Donald Trump and a prison are key reasons for one Victorian housing market to boom in 2026.
More than a fifth of the Aussie suburbs tipped for the best property market performance in 2026 are affordable hubs located in Victoria.
And one of the top picks has been called out 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 suburbs across Melbourne have been tipped for a ripper run as economists flag the city’s poor performance in recent years has left it primed for the new year.
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Outside of the big smoke, regional areas including Ararat, and suburbs of Geelong, Ballarat and Bendigo are also on the watch list for some of the nation’s top real estate experts.
Suburbs included in the realestate.com.au Hot 100 list were rated based on a combination of affordability as well as appeal to families, level of amenity already in place, plus ongoing infrastructure investment and improvement to homes.
Examples of why price growth is anticipated include hefty population growth in Cranbourne East, a winning combination of family appeal and affordability in Ringwood East and gentrification and infrastructure increases in Lalor.
21 Timmins St, Ararat, has been listed for sale at $360,000-$375,000.
15 Parkside Close, Lilydale, offers poolside living for $890,000-$950,000.
Realestate.com.au’s Sarah Dowling said after just 17 Victorian suburbs and towns were on the list a year ago, the fact that 15 of this year’s 22 were in the state’s capital meant 2026 “could be the year for Melbourne”.
Ms Dowling added that Ararat had also joined the list as the most affordable of the nation’s Hot 100 investment spots.
Propertyology’s Simon Pressley was among those to give the central Victorian town the nod.
After a number of years of boycotting the state due to the actions of the state government, Mr Pressley said Ararat stood out because its potential for growth was likely to be driven by a strong agribusiness sector general manufacturing — but also by the US government’s interest in rare earth minerals, which were known to be in the area.
3 Bakers Pde, Brunswick West, has a $1.15m-$1.265m asking price and a three-bedroom floorplan.
10A Griffiths Court, Mount Waverley, shows what $1.95m-$2.05m will get you in the suburb.
“And there’s a big prison there; as an investor there’s a workforce there that’s a government employment hub — but it’s one industry you don’t have to worry about the economic performance of,” Mr Pressley said.
Ray White chief economist Nerida Conisbee said buyers agents across the country were eyeing Melbourne and Victoria as “real hot spots at the moment”.
“There’s a lot of talk that other areas like Perth are at or near a threshold, in terms of growth, but because Melbourne hasn’t moved much in the past few years there’s quite a lot of movement from investors anticipating that it will grow,” Ms Conisbee said.
“So there’s a view that it is pretty 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 “a number of years going backwards”.
7 Heales Rd, Cranbourne East, has a $740,000-$810,000 asking price 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 a $620,000-$670,000 budget will get you there.
With Werribee making the list two years in a row, Mr Scafidi said it was worth noting migration was an important driver for the state’s housing markets.
“But a lot of it is down to people wanting to see the back of interest rate rises,” 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 picking the suburbs included PropTrack economist Eleanor Creagh, Property Investment Professionals of Australia president Cate Bakos, buyer’s advocates and a range of real estate firm chief executives.
Victoria’s contenders for Australia’s top 100 suburbs for property
Suburb Median house price
Ararat — $390,000
Brunswick West — $1.313m
Carisbrook (Ballarat) — $495,000
Clyde North — $740,000
Cranbourne East — $735,000
Elsternwick — $1.935m
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 — $1.65m
Oakleigh — $1.366m
Port Melbourne — $1.569m
Ringwood East — $1.062m
Tarneit — $663,000
Werribee — $639,000
Williamstown — $1.566m
Winter Valley — (Ballarat) $570,000
Source: realestate.com.au
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