Australia’s property hotspots for 2026 named in expert housing guide

Three of the big four banks are expected rate hikes in the first half of 2026.

They’re the suburbs offering buyers better bang for their buck and the prospect of more equity gains over 2026.

A new LJ Hooker report has revealed the “suburbs to watch” next year in each state, based on analysis of prices relative to neighbouring areas, buyer trends and listing volumes.

A common theme among these areas was cheaper prices compared to neighbouring areas, along with an often lower volume of listings relative to buyer demand.

They also tended to have strong appeal from a diverse range of buyers including investors, first-home buyers and upgraders.

This suggested the areas would “outperform” the rest of the market, but report author Mathew Tiller, head of research at LJ Hooker, stressed these were not “boom” suburbs.

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Smaller capitals like Adelaide were expected to outperform Melbourne and Sydney.

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“They are just attractive places to buy in 2026 and because of that they will outperform,” he said.

Mr Tiller added that the changing interest rates outlook would shape buyer spending in 2026.

“Confidence had been growing with each rate cut this year but now that it looks like there will be no further rate cuts for some time, buyer activity will be more consistent,” he said.

It comes as Westpac and NAB revealed this week they expected rate hikes to occur in the first half of 2026. CBA had earlier forecast a first rate hike in February.

Mr Tiller said smaller and medium sized capital cities like Brisbane, Perth and Adelaide would see faster rises in prices next year than Sydney and Melbourne, but there would be pockets of strong growth in each state:

NEW SOUTH WALES

ST MARYS

St Marys sits in Sydney’s west, right in the Western Sydney Airport and new Metro corridor. First home buyers like that you can still buy a house in greater Sydney without leaving the city. Investors are watching rental demand and improved transport links. As new infrastructure lands, demand is expected to build rather than fade.

LEPPINGTON

Leppington sits in Sydney’s south‑west growth corridor, with new rail, schools and shopping following the population boom. The area is pulling in young families who want a new‑build home and a yard but still need access to major jobs.

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Sydney buyer activity has remained strong even as the rates outlook has changed. Picture: Rohan Kelly

There’s still relative affordability compared with Sydney’s inner and middle rings. More transport and town‑centre amenity are locked in, which supports demand into 2026.

PENRITH

Penrith has shifted from fringe suburb to its own major centre in Sydney’s outer west, with hospitals, education, retail and services all close by. Buyers like that they can live near jobs instead of commuting across the city.

House prices still sit under the Sydney wide median, so first home buyers and young upgraders are active. Western Sydney’s ongoing investment story underpins confidence in the area.

DULWICH HILL

Dulwich Hill delivers inner‑west lifestyle with character houses, cafés and both train and light rail into the CBD. It attracts upsizing families and downsizers who want amenity and walkability without heading into the east.

Listings are usually tight and well renovated homes are heavily contested. With limited new supply in established streets, the suburb continues to hold its value.

CALDERWOOD

Calderwood sits just inland from Shellharbour and Wollongong, offering new family housing, parks and community facilities in a lifestyle setting. It’s become a go‑to for young families priced out of the coast but still wanting beaches, schools and daily amenity.

The pipeline of local services is catching up quickly with the population. As Sydney buyers keep looking further south for value, Calderwood stays in play.

BOAMBEE EAST

Boambee East is part of the growing Coffs Harbour catchment, where lifestyle buyers are chasing coastal living without Byron Bay prices. Families like the school access, green space and proximity to jobs, health and the airport. Stock is lean, so good houses tend to move. Strong regional migration into the Mid North Coast is keeping pressure on prices and rents.

VICTORIA

WERRIBEE

Werribee sits in Melbourne’s south‑west and has become one of the city’s most affordable true house markets with rail access. Health, education and retail anchors in the area mean people can live and work locally. That appeals to first home buyers and young families who want a backyard without heading to the far fringe. Consistent sales activity shows real depth in demand, not just one‑off spikes.

CORIO

Corio offers Geelong access at a price point well below metro Melbourne, which is drawing first home buyers and investors. Local amenity and presentation are on the way up, and renovated homes are turning over quickly. Rental yields are generally stronger than inner‑metro Melbourne, giving holding income. As Geelong keeps adding jobs and infrastructure, spillover demand into Corio is expected to continue.

