• Hobart’s stable economic background, affordable cost of living, attractive rental yields and thriving tourism sector have allowed property owners to generate a nice passive income through rental properties.
• Explore the top 10 profitable suburbs for real estate investments around Hobart, along with relevant Airbnb metrics for each area.
• Airbnb hosts can potentially earn an annual revenue of A$95,675 with an occupancy rate of 88% for a 2-bedroom property in Hobart as confirmed by Airbtics’ free Airbnb calculator. 

Hobart’s Top Airbnb Suburbs: Where to Find the Best Opportunities

Nestled in the island state of Tasmania, Australia along the estuary of the River Derwent, it’s Hobart, the Tasmanian financial and administrative hub. This port city is known for its breathtaking natural landscapes where you can appreciate an imposing skyline dominated by the Kunanyi/Mt Wellington. Hobart also features a unique historical charm and laid-back lifestyle that is appealing to many.

The Tasmanian state capital attracts a great influx of overnight visitors annually, allowing the area to generate a consistent demand for rental properties. This not only makes Hobart a top rental market in Tasmania but also one of the most profitable cities to invest in Airbnb in Australia!

Wondering which suburbs in Hobart offer the best investment opportunities for short-term stays? Here, we unveil the best suburbs to invest in Airbnb in Hobart and what expectations to have for real estate investments here. Continue reading to learn more.

Why should you consider buying an investment property in Hobart?

Tasmanian cities are an interesting market to invest in from the perspective of property investors if we consider the many advantages it offers. Check out some of the major reasons why rental properties in Tasmania can be a profitable idea: 

• Booming real estate market

Hobart has experienced steady growth in its real estate market for a while now. Demand for property has been on the rise, resulting in an increase in prices as well as higher investment returns. Tasmania’s population is projected to continue to grow over the next few years, which will continue to drive demand for housing.

Although property prices have skyrocketed, Hobart remains an affordable option compared to other major cities in Australia, such as Sydney or Melbourne. This means you can find properties at relatively lower prices, which increases your chances of solid investment returns. The average price in Hobart property market is A$817,500.

• Solid rental market

If you’re looking to invest in rental properties in Hobart, you have an eye for profitable locations! The demand for rentals in Hobart is high as the city is packed with students and young professionals who want to live in a peaceful and attractive area. Thus, renting a place in Hobart can be a great way to make passive income.

Moreover, it should be known that Hobart also has a high investment potential if you’re looking to cater to tourist or student accommodations. The city is home to renowned educational institutions that attract many students. Hobart also features a booming tourism industry and welcomes a high flow of visitors, which increases the demand for short-term stays. This can be an excellent opportunity to invest in property and take advantage of the growing tourism & student sector.

• Stable & diverse economy

Overall, the Tasmanian economy has performed exceptionally well in the last few years. In fact, it was recognized as one of the top-performing economies in Australia according to CommSec. As the state capital, Hobart is a major contributor the the GSP.

Hobart enjoys a stable economy, encompassing a variety of industries, ranging from tourism and agriculture to manufacturing and education, as well as government services, which all contribute to the city’s economic prosperity. 

• Great living conditions

Hobart is known for being a great place to live in Australia for many reasons. It’s a safe and friendly city with a laid-back atmosphere. Plus, there’s less traffic and a lower population density than other major metropolitan areas in Australia. Additionally, Hobart has excellent educational institutions, including the University of Tasmania. This opens the doors for higher education and academic development opportunities!

• There’s no lack of leisure options

If you’re eager to explore the picturesque island of Tasmania, then Hobart is a perfect starting point! The city sits in a stunning natural environment, being surrounded by mountains, such as Mt Wellington and also overlooks the Derwent River, one of Australia’s most striking rivers. There’s a wealth of natural areas to explore, such as national parks like Wineglass Bay National Park, dazzling beaches and a variety of walking and hiking paths.

Despite its small size, Hobart is home to a vibrant cultural and artistic scene. It’s renowned for its international festivals such as the iconic MONA FOMA arts festival. The city also boasts sites of interest, with a variety of art galleries, museums, theatres and live music facilities.

Is Airbnb Profitable in Hobart?

Wondering whether Airbnb investments in Hobart are worth your time and money? Allow us to confirm that they are indeed worth it! In fact, Hobart owns the first place in the rank of best places to invest in Airbnb in Tasmania!

Let’s have a glimpse of Hobart’s Airbnb market – According to Airbtics’ free Airbnb calculator data, an Airbnb host can obtain annual revenue of A$95,675 with a steady occupancy rate of 88% for operating a 2-bedroom property in the Tasmanian capital.