First published 24 Oct 2026, 6:00am
John McGrath, founder and CEO of McGrath Estate Agents. Picture: John Feder
It’s not all doom and gloom in the property market, according to McGrath CEO and founder John McGrath.
The real estate guru has released the McGrath Report 2027, the latest instalment of his annual deep dive into the trends shaping the real estate world and analysis of the market for the year ahead.
“This is my eighth market correction since I entered the industry more than 40 years ago, and it feels like the fastest fall in values I can remember,” McGrath said. “The data companies are reporting single digit falls … but I can assure you that on the street, most big metropolitan markets are down 10-15 per cent in the past six months. Some are down 20 per cent.
MORE: Surprise suburbs where $3m homes will be the norm
“The good news for anyone looking for the end of this free fall? History suggests the big cities are close to the bottom.”
McGrath has outlined 40 suburbs he expects to experience growth over the year ahead, across New South Wales, Victoria, Queensland and Tasmania. The markets are a mix of metropolitan and regional locations.
Aerial view from Campsie, looking East towards the CBD. Picture: Max Mason-Hubers
“I steered you into Marrickville a few years ago when I declared it ‘the new Paddington’, McGrath said. “If you followed my lead, you would have doubled your money – and doubled it again.
“And with a wonderful cultural mix, I’d say Campsie may well be the new Marrickville.”
“A south coast gem, Narooma offers a lifestyle that many of us dream about,” McGrath said. “Pristine beaches, national parks, great cafes and now its first resort-style accommodation as Justin Hemmes’ Merivale Group has recently opened a luxurious ‘70s inspired motel, ‘The Whale’. With a median house price of $990,000, it offers great value when compared to other seaside towns.”
“Sunshine offers buyers plenty of choice, from terrace homes and 1920s Californian bungalows to contemporary apartments and designer-built houses,” he said.
“Its multicultural roots are evident in the colourful dining scene and cultural festivals … with its proximity to the city and established amenities, (its) days as one of Melbourne’s best-kept property secrets may be numbered.
“Located on the Murray River, Mildura has evolved into one of the state’s strongest regional growth centres. Its diverse economy spans agriculture, healthcare, construction and manufacturing, providing a solid foundation for jobs and long-term housing demand. “Mildura appeals to local first home buyers, tree-changers and retirees from Melbourne. The town’s population is expected to reach more than 66,000 residents in 2046, up from 56,792 in 2021, while employment is forecast to grow by 26.5 per cent between 2026 and 2046.”
Renders of the new Sunshine Station superhub. Picture: Supplied
“Beenleigh is well placed for growth as buyers continue to seek affordable alternatives within the rapidly expanding corridor between Brisbane and the Gold Coast.
“Significant transport connectivity, including rail and motorway access, underpins its appeal, along with ongoing investment in nearby employment hubs. The suburb also benefits from value-driven migration as neighbouring markets become less attainable.”
“An increasingly attractive option for buyers seeking more space and value without giving up connectivity to the Fraser Coast.
“With its heritage streetscapes, established schools and strong community, the town is benefiting from a wave of investment designed to improve liveability and unlock new housing opportunities. As coastal markets are pricier, Maryborough’s affordability, improving amenity and diverse local economy are helping position it as a market with long-term potential.”
Beenleigh has plenty of potential, McGrath believes.
“Just off the Brooker Highway, 15 minutes north of Hobart, Chigwell has spent years in the shadow of the more expensive neighbouring Glenorchy suburbs.
“(It has) easy access to Glenorchy’s shopping precinct, median house values just over $600,000 and a 5.3 per cent rental yield.”
“Mayfield offers exceptional value, with median house prices below $530,000 and easy access to the CBD, UTAS Newnham, Australian Maritime College and Mowbray shopping precinct.
“Even though home values increased 27.9 per cent last year, yields remain around 5.6 per cent, making Mayfield one of Launceston’s most appealing first homebuyer and investor markets.”
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