John McGrath has released his annual report for the year ahead. Picture: Julian Andrews
Real estate guru John McGrath has named his top 20 suburbs for the year ahead, with some shock entries in the mix.
The established, cafe and transport-centric markets he has favoured 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, casting a light over some of the challenges facing Australia’s housing markets in both the short and long term future.
“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 asks in the report.
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Supply, or the lack thereof, is a theme often mentioned in the report, along with the suggestion that we need to evolve the way we plan and develop new housing stock.
McGrath chose six suburbs from NSW and five each from Qld, Victoria and Tasmania, as markets to watch in the year ahead.
Ashbury is a suburb on the rise according to John McGrath.
NSW
ASHBURY
“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. It’s avoided the radar of the emerging wealthy until now.”
TENNYSON POINT
“This little waterfront piece of paradise is nestled quietly next to her wealthy neighbour Hunters Hill with little or no fanfare. Take a short drive to check out one of Sydney’s more charming waterfront enclaves.”
MORE:The full list of NSW suburbs
VIC
NORTHCOTE
“In 2024, Time Out magazine named Northcote’s High Street as the world’s coolest street. Northcote is an urban delight blessed with cosy bars, great restaurants and abundant public and active transport connections.”
ESSENDON WEST
“Located just 9km from the Melbourne 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 parkland, top schools and excellent transport links, Essendon West is becoming more popular with those looking for a calm and convenient lifestyle.”
MORE:The full list of Vic suburbs
Redcliffe has plenty of lifestyle appeal.
QLD
COORPAROO
“With its vibrant village atmosphere, excellent connectivity and closeness to the Brisbane CBD, Coorparoo continues to show strong potential for capital growth. A blend of classic charm and modern sophistication, its mix of character-filled Queenslanders and sleek architectural homes attracts both families and professionals.”
REDCLIFFE
“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. Buyers are drawn to its coastal lifestyle, upgraded infrastructure and affordability relative to inner-city suburbs, driving sustained demand and capital growth.”
MORE: The full list of Qld suburbs
TAS
BATTERY POINT
“Despite its heritage charm and waterfront lifestyle, this prestigious suburb is now trading at a discount. Over the year to June 2025, Battery Point’s median house price fell 1.4 per cent to $1.38 million. Opportunity abounds in this iconic locality just footsteps from Salamanca Market and Hobart CBD.”
MIDWAY 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. What’s more, a relatively affordable $615,000 median dwelling price means Midway Point offers strong growth prospects as infrastructure catches up with demand.”
Other Tasmanian suburbs to make the list were West Launceston, Miandetta and Acton.
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