Real estate industry leader John McGrath (pictured) has unveiled his top 20 suburbs to watch in 2026, with several surprise entries joining his usual line-up of established inner-city and lifestyle markets.
The annual McGrath Report 2026, released this week, identifies new opportunities for buyers, investors, and developers while highlighting Australia’s deepening housing supply crisis.
“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 asked in the report.
He said addressing undersupply and evolving planning systems would be critical to restoring balance in the nation’s housing market, news.com.au reported.
According to McGrath, limited new housing, population growth, and infrastructure upgrades are reshaping where Australians choose to live and invest.
The report names six suburbs in NSW and five each in Queensland, Victoria, and Tasmania as markets with strong potential over the next 12 months.
“Supply, or the lack thereof, is a theme often mentioned in the report,” McGrath said, calling for innovation in how Australia plans and develops new housing stock.
McGrath’s New South Wales picks include Ashbury and Tennyson Point, two Sydney suburbs he believes are poised for value growth.
“This wonderful pocket of Sydney’s Inner West bordering Dulwich Hill is starting to edge up in value, but you can still bag a good buy if you’re quick. Decent land allotments. Period homes. Great cafes emerging,” McGrath said of Ashbury.
“It’s avoided the radar of the emerging wealthy until now.”
On Tennyson Point, McGrath described it as: “This little waterfront piece of paradise... nestled quietly next to her wealthy neighbour Hunters Hill with little or no fanfare.”
In Victoria, McGrath highlighted Northcote and Essendon West for their growing appeal.
“In 2024, Time Out magazine named Northcote’s High Street as the world’s coolest street,” he said. “Northcote is an urban delight blessed with cosy bars, great restaurants and abundant public and active transport connections.
“Located just 9km from the Melbourne CBD... Essendon West is a family-friendly suburb on the rise. Known for its strong community, spacious homes and parkland, top schools and excellent transport links.”
In Queensland, McGrath’s report points to Coorparoo and Redcliffe as standouts for both lifestyle and long-term investment.
“With its vibrant village atmosphere, excellent connectivity and closeness to the Brisbane CBD, Coorparoo continues to show strong potential for capital growth, ”McGrath said.
“Located in Brisbane’s highly sought-after Moreton Bay region, Redcliffe offers strong investment potential driven by its coastal lifestyle appeal, ongoing infrastructure upgrades, and proximity to Brisbane CBD.”
Tasmania also earned five mentions in the 2026 list, including Battery Point and Midway Point, both offering a mix of lifestyle value and growth opportunity.
“Despite its heritage charm and waterfront lifestyle, this prestigious suburb is now trading at a discount... Opportunity abounds in this iconic locality just footsteps from Salamanca Market and Hobart CBD,” McGrath said of Battery Point.
“With the $47 million Hobart Airport Interchange complete and the $187 million causeway duplication progressing, Midway Point is becoming one of Hobart’s most connected suburbs. A relatively affordable $615,000 median dwelling price means Midway Point offers strong growth prospects as infrastructure catches up with demand.”
Other Tasmanian markets named include West Launceston, Miandetta and Acton, which McGrath said combine affordability and connectivity as key drivers of growth.
For brokers, McGrath’s 2026 shortlist highlights emerging buyer interest in affordable, infrastructure-linked, and lifestyle-focused suburbs across multiple states.
With RBA rate cuts improving borrowing capacity and migration and supply shortages sustaining competition, these markets are expected to see continued lending activity into 2026.
Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
