Kingston is an area primed for growth, says John McGrath. Picture: Supplied

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FROM new schools to sports arenas to enviable beachside locations, there are endless factors that can make a property market surge.

And in his McGrath Report 2025, property expert John McGrath has put a spotlight on Tasmania’s best bets for growth in 2025.

In his report, McGrath Estate Agents managing director and chief executive, John McGrath, noted Hobart’s slower market over 2024, but he sees the softening as a potential advantage.

“Now the Tasmanian capital may be about to earn another label — the home of a comparatively affordable housing market,” he said.

Hobart finished FY24 with Australia’s second most affordable capital city median home price.

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Mr McGrath noted a “sense of optimism” in Tasmania with major construction projects such as the Bridgewater Bridge under way.

“Even more exciting is the proposed Macquarie Point Stadium, which will be a proud feature that will transform Hobart’s waterfront,” he said.

Mr McGrath said the real question for Hobart was whether the first homebuyer duty concession — which has been cut for established homes under $750,000 — alongside the infrastructure projects, will help turnaround the state’s low population growth, which has been the weakest of any state or territory.

The report spotlighted Launceston’s growing reputation as a cultural and gastronomic destination.

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Mr McGrath said Launie house buyers have been able to “nab a bargain” this year with a small 2.7 per cent price reduction across the northern capital.

As is the norm in Launceston, apartment values performed well, ticking upward by 2.3 per cent.

“On the north coast, Devonport is bracing itself for a development boom, including a $240m upgrade to the city’s port,” Mr McGrath said.

“It will boost the region’s economic prospects, making it a more desirable place in which to live and invest,” he said.

“Couple this with some of the most affordable home values in the state, and the prospects for the city look promising.”

MCGRATH REPORT 2025: JOHN MCGRATH’S TOP PICKS

Kingston – Hobart

Famous for its beach, this suburb’s location at the gateway to the Southern Outlet motorway means its residents can reach the city centre in just 10 minutes. With a huge amount of land still available for development and talk that it could be the location of a performance centre for Tasmania’s new AFL club, Kingston is an area primed for growth.

43 Osborne Esplanade, Kingston Beach is for sale by expressions of interest with Harrison Agents.

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No.60 Old Summerleas Rd, Kingston. TPR Property Group seeking $3.7m-plus.

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North Hobart – Hobart

Cool and vibrant, North Hobart attracts a hip crowd thanks to its night-life and trendy eateries. The predominantly older-style housing stock has been injected with new life recently thanks to luxe developments like The Rox which will lift the suburb’s profile and potentially edge it closer and closer to a $1 million median value.

1/1 Burnett St, North Hobart is listed with Ray White Hobart at $2.2m-plus.

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This historical gem at No.3-5 Swan St, North Hobart is listed with Peterswald and priced at $3.75m-plus.

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Legana – Launceston

Although considered to be on the outskirts of Launceston, this quaint semirural hub is in fact only a short 15 minute drive into the centre of town, making it perfect for those who want to feel a little removed from the bustle. What’s more, completion of the 350-place Legana Primary School at the start of the 2025 school year will be sure to attract young families to the suburb.

No.17 Acropolis Dr, Legana is for sale with McGrath, priced in the $1.2m-$1.275m range.

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No.12 Atkinsons Rd, Legana (Nutrien Harcourts). Offers over $2.35m.

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Latrobe – Devonport

Plenty of land releases and development in the past decade make this semirural pocket outside of Devonport a neighbourhood to watch. And if the 9.6 per cent jump in median house prices continues, it could prove a happy investment, particularly for first home buyers who will rejoice at the $581,000 median house value.

Elders Tasmania has No.27 Forest Hill Rd, Latrobe on the market at Offers over $980,000.

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McGrath has this acreage at 219 Joseph St, Latrobe priced at $1.3m.

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Primrose Sands – Regional Tasmania

A tiny seaside hamlet located midway between Hobart and Port Arthur, Primrose Sands has historically been best known for its affordable housing. It’s now emerging as a gentrifier hotspot with some new private apartment developments lodged with Sorell Council. Known for its beautiful beach, the median home value of $500,000 is predicted to take off in coming years.

No.14 Tecoma Rd, Primrose Sands (Fall Real Estate). Offers over $695,000.

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Petrusma Property has 12 Wedgetail St, Primrose Sands listed at Offers over $725,000.

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