Lillico vs South Hobart

The median house price is $865K in Lillico and $890K in South Hobart, so Lillico is the cheaper entry point, with South Hobart houses about 3% dearer.

On cash flow, South Hobart leads: houses there return a gross rental yield of 3.81%, compared with 2.96% in Lillico, a gap of 0.85 percentage points.

Over the past year house prices moved +7.8% in Lillico (an estimate) and +2.6% in South Hobart, so recent momentum favours Lillico, although both suburbs recorded growth.

Rental vacancy is 0.7% in South Hobart and 4.2% in Lillico, so landlords in South Hobart face less competition for tenants. Anything under 2% is generally read as a tight market where tenants compete for homes.

South Hobart is the bigger suburb, with a population of 5,886 against 24, roughly 245 times the size of Lillico; a larger suburb usually means a deeper pool of buyers and tenants.

In short: South Hobart for rental income, Lillico for a lower purchase price, Lillico for recent price momentum, South Hobart for the tighter rental market. Which matters more depends on whether the investor is buying for cash flow, capital growth or affordability.