First published 24 Oct 2026, 6:00am
A new report has flagged Sunshine, Werribee, Reservoir, Boronia and Highett as the Melbourne suburbs set to be strong contenders in the 2027 market.
Five budget suburbs including an emerging hot spot in Melbourne’s west dubbed one of city’s best-kept property secrets have been tipped for a bumper 2027.
McGrath Estate Agents founder John McGrath highlighted Sunshine, Werribee, Reservoir, Boronia and Highett among his Victorian suburbs to watch in the annual McGrath Report, released on Saturday.
Mr McGrath nominated multicultural Sunshine, with an $850,000 median house price as offering plenty of choice in Melbourne’s west including terrace homes and 1920s Californian bungalows.
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“Its days as one of Melbourne’s best-kept property secrets may be numbered,” Mr McGrath said.
Sunshine is set to become a major stop on the future Melbourne Airport Rail Link with pre-stage one works underway to transform the suburb’s train station into a transport super hub, including two new platforms and capacity for 1000 trains a day.
Local agents expect the project will increase demand for homes, driving up prices in the area.
Melbourne-based Advantage Property Consulting director and buyers’ advocate Frank Valentic said infrastructure improvements had already lead to heightened interested in the suburb.
“We saw this when we bought a few whole blocks of units recent in nearby Sunshine North and Albion, as there was massive demand from our investor clients,” Mr Valentic said.
“We would expect prices to increase 30 to 20 per cent when the rail link opens.”
Renders of the how new Sunshine station super hub will look, once construction is finished. Picture: Supplied.
McGrath Estate Agents founder and chief executive John McGrath says Sunshine’s colourful dining scene, cultural festivals and proximity to Melbourne’s CBD put it high on buyers’ wish lists.
Ray White Sunshine director Marcus Fregonese said the $4.1bn first stage rebuild of Sunshine station was a game-changer for Sunshine’s profile and accessibility.
The Victorian government this week announced its preferred builder to build the six-platform Sunshine “super hub” as part of the wider Melbourne Airport Rail Link project by 2030.
“Historically, major transport infrastructure is one of the strongest long-term drivers of demand and value, and with the project now well and truly moving, I expect Sunshine to keep gaining traction over the next decade,” Mr Fregonese said.
“Savvy buyers and investors, many from interstate, have been quietly securing their foothold here over the last few years, recognising what’s coming.”
According to realestate.com.au, Melbourne’s median house price hit $960,000 in October.
Advantage Property Consulting director and buyers’ advocate Frank Valentic says Sunshine, Werribee, Boronia and Reservoir are set to boom as they are at the affordable, first-home buyers’ end of the market.
In addition, first-home buyers and young families priced out of Yarraville, Seddon and West Footscray, alongside upgraders looking for space and character, are moving to Sunshine, he said.
“The transformation has been remarkable, and gentrification is well and truly upon us,” Mr Fregonese said.
He said the local community spirit, multicultural population, schools and sports clubs made the area a great place to live.
Turning Sunshine station into a super hub will see an upgraded station carpark, two new regional platforms and station concourse, and additional lifts installed. Picture: David Crosling.
Douglas Kay Real Estate director Peter Kay said buying a house in Sunshine was usually between $200,000 to $500,000 cheaper than other suburbs 12km to 14km from the city.
“If you just look at it purely from a standpoint of geography, transport connections, affordability and government investment in rail, which is underway, it’s got all the ingredients to be an absolute powerhouse region,” Mr Kay said.
Buyers are not only drawn to Sunshine for its affordability but the amount of new jobs available at Sunshine and Footscray hospitals, plus employment in the infrastructure projects being rolled out in the west, he added.
There are 798 auctions scheduled in Melbourne this week, realestate.com.au data shows. Picture: Nicki Connolly.
Mr McGrath’s top five Melbourne suburbs have sub-$1m median house prices, apart from Highett at $1.415m.
But Mr McGrath described the “coastal hamlet” as a more accessible entry point to buying than nearby Hampton and Sandringham, where median house prices are above $2.25m.
He said Werribee, with a $674,000 median house price, was an increasingly attractive choice for families seeking value in Melbourne’s west with established schools, parklands and direct rail links to the CBD.
Ray White Sunshine’s Marcus Fregonese says Sunshine CBD itself is attracting significant investment beyond rail upgrades. Picture: David Clark.
Boronia, where a typical house costs $880,000, offers affordable options to buy into Melbourne’s outer east, Mr McGrath said.
And buyers priced out of Preston or Heidelberg are heading to Reservoir, with a $950,000 median for houses, he said.
Outside the Melbourne area, Mr McGrath also identified Mildure, Kyneton, Bendigo, Jan Juc and North Shore as markets set for growth in the year ahead.
Mr McGrath said while Australia’s overall property values decline was now on track to outpace its 2022–23 correction following the Covid pandemic, the worst was likely behind the market.
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