Melbourne Tipped to Lead 2026 Property Boom
Melbourne is poised to dominate Australia’s next property surge, with analysts forecasting a sharp rise in demand and prices by 2026. New data from KPMG reveals key suburbs and housing types that may outperform, driven by population growth, infrastructure investment, and easing interest rates.
Key Takeaways
- Melbourne is forecast to lead Australia’s 2026 property boom, according to KPMG.
- Suburbs with strong transport links and lifestyle appeal are expected to shine.
- House prices and apartment values may hit record highs by 2025–26.
- Early investors could benefit from growing demand and limited supply.
- Interest rate cuts and migration trends are fueling the upswing.
Why Melbourne Is Set to Lead the 2026 Property Boom
KPMG's latest analysis highlights Melbourne’s unique mix of economic recovery, population rebound, and housing undersupply. The city is expected to outpace Sydney and Brisbane in property price growth by 2026. A combination of lower interest rates, rising immigration, and planned infrastructure projects is setting the stage.
Key Insight: KPMG projects Melbourne house prices to rise 17.2% between mid-2023 and mid-2026—outpacing every other capital city.
This growth is not uniform. Inner and middle-ring suburbs with strong public transport and urban renewal plans are forecast to see the fastest appreciation. Notably, official forecasts from the Victorian Government show billions in infrastructure spending over the next few years, supporting this projection.
Melbourne Houses and Apartments to Shine in 2026: KPMG
Both detached houses and high-density apartments are set to benefit. Melbourne’s affordability compared to Sydney makes it attractive for first-home buyers and investors alike.
- Houses: Outer-suburban growth areas like Rockbank and Mickleham are expected to boom.
- Apartments: Inner-city precincts such as Docklands and Southbank may see renewed demand as overseas students and renters return.
“Melbourne’s combination of affordability, liveability, and infrastructure investment makes it a standout for 2026,” said Brendan Rynne, KPMG Chief Economist.
Further reinforcing this outlook, CoreLogic data shows Melbourne leading the nation in recent quarterly price momentum, particularly in emerging suburbs.
Melbourne House Prices: The Suburbs Booming After Rate Cuts
Recent and anticipated interest rate cuts are already influencing buyer sentiment. As borrowing costs ease, demand is rebounding, especially in growth corridors and lifestyle hubs.
Top-performing suburbs tipped for strong capital growth include:
- Werribee and Tarneit in the west
- Clyde and Cranbourne in the southeast
- Preston and Coburg in the north
- Brunswick and Footscray closer to the CBD
These areas offer a mix of affordability, access to transport, and strong rental yields.
Getting Ahead of Melbourne's 2026 Property Boom
Investors and homebuyers aiming to capitalise on the upswing should act early. With population growth returning to pre-pandemic levels, housing supply is struggling to keep pace.
- Focus on suburbs with planned rail or road upgrades
- Target areas with low vacancy rates and rising rents
- Consider both capital growth and rental return potential
Key Insight: Property prices tipped to hit record highs in 2025–26 could limit future affordability—making early entry crucial.
Melbourne’s property outlook remains one of the strongest nationally. As the 2026 boom builds momentum, strategic buyers stand to benefit most.