Originally part of the traditional lands of the Pydairrerme people of the Oyster Bay Nation. Following European settlement, it served as a vital transit point for those travelling between Hobart and the Port Arthur penal settlement via the narrow isthmus at Eaglehawk Neck.
A quiet residential and holiday village characterized by a mix of modest coastal shacks and modern lifestyle properties overlooking Norfolk Bay.
- Stunning natural environment with direct access to boating and fishing.
- Highly affordable entry point for coastal property compared to mainland Australia.
- Quiet, peaceful atmosphere with minimal traffic and noise pollution.
- Strong sense of community among permanent residents.
- Proximity to world-class tourism sites like Port Arthur and Three Capes Track.
- Significant bushfire risk with limited evacuation routes via the Arthur Highway.
- Lack of town water and sewerage; properties rely on tanks and septic systems.
- Limited local employment opportunities requiring long commutes.
- High exposure to coastal winds and potential sea-level rise in waterfront zones.
- Very limited retail and healthcare services within a 30-minute drive.
How this suburb feels day-to-day.
Dominant dwelling stock.
Typical entry to ceiling.
Murdunna represents one of the last affordable coastal frontiers within an hour of Hobart. It appeals to those prioritizing lifestyle and nature over urban convenience, but requires a high degree of self-sufficiency.
$520k – $850k
N/A - Limited stock
12-month movement
Current asking rents
Prices have stabilized following the post-COVID boom but remain sensitive to interest rates and local infrastructure developments.
Price comparison
Median price รท median income
Estimated rental yield
While affordable in a capital city context, the lack of services and high maintenance costs (water/septic) should be factored into the budget.
Lower = tighter market
Avg time on market
Annual rental increase
Seasonal tourism workers, local tradespeople, and lifestyle renters.
Long-term rental yields are modest; most investors target the short-term holiday market (Airbnb) which sees high demand in summer but significant winter lulls.
- Ongoing expansion of Sorell as a regional hub.
- Increased remote work flexibility allowing for lifestyle-based relocation.
- Tourism growth in the Tasman Peninsula region.
- Limited supply of waterfront land in Southern Tasmania.
- Rising insurance premiums due to bushfire and coastal risks.
- Lack of planned major infrastructure or service upgrades.
- Economic sensitivity of the discretionary holiday-home market.
Steady but moderate growth expected as the Sorell corridor continues to develop. Murdunna will remain a niche market for lifestyle seekers rather than a high-volume investment hotspot.
vs last 12 months
Relative comparison
The main safety concern is road safety on the Arthur Highway and seasonal fire risks rather than criminal activity.
Environmental factors dominate the risk profile, specifically bushfire and coastal erosion.
Low riverine risk, but high risk of coastal inundation for properties within 2m of high tide level.
Extreme. The suburb is surrounded by dense sclerophyll forest with limited escape routes.
Increasingly difficult or expensive to obtain comprehensive cover for properties in high-risk bushfire zones.
Bushfire-Prone Area, Coastal Erosion Hazard, Landslip Hazard
Limited; mostly small-scale subdivisions of existing larger lots.
Strict environmental overlays significantly limit the ability to build or extend without expensive specialist reports.
Poor; car is essential. One bus route (737) provides limited daily service.
Basic; one general store/service station. No supermarkets or banks.
Excellent; surrounded by state forest and coastal reserves.
None; catchment for Dunalley Primary and Sorell School.
Limited; local clinic in Dunalley (10 mins), major hospital in Hobart (60 mins).
An older, stable population with a high proportion of retirees and part-time residents.
The high median age and ownership rate contribute to a quiet, community-focused atmosphere but may limit future demand for family-oriented services.
No major commercial or residential developments are currently planned for Murdunna.
- Preservation of the quiet, rural character.
- Minimal construction noise or disruption.
- Protection of local biodiversity.
- Stagnation of local services and amenities.
- Lack of new housing diversity.
- Continued reliance on external infrastructure.
Residents love the peace and the water access but acknowledge the challenges of living in a high-risk fire zone with few shops.
If you love fishing and don't mind driving for your milk, it's paradise. Just be prepared for the fire season.
The best place to unplug. The views over Norfolk Bay are world-class and the boat ramp is never too busy.
It's getting harder to manage as I get older. The drive to Sorell for a doctor is a bit much in winter.
Beautiful but isolated. Working from home is okay but the NBN can be patchy and the commute to Hobart is draining.
Plenty of work in the peninsula area if you're handy. Great spot to raise kids if you don't mind the school bus.
Summer is packed with tourists heading to Port Arthur. It's a great little earner for six months of the year.
- Prioritise properties with a high-quality rainwater tank system and modern septic.
- Request a current Bushfire Attack Level (BAL) assessment before making an offer.
- Check the condition of any private jetties or boat moorings as these are highly regulated.
- Investigate the 'Coastal Erosion Hazard' overlay if buying on the waterfront.
- Factor in the cost of a 4WD if you plan on exploring the surrounding state forests.
- Verify mobile reception and NBN availability for the specific street.
- What is the BAL (Bushfire Attack Level) rating for this specific dwelling?
- Is the septic system compliant with current council regulations?
- What is the total capacity of the rainwater tanks on the property?
- Has this property ever been affected by coastal inundation or high-tide flooding?
- Are there any easements or overlays that prevent further building or clearing?
- What is the current insurance premium for this property?
- How reliable is the internet and mobile coverage at this exact location?
- Is there a local community fire plan for this street?
- Ensure all bushfire mitigation (defensible space) is well-maintained before listing.
- Highlight any recent upgrades to water storage or filtration systems.
- Market the 'lifestyle' aspect—boating, fishing, and proximity to the Tasman Peninsula.
- Provide clear documentation on septic system servicing and compliance.
- Target Hobart-based buyers looking for a weekend retreat or 'shack' upgrade.
Position the property as a 'sanctuary' that offers a rare balance of coastal access and rural privacy, emphasizing the turnkey readiness of essential services like water and fire protection.
Murdunna is best suited for short-term holiday accommodation rather than long-term rentals.
High insurance costs, seasonal vacancy, and potential for environmental damage.
- Focus on properties with unique architectural character or direct water views.
- Install smart-home features for remote management of heating and security.
- Ensure the property meets all 'Visitor Accommodation' council requirements.
- Maintain a high standard of bushfire preparedness to protect the asset.
- Be prepared to manage your own water usage carefully during dry summers.
- Ensure you have a reliable vehicle and budget for significant fuel costs.
- Check if the landlord provides regular septic tank maintenance.
Unbeatable peace and access to nature for a relatively low weekly rent.
Isolation from social hubs and very limited delivery services (UberEats is non-existent).
- Vet tenants for their ability to live self-sufficiently in a rural setting.
- Provide clear instructions on how to operate water pumps and fire equipment.
- Consider including a basic garden maintenance service to ensure fire safety.
Ensure the property meets the Tasmanian Minimum Housing Standards, particularly regarding heating and ventilation in a damp coastal climate.
- The market is currently driven by 'sea-changers' from the mainland and Hobart locals.
- Waterfront properties command a significant premium and sell much faster than inland lots.
- Buyers are increasingly asking about insurance premiums and fire risk.
The 'Gateway to the Peninsula'—emphasize the proximity to Eaglehawk Neck and Port Arthur while maintaining a quiet home base.
Retirees, remote-working professionals, and Hobart-based families seeking a holiday home.
This report is for informational purposes only and does not constitute financial or legal advice. Data is based on 2026 projections and historical trends. Buyers should conduct their own independent inspections and consult with professional advisors.
