McGrath Estate Agents has partnered with Hodges Real Estate, forming a new co-branded business called Hodges McGrath that will operate in Bayside Melbourne and Rye on the Mornington Peninsula.
Hodges was founded in 1854, making it the longest-operating real estate agency in Victoria, and John McGrath, CEO of McGrath, said the history behind the business was part of the appeal.
“Hodges remains the longest operating real estate agency in Victoria, having opened in 1854. It’s a company that’s steeped in history and 172 years on, remains, in John’s words, one of the most respected businesses in the country,” he said.
“And moving forward as we join forces with Hodges in Bayside Melbourne, we will be preserving their great heritage whilst integrating their team into Australia’s highest performing real estate group. And now with our partnership with Knight Frank it will give their team and clients access to a global market through the Knight Frank Private Office.”
Hodges directors Michael Cooney and Julian Augustini said the move followed a deliberate search for the right fit.
“This was a very considered decision for our business. We were looking for a partner who shared our culture and values, and who could help us continue to grow in a way that creates greater opportunities and outcomes for our clients. We found that alignment in McGrath, which we regard as one of Australia’s most progressive real estate groups,” they said.
“There is a strong synergy between our two companies, including the importance we place on our people. We both believe that attracting and retaining great professionals, and giving them the right environment to succeed, is key to delivering exceptional results for our clients. Hodges has always focused on our strong local relationships, with our people playing an important role in the communities they serve through long-standing grassroots connections and involvement.”
Fellow Hodges director Andrew Boyce agreed.
“It was important that we partnered with a company that also shared that commitment,” he said.
Hodges McGrath will consist of five Melbourne Bayside offices – Brighton, Sandringham, Beaumaris, Mentone and Bentleigh – covering suburbs from Elsternwick in the north to Mordialloc in the south and Bentleigh in the east.
Rye on the Mornington Peninsula will also co-brand into the new group, covering Rye, St Andrews Beach, Fingal and Tootgarook.
The partnership arrives as Melbourne’s population continues to grow. Australian Bureau of Statistics data shows Melbourne recorded the largest capital-city population increase of any Australian city in the most recent reporting period, adding more than 105,000 residents.
Melbourne was also recently named the third most liveable city in the world for 2026 in the Economist Intelligence Unit’s Global Liveability Index.
Chris Mourd, McGrath’s Head of Franchise Network, said the timing reflected a shift in the market.
“The signals are there for a new era for Melbourne real estate. The union of Hodges and McGrath brings together complimentary strengths to benefit vendors, and buyers in their property journey,” he said.
“For vendors, that means the local and trusted expertise that has defined the Hodges brand is now complemented by the scale and reach of a major national network with deep international roots. For Melbourne clients this means something simple but powerful: while property remains fundamentally local, buyer demand is increasingly global.”
According to Mr Augustini, Bayside Melbourne’s median house price currently ranges from $3.2 million in Brighton to $1.37 million in Mentone, while Rye on the Mornington Peninsula sits at a median of $950,000.
He expects Melbourne to see capital growth going forward, noting the city has lagged behind other capital cities in recent years.