Top 10 suburbs to look out for in 2026 

The McGrath Report 2026 revealed that lifestyle was a major factor for Australian buyers seeking accessibility to town centres, amenity-rich hubs, and public transport.

According to the 2024 Muval Index, 41 per cent of Australians' upcoming relocations in 2025 were motivated by lifestyle, which was a priority above work, housing, and money.

When it came to capital cities, Sydney continued to be Australia’s powerhouse market, recording 64 per cent of homes at a median value of $1 million or more, compared to 40 per cent in Brisbane, 31 per cent in Melbourne, and 12 per cent in Hobart.

Here are McGrath’s top suburbs:

Sydney and surrounds

Sans Souci

Located 17km south of Sydney’s CBD, McGrath said that Sans Souci offered home buyers a spot that would allow them to feel like they’re on vacation every day.

Currently, the median house price in San Souci is $2,600,000, while the median unit price is $1,127,995.

McGrath said that the area offered a blend of idyllic beachside lifestyle and the convenience of being close to major hubs.

“Part of the great southern suburbs of Sydney, on the water, and only 12 minutes to the airport on a good run, what more could you want?”, he said.

Haberfield

McGrath said that the area of Haberfield, in Sydney’s inner west, was a prime heritage suburb offering a mix of Federation homes, leafy streets and a slight multicultural atmosphere.

With a median house price of $2,830,000, McGrath said that Haberfield has been one of the inner west’s most tightly held pockets for decades.

“Just minutes to the CBD, families are drawn to the ‘garden suburb’ peppered with traditional Italian eateries and cafes. With so few homes trading hands, demand will always be its strong card,” he said.

Ashbury

According to McGrath, the inner west suburb of Ashbury is starting to rise in value, with buyers urged to get in quick to secure a good buy.

Bordering Dulwich Hill, the suburb has a median house price of $2,230,000, according to REA.

“Decent land allotments. Period homes. Great cafes emerging. It’s avoided the radar of the emerging wealthy until now,” McGrath said.

“If you’ve been priced out of Concord, try on this little hybrid suburb for size. You’ll wonder how you missed it until now!"

Melbourne and surrounds

West Melbourne

Located just to the north-west of the CBD, McGrath said West Melbourne had the right fundamentals for growth, with new infrastructure set to offer convenience and accessibility.

“The Metro Tunnel, due to open in late 2025, will place a new rail station just north of the suburb boundary, and the West Gate Tunnel will take heavy traffic off local streets,” he said.

Currently, the suburb’s median house price is $2,600,000, with its median unit price being $1,127,995.

Offering a range of housing options, such as period terraces alongside modern warehouse conversions, McGrath said the area would attract a range of buyers.

“With its ideal location alongside the Victoria Market, and within walking distance of the big smoke, expect big things from this small suburb popular with investors, young professionals and couples,” he said.

Essendon West

Essendon West, just 9km from the Melbourne CBD, offers a family-friendly atmosphere with a strong emphasis on lifestyle, according to McGrath.

“Known for its strong community, spacious homes, parkland, top schools, and excellent transport links, Essendon West is becoming increasingly popular with those seeking a calm and convenient lifestyle,” he said.

With a median price of $1,525,000 for houses and $850,500 for units, McGrath said the area offered an alternative to adjacent suburbs.

“It’s recorded both strong recent capital growth and its $1.46 million dwelling price sits well below that of neighbouring Essendon,” he said.

Carisbrook

The quiet town of Carisbrook, in Victoria’s historic Central Goldfields region, still offers relative affordability with a median house price of $560,000, according to McGrath.

“This heritage and tourism hotspot provides a laidback country lifestyle and small town charm, along with easy access to the major centre of Maryborough, just 7km to the west,” he said.

However, property seekers are urged to act quickly, as the affordable price tag is likely to attract investors and buyers alike.

Brisbane and surrounds

Coorparoo

Coorparoo, an inner-city Brisbane suburb, offers a vibrant village atmosphere, connectivity and proximity to the CBD, with strong potential for capital growth, according to McGrath.

Coorparoo’s median house price currently stands at $1.8 million, with its median unit price at $725,000.

McGrath said that, with a blend of classic charm and modern sophistication, families and professionals would be drawn to its unique character.

“The area is well supported by quality schools and a buzzing café scene, all set against leafy, tree-lined streets,” he said.

“Commuters benefit from direct access to major motorways, making travel north or south seamless.”

Mackay

McGrath said that North Queensland’s Mackay region has seen strong demand from investors and homebuyers, offering a relaxed coastal lifestyle and new infrastructure.

Known as the sugar capital of Australia, mining, agriculture, and tourism are at the forefront of Mackay’s robust economy.

McGrath said that recent demand was also fuelled by the $9 billion Bruce Highway upgrade and a major project to revitalise Mackay’s waterfront.

Currently, Mackay’s median house price stands at $540,000, with its median unit price being $358,000.

“A modern regional city with a strong sense of community, Mackay boasts a buzzing arts and culture scene, pristine beaches and world-class recreational fishing, making it increasingly attractive to both home buyers and investors,” he said.

Hobart and surrounds

Acton

Just 3km from the city centre of Burnie and the local port, the regional suburb of Acton has been highlighted as a standout in Tasmania’s property market.

McGrath said that a median rental yield of 5.4 per cent and a median home price increase of 94.9 per cent in five years have been catching the attention of investors.

“The suburb is drawing investor interest amid strong rental demand fuelled by infrastructure upgrades and clean energy investment,” he said.

West Launceston

Finally, McGrath said that West Launceston, just 2km from the Launceston CBD, was becoming increasingly popular among buyers seeking a premium lifestyle without the premium price tag.

He said that there was particular value for those seeking period homes, hillside views and direct access to the tourist attraction, Cataract Gorge.

“The suburb has a similar character to East Launceston, yet its $630,000 median home price is $270,000 cheaper than its more high-profile neighbour,” he said.

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