Tasmania has outperformed the rest of the country in a national property report, claiming five of the top 10 markets, with Glenorchy ranked number one.
The McGrath Local Residential Index for winter 2026 tracked demand, supply, pricing and rental trends across 191 markets to the first quarter of 2026.
Tasmania was the standout state, with Launceston placing second nationally, followed by Meander Valley in fourth, George Town in fifth and Devonport in seventh.
Glenorchy, in Hobart’s northern suburbs, recorded 22% growth in sales over the year, with homes selling in an average of 23 days.
Russell Yaxley, president of the Real Estate Institute of Tasmania, said the result was remarkable.
“This isn’t one suburb having a good quarter, it’s the whole state consistently punching above its weight,” he told Pulse.
“With five Tasmanian suburbs in the national top 10, with Glenorchy at number one and Launceston at number two is an extraordinary result.”
Yaxley said the state was attracting buyers looking for value without compromise.
“Tasmania is proving to Australia you can still buy an affordable, value rich home here, close to a city, without giving up lifestyle and that’s exactly what’s drawing buyers to markets like Glenorchy and Launceston,” he said.
Prices in Glenorchy grew 15.2%, weekly rents rose 9.9% and gross rental yield sat at 4.67%.
All five Tasmanian markets produced double-digit growth in both sales activity and prices, averaged fewer than 33 days on market and saw rental growth above 5%.
Non-capital markets accounted for nine of the top ten positions overall, with Victoria, Queensland and New South Wales filling the remaining spots.
Across the broader index, 80% of markets recorded rising annual sales while 85% saw homes sell faster, a trend McGrath put down to persistently low listing volumes.
The rental picture was particularly tight, with annual rental growth elevated in 93% of markets and vacancy rates sitting at 1.7%.
Michelle Ciesielski, national head of research at McGrath Estate Agents, said non-capital markets continued to outperform as buyers increasingly targeted more affordable areas.
“While capital growth has been widespread, the real story is the rental market, where elevated demand is driving strong rental growth across nearly all regions, even as yields remain more selective which highlights the ongoing supply-demand imbalance,” she said.
