John McGrath names housing hotspots in 2026 property report – realestate.com.au

Property guru John McGrath has named his top 20 suburbs for the coming year, with some shocking entries in the mix.

The established, cafe and transport-oriented markets he has favored in the past are joined by some interesting coastal locations and even a return to the Victorian goldfields.

The 2026 edition of the annual McGrath Report has been released, shedding light on some of the challenges facing the Australian housing market in both the short and long term.

“How is it that Australia – with this vast continent of ours – is in the grip of a housing crisis so severe that only 22 percent of Australians are satisfied with the availability of good, affordable housing?” McGrath asks in the report.

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Supply, or lack thereof, is a theme often mentioned in the report, along with the suggestion that we need to change the way we plan and develop new housing stock.

McGrath chose six suburbs from NSW and five from Queensland, Victoria and Tasmania as markets to watch in the coming year.

Ashbury is a suburb on the rise, according to John McGrath.

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N.S.W

ASHBURY

“This beautiful part of Sydney’s Inner West, bordering Dulwich Hill, is starting to rise in value, but you can still pick up a good buy if you’re quick. Decent allocations of land. Historic houses. Great cafes are emerging. It has so far avoided the radar of the emerging rich.”

TENNYSON POINT

“This little slice of waterfront paradise sits quietly next to its wealthy neighbor Hunters Hill with little or no fuss. Take a short drive to explore one of Sydney’s more charming waterfront enclaves.”

MORE:The full list of NSW suburbs

VIC

NORTHKOT

“In 2024, Time Out magazine named Northcote’s High Street the coolest street in the world. Northcote is an urban delight blessed with cozy bars, great restaurants and plentiful public and active transport links.”

ESSENDO WEST

“Located just 9km from Melbourne’s CBD, and with just under a third of its area set aside as open space, Essendon West is a family-friendly suburb on the rise. Known for its strong community, spacious homes and parks, top schools and excellent transport links, Essendon West is increasingly popular with those seeking a quiet and convenient lifestyle.”

MORE:The full list of Vic suburbs

Redcliffe has a lot of lifestyle appeal.

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QLD

COORPAROO

“With its vibrant village atmosphere, excellent connectivity and proximity to the Brisbane CBD, Coorparoo continues to demonstrate strong potential for capital growth. A blend of classic charm and modern sophistication, the mix of characterful Queenslanders and sleek architectural homes attracts families and professionals alike.”

REDCLIFFE

“Located in Brisbane’s highly sought-after Moreton Bay region, Redcliffe offers strong investment potential due to the appeal of its coastal lifestyle, ongoing infrastructure upgrades and proximity to Brisbane’s CBD. Buyers are attracted to its coastal lifestyle, improved infrastructure and affordability compared to inner-city suburbs, providing a continued demand and capital growth.”

MORE: The complete list of Qld suburbs

THAT

BATTERY POINT

“Despite its historic charm and waterfront lifestyle, this prestigious suburb is now trading at a discount. Over the year to June 2025, Battery Point’s average house price fell by 1.4 per cent to $1.38 million. Opportunities abound in this iconic locality, just a stone’s throw from Salamanca Market and Hobart CBD.”

MIDDLE POINT

“With the $47 million Hobart Airport Interchange completed and the $187 million causeway doubling underway, Midway Point is becoming one of Hobart’s most connected suburbs. Additionally, a relatively affordable median home price of $615,000 means Midway Point offers strong growth prospects as infrastructure catches up with demand.”

Other Tasmanian suburbs on the list included West Launceston, Miandetta and Acton.