SUNSHINE WEST

Sunshine West is benefiting from the uplift across Melbourne’s inner‑west as buyers chase value within reach of jobs and transport. Renovated family homes are popular with both first home buyers and investors. Amenity keeps improving as the demographic shifts – more cafés, better services, stronger presentation. Many buyers see it as the ‘next suburb’ compared with already heated inner‑west postcodes.

TARNEIT

Tarneit is a population magnet in Melbourne’s west, with frequent rail into the CBD, plus schools and shopping already established. The price point is still within reach for first home buyers, so demand is broad. New supply is being absorbed by a steady flow of young families rather than sitting unsold. It’s seen as a practical, ready‑to‑move‑in alternative to buying land and waiting to build.

WINTER VALLEY

Winter Valley on the Ballarat fringe is delivering new family homes with space, schools and parks at a price well below Melbourne. It’s popular with young upgraders who want four bedrooms and a backyard, not an apartment. Ballarat’s lifestyle plus commute story continues to attract long‑term residents. Low rental vacancy and steady demand are helping support values.

QUEENSLAND

RIPLEY

Ripley sits in the Ipswich growth corridor and is being built out with schools, town centres and services alongside the housing. Freestanding homes are still relatively accessible for first home buyers. As Brisbane’s middle ring prices push people out, more buyers are looking west. Population growth and staged land release are helping support ongoing activity through 2026.

GRIFFIN

Griffin in Moreton Bay is popular with investors and young families because it balances rental demand with day‑to‑day liveability.

Queensland demand has been high this year. It is less sensitive to rate changes compared to Sydney and Melbourne.

Road and rail links open up work options across Brisbane’s north and into the CBD. Vacancy is tight, so well‑kept family homes lease quickly and yields tend to hold. New amenity in the area keeps strengthening the story.

BARINGA

Baringa is part of the new Aura community on the Sunshine Coast, which brings schools, parks and local jobs together in one planned area. Families like that it feels established rather than ‘promised’. Compared with traditional Sunshine Coast beach suburbs, modern family homes still look good value. Tight stock and strong migration into the Coast keep pressure on prices.

PETRIE

Petrie has been reshaped by the new university campus in Moreton Bay, which has lifted both local employment and rental demand. That education anchor sits alongside established rail, schools and town‑centre services. Owner‑occupiers like the stability and amenity, while investors like the steady tenant pool. Petrie now reads less like ‘outer north Brisbane’ and more like its own hub.

UPPER COOMERA

Upper Coomera keeps pulling in young families who want the Gold Coast lifestyle without beachfront prices.

Upper Coomera houses attract a mix of buyers.

Schools, shopping and quick M1 access keep local demand high from both locals and commuters. Turnover is steady because many buyers are trading up within the same catchment rather than leaving. Family rental demand across the northern Gold Coast remains solid.

SOUTH AUSTRALIA

MUNNO PARA WEST

Munno Para West sits in Adelaide’s northern growth corridor, where entry pricing is still within reach for first home buyers. New housing is being matched by real owner‑occupier demand, not just speculation.

Local services, schools and shopping keep improving as the population grows. That balance of affordability and amenity is driving steady sales.

MOUNT BARKER

Mount Barker is the heart of the Adelaide Hills growth story, offering a tree‑change feel with proper services. People can get a modern family home plus schools, shopping and health care without feeling remote. The commute back to Adelaide is still workable for many jobs, which broadens the buyer base. Demand is coming from upsizers and downsizers, which helps support values.

PORT ADELAIDE

Port Adelaide has moved from pure port to a mixed waterfront precinct, with bars, cafés and heritage buildings now part of the pitch. It attracts buyers who like character and employment access in the same postcode.

Port Adelaide real estate has a bright future.

Retail and hospitality upgrades have lifted liveability and helped shift the area’s reputation. Investors are watching tight rental conditions and the sense that the story still has room to run.

