Hobart — the 12th-largest city in the country — has become one of the most expensive places for renters, latest industry figures show.

Hobart replaced Melbourne as the third-most expensive rental market, after to Sydney and Canberra. According to the latest rental market statistics from CoreLogic, the Tasmanian capital recorded a median weekly rent of $464 in the month, higher than Melbourne's $457.

Read more: Hobart A Top Place For Property Growth

The city also had the tightest rental vacancy rate at 0.6%, based on the September data from SQM Research.

Over the past year, Hobart witnessed apartment rents grow by as much as 11.7% to $403.60 weekly.

Despite the growth in Hobart's rental market, investors appear to be more inclined to invest in Brisbane, according to a recent survey by Property Investment Professionals of Australia. Only 2% of investors prefer to invest in Hobart.

National rents in Australia fell by 0.1% in September, bringing the median weekly rental value to $436. According to CoreLogic, the market has yet to absorb the oversupply in the market, leading to a decline in rents.