 |
| Bridgewater | Hobart | 5.4% | $501 |
| New Norfolk | Hobart | 5.3% | $481 |
| Berriedale | Hobart | 5.2% | $511 |
| Warrane | Hobart | 5.2% | $543 |
| Mornington | Hobart | 5.2% | $547 |
| Claremont | Hobart | 5.1% | $521 |
| Glenorchy | Hobart | 5.1% | $541 |
Source: CoreLogic Best of the Best 2024 (December 2024) report
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 and Risdon Vale are tied for the top spot, both having a rental yield of 5.6%. The median rental values in these suburbs are almost the same, with Risdon Vale being only a dollar more than Gagebrook.
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 |
|---|---|---|---|
| Claremont | Hobart | 5.5% | $460 |
| Brighton | Hobart | 5.4% | $451 |
| Glenorchy | Hobart | 5.3% | $448 |
| Moonah | Hobart | 5.1% | $454 |
| Lenah Valley | Hobart | 4.6% | $475 |
| Lindisfarne | Hobart | 4.6% | $476 |
| Blackmans Bay | Hobart | 4.6% | $479 |
| Kingston | Hobart | 4.6% | $469 |
| Howrah | Hobart | 4.4% | $489 |
| Bellerive | Hobart | 4.3% | $480 |
Source: CoreLogic Best of the Best 2024 (December 2024) report
The best rental yield suburbs for units are all in the Hobart region, as well. Whether it’s for houses or units, investing in the Hobart region could offer higher rental yields than areas outside of the Hobart area.
There’s a bigger disparity between rental yields for units compared to houses. Some suburbs on the list above are well above 5% while others are only a few points past 4%.
Suburbs in Regional Tasmania with the highest rental yield
Suburbs in Regional Tasmania are seeing 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 coastline 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% | $437 |
| Mayfield | Launceston and North East | 5.9% | $463 |
| East Devonport | West and North West | 5.5% | $428 |
| Mowbray | Launceston and North East | 5.5% | $457 |
| Newnham | Launceston and North East | 5.4% | $479 |
| Acton | West and North West | 5.4% | $395 |
| George Town | Launceston and North East | 5.3% | $390 |
| Invermay | Launceston and North East | 5.1% | $476 |
| Summerhill | Launceston and North East | 4.9% | $504 |
| Devonport | West and North West | 4.9% | $434 |
Source: CoreLogic Best of the Best 2024 (December 2024) report
Rental yields in Regional Tasmania suburbs for houses are more diverse compared to Greater Hobart. Suburbs with the highest rental yields are usually found near the Launceston and North East CBD. It’s common for properties near the CBD to net higher yields because they’re 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 | 5.8% | $400 |
| Prospect Vale | Launceston and North East | 5.7% | $448 |
| Riverside | Launceston and North East | 5.3% | $409 |
| Devonport | West and North West | 5.1% | $371 |
| Newstead | Launceston and North East | 5.0% | $406 |
| Latrobe | West and North West | 4.8% | $393 |
| Launceston | Launceston and North East | 4.4% | $439 |
Source: CoreLogic Best of the Best 2024 (December 2024) report
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 Latrobe and Launceston, have rental yields above 5.0%.
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