WESTERN AUSTRALIA

ALKIMOS

Alkimos sits on Perth’s fast‑growing northern coastal corridor and is getting the benefit of new rail alongside beachside living. Young families are targeting the area for modern homes close to schools, parks and the water.

Perth has been one of the strongest capital city markets over the past few years.

Prices are still well below Perth’s inner coastal suburbs. With transport improvements now delivered, Alkimos is firmly on buyer shortlists.

ELLENBROOK

Ellenbrook has gone from ‘too far out’ to properly connected, now that the long‑promised rail link into Perth is in place. It already had schools, shopping and community services, and transport was the missing piece. That shift has lifted confidence for both first home buyers and investors chasing rental demand. The result is solid interest at price points still below inner‑metro Perth.

BALDIVIS

Baldivis remains a high‑demand family suburb south of Perth, with established schools, shopping and green space. The value story is simple: more house and more land for less money than the inner city. Owner‑occupier depth keeps sales moving even when investors are quieter. That stability has made Baldivis a consistent performer in Perth’s south‑west corridor.

TASMANIA

DEVONPORT

Devonport is a working port city with steady demand from people chasing lifestyle plus real employment, not just holiday‑home appeal.

Waterfront access, health and logistics jobs, and relatively affordable pricing are keeping first home buyers in the market. Rental demand has been reliable, which appeals to investors. With limited new stock coming through, there’s a natural floor under values.

SORELL

Sorell is effectively the gateway to Hobart’s eastern side and the Tasman Peninsula, and recent road upgrades have made the run into town easier. Families like the newer housing, schools and shopping without paying inner‑Hobart money. Downsizers also target the area for single‑level homes and convenience. Population growth around Greater Hobart continues to put pressure on available stock.

BRIGHTON

Brighton sits in Hobart’s northern growth corridor and has become a go‑to for first home buyers chasing a freestanding house at an achievable price.

The Hobart market has been in recovery mode.

Industrial and logistics investment nearby means there are real local jobs, not just lifestyle buyers. New community infrastructure and schools have lifted day‑to‑day liveability. With limited comparable options at the same price point, inquiry has stayed strong.

NORTHERN TERRITORY

ZUCCOLI

Zuccoli in Palmerston is popular with young families who want a newer home, schools and parks without stretching to inner‑Darwin prices.

There’s strong rental demand from defence, health and services workers. Detached houses are still comparatively attainable by northern Australian standards. That mix of liveability and yield keeps both homeowners and investors interested.

ROSEBERY

Rosebery attracts local upgraders who want a family home close to schools, open space and Palmerston services. Buyers see it as good value compared with Darwin’s inner suburbs, but still within reach of work. The owner‑occupier base is solid, which helps support values in softer cycles. Well‑presented houses tend to move without sitting for long.

PARAP

Parap is one of Darwin’s lifestyle suburbs, known for cafés, the weekend markets and easy access to the waterfront. Units here appeal to investors chasing yield and to downsizers who want low‑maintenance living close to amenity. The suburb draws professionals who want to be near the city but still have that tropical village feel. Rental demand in this pocket has stayed consistently tight.

AUSTRALIAN CAPITAL TERRITORY

BONYTHON

Bonython sits next to the Tuggeranong town centre, so residents get shops, services and transport close by. The suburb has a mix of freestanding homes and townhouses that suits both investors and young families. Low rental vacancy and steady day‑to‑day amenity have supported values. It’s seen as a practical, good‑value alternative to Canberra’s inner south and inner north.

GIRALANG

Giralang in the Belconnen area is a long‑time family favourite, with established streets, schools and parks. It’s attracting both upgraders and downsizers who want a central‑north position without full Inner North prices. Stock on market is usually tight, which has helped support prices even when the broader market cools. Buyers like that it’s quiet, practical and still well connected.

DENMAN PROSPECT

Denman Prospect is part of Canberra’s Molonglo Valley expansion and already feels like its own community, with new schooling, shops and daily services. It appeals to families who want a high‑spec modern home without going through a full custom build. Views, green space and improving local amenity are a big part of the pitch. As Molonglo keeps building out, Denman Prospect has become one of the benchmark addresses in that corridor.