Agents keeping an eye on emerging growth pockets will want to take note of John McGrath’s 2026 Property Report, which has named 20 suburbs to watch across Australia, from Sydney’s Inner West to Tasmania’s coastal fringe and even a revival in Victoria’s goldfields.
This year’s edition goes beyond suburb selections to examine one of the biggest questions facing the profession: how a country with so much land can be in such short supply.
“How is it that Australia — with this vast continent of ours — finds itself in the grip of a housing crisis so severe that only 22 per cent of Australians are satisfied with the availability of good and affordable housing?” McGrath asks.
“For Australians aged under 34, that figure drops to just 16%.”
The report calls for a rethink of planning and supply strategies as affordability pressures mount, urging agents, developers and policymakers alike to adapt to what Mr McGrath describes as “a chronic mismatch between demand and delivery.”
“After decades in this industry, I’ve learned that the housing market has three pillars. When one pillar falters, the entire structure become unstable. Right now, all three pillars are compromised: supply, affordability and construction viability.”
MARKETS TO WATCH
New South Wales: Established strength and lifestyle appeal
Ashbury – A tightly held pocket in Sydney’s Inner West bordered by Dulwich Hill. McGrath notes it’s “starting to edge up in value” but still offers opportunities for buyers seeking good land size, period homes and emerging cafés.
Tennyson Point – A quiet waterfront enclave next to Hunters Hill. McGrath describes it as “a little piece of paradise” that’s remained under the radar despite its proximity to prestige markets.
Newport Beach – Recognised as one of Sydney’s premier northern beaches. McGrath says it’s “peacefully tucked away but highly desirable,” and buyers who got in five years ago “have likely doubled their money.”
Haberfield – Known for its heritage homes and tree-lined streets. McGrath calls it “one of Sydney’s most liveable suburbs” with enduring demand and limited stock keeping prices strong.
Sans Souci – A coastal suburb popular with families and downsizers alike. McGrath highlights its strong community, local amenities and ongoing buyer demand for quality homes near the water.
Norah Head (Central Coast) – A long-time holiday spot now on the radar for permanent buyers. McGrath says many who “used to head there for weekends are now living there full-time,” drawn by affordability and lifestyle.
Victoria: Urban revival and regional value
Northcote – Named by Time Out as home to the “world’s coolest street,” Northcote’s High Street continues to drive demand with its bars, cafés and excellent transport links. McGrath describes it as “an urban delight” that remains highly attractive to professionals, creatives and investors.
West Melbourne – A growth pocket just north-west of the CBD, benefitting from the upcoming Metro Tunnel and new rail station. McGrath highlights its mix of period terraces and warehouse conversions, saying it’s “set for big things” thanks to strong connectivity and proximity to Victoria Market.
Essendon West – Just 9km from the CBD, this suburb offers spacious homes, top schools and abundant parkland. McGrath notes that its $1.46 million median price remains well below neighbouring Essendon, calling it “a calm and convenient lifestyle” choice for families.
Box Hill – About 14km east of Melbourne, Box Hill is described as a “cosmopolitan, family-friendly suburb” positioned for major growth through the Suburban Rail Loop and expanded housing options.
Carisbrook (Regional Victoria) – A heritage-rich township in the Central Goldfields, located near Maryborough. McGrath says it offers “a laidback country lifestyle and small-town charm,” with a median house price of $560,000 — appealing for buyers seeking affordability within reach of regional centres.
Queensland: Lifestyle and infrastructure driving demand
Coorparoo (Brisbane) – A blend of village atmosphere and strong connectivity makes Coorparoo one of Brisbane’s most consistent performers. McGrath highlights its “classic charm and modern sophistication,” with quality schools, leafy streets and easy access to major transport routes keeping demand strong among families and professionals.
Redcliffe (Brisbane) – Located in the Moreton Bay region, Redcliffe continues to attract buyers seeking affordability and coastal lifestyle appeal. McGrath cites its “ongoing infrastructure upgrades and proximity to Brisbane CBD” as key drivers of growth, noting its strong investment potential.
Clear Island Waters (Gold Coast) – An exclusive, high-income enclave near Mermaid Waters. McGrath calls it a “premium lakeside” address with “strong capital growth potential,” prized for privacy, security and proximity to golf courses, beaches and schools.
Peregian Beach (Sunshine Coast) – Known for its “natural beauty and unspoilt pristine beaches,” Peregian Beach attracts lifestyle buyers seeking community and coastal charm. McGrath says it is “well positioned for long-term capital growth” due to its location and appeal to families.
Mackay (North Queensland) – Described as a “modern regional city” with a diverse economy anchored in mining, agriculture and tourism. McGrath notes the $9 billion Bruce Highway waterfront upgrade as a major catalyst for growth, with Mackay’s “arts, culture and coastal lifestyle” making it increasingly attractive to both home buyers and investors.
Tasmania: Affordable opportunity meets infrastructure growth
Battery Point (Hobart) – One of Hobart’s most prestigious suburbs, now “trading at a discount.” McGrath notes its median house price fell 1.4 per cent over the year to June 2025, to $1.38 million, creating opportunities in an area prized for its heritage character and proximity to Salamanca Market and the CBD.
Midway Point (Hobart) – Fast becoming one of Hobart’s best-connected suburbs thanks to the completed $47 million airport interchange and ongoing $187 million causeway duplication. With a median dwelling price of $615,000, McGrath says it offers “strong growth prospects as infrastructure catches up with demand.”
West Launceston (Launceston) – Offering hillside views and proximity to Cataract Gorge, West Launceston delivers value compared with its eastern neighbour. McGrath highlights its $630,000 median home price — about $270,000 cheaper than East Launceston — and says it’s “increasingly popular among buyers wanting a premium lifestyle without the premium price tag.”
Miandetta (Devonport) – Poised for uplift with the new $50 million Stony Rise Village development, due for completion by Christmas 2026. McGrath points to the suburb’s retail and community facilities, plus its close access to Devonport’s CBD and waterfront.
Acton (Regional Tasmania) – Located near Burnie, Acton is gaining investor attention thanks to infrastructure upgrades and clean energy investment. McGrath notes a “median rental yield of 5.4 per cent” and a 94.9 per cent rise in home prices over five years, with a median house price of just $385,000.
