Hobart market still the cheapest, but growing quicker than any other capital

The Hobart housing market has soared 11.5 percent over the year, more than any other capital city, with its gross rental yields also competing with the bigger states.

With Melbourne the exception having grown just over 10 percent, the Hobart market has seen more than double the growth of the other capital cities.

Due to the affordability in Hobart, the gross rental yields are too stronger than Sydney or Melbourne.

Only second to Darwin (5.7 percent), the Hobart gross rental yield one of the strongest at five percent.

The price of the Sydney and Melbourne markets sees them with the worst yields. Sydney sits at 2.9 percent and Melbourne 2.6 percent.

CoreLogic's head of research Tim Lawless said the Hobart housing market has been the strongest performer over the past year.

"Over the past three months values have increased by 3.3% however, over the month, the 0.6% increase was much more moderate," he said.

"Low inventory levels against a backdrop of rising demand are a key driver of the Hobart market, with advertised stock levels 36.3% lower than a year ago."

Launceston and the north east of Tasmania, as well as the south east, have been among the top performers in the country away from the capital cities.