Donald Trump and a prison are major reasons why the Victorian housing market will boom in 2026.
More than a fifth of the Australian suburbs that will have the best property market performance by 2026 are affordable hubs in Victoria.
And one of the top choices has been chosen thanks to a local economy buoyed by prisons and an Australian deal with US President Donald Trump for rare earths.
From Clyde North and Cranbourne East, to Oakleigh, Port Melbourne and even Werribee and Williamstown in the west, 22 Melbourne suburbs have been tipped for a ripper run, as economists signal the city’s poor performance in recent years has left it ready for the new year.
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Beyond the big smoke, regional areas including Ararat, and the suburbs of Geelong, Ballarat and Bendigo, are also on the watchlist of some of the country’s top property experts.
Suburbs included in the realestate.com.au Hot 100 list were judged based on a combination of affordability and attractiveness to families, the level of amenities already in place, plus continued investment in infrastructure and home improvements.
Examples of expected price growth include significant population growth in Cranbourne East, a winning combination of family appeal and affordability in Ringwood East, and gentrification and infrastructure growth in Lalor.
![21 Timmins St, Ararat - for Herald Sun Real Estate](data:image/svg+xml,%3Csvg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 1280 720"%3E%3C/svg%3E)
21 Timmins St, Ararat, is for sale at $360,000 – $375,000.
15 Parkside Close, Lilydale, offers poolside living from $890,000 – $950,000.
Sarah Dowling of Realestate.com.au said after only 17 Victorian suburbs and towns made the list a year ago, the fact that 15 of this year’s 22 were in the state capital meant 2026 “could be the year for Melbourne”.
Ms Dowling added that Ararat is also listed as the most affordable of the country’s Hot 100 investment spots.
Propertyology’s Simon Pressley was among those to give the central Victorian city the nod.
After several years of boycotting the state due to the actions of the state government, Pressley said Ararat stood out because its growth potential would likely be driven by a strong overall manufacturing sector in the agricultural sector – but also by the US government’s interest in rare earth minerals, which were known to be present in the area.
3 Bakers Pde, Brunswick West, has an asking price of $1.15 million – $1.265 million and a three-bedroom floor plan.
10A Griffiths Court, Mount Waverley, shows what $1.95 to $2.05 million will get you in the suburb.
“And there is a large prison there; as an investor there is a workforce that is an employment center for the government, but it is a sector where you don’t have to worry about economic performance,” Mr Pressley said.
Ray White chief economist Nerida Conisbee said buyer’s agents across the country were seeing Melbourne and Victoria as “real hotspots at the moment”.
“There is a lot of talk that other areas, such as Perth, are at or near a threshold in terms of growth, but because Melbourne hasn’t changed much in recent years, there is quite a bit of movement from investors anticipating growth,” Conisbee said.
“So there is a view that it is quite well priced at this point.”
Real Estate Buyers Agents Association of Australia Victorian representative Matthew Scafidi said it was positive to see Victoria well represented after “going backwards for a number of years”.
7 Heales Rd, Cranbourne East, has an asking price of $740,000 – $810,000 and shows what you can get in the suburb.
Werribee has made the list two years in a row, and 3 Chirnside Ave shows what you can get there on a budget of $620,000-$670,000.
With Werribee on the list for two years in a row, Scafidi said it is worth noting that migration is a key driver of the state’s housing markets.
“But a lot of that is due to people wanting to see interest rate increases,” he said.
He added that property markets in Melbourne’s west, such as Footscray and Williamstown, and even Geelong, were also expected to benefit from the completion of the West Gate Tunnel and Metro Tunnel infrastructure projects.
Other experts who picked the suburbs included PropTrack economist Eleanor Creagh, Australian President Cate Bakos’ Property Investment Professionals, buyer advocates and a range of property company CEOs.
Victoria’s contenders for the top 100 Australian suburbs for real estate
Suburb Median house price
Ararat – $390,000
Brunswick West – $1,313 million
Carisbrook (Ballarat) – $495,000
Clyde North – $740,000
Cranbourne East — $735,000
Elsternwick – $1,935 million
Footscray – $916,000
Grovedale (Geelong) — $682,000
Herne Hill (Geelong) — $755,000
Huntly (Bendigo) – $599,000
Kennington (Bendigo) — $603,000
Lalor-$756,000
Lilydale – $861,000
Mildura – $520,000
Mount Waverley – $1.65 million
Oakleigh – $1,366 million
Port of Melbourne – $1,569 million
Ringwood East – $1,062 million
Delivery – $663,000
Werribee – $639,000
Williamstown – $1,566 million
Winter Valley – (Ballarat) $570,000
Source: realestate.com.au
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