Inner Melbourne emerges as a value play for 2026

By Our Reporter
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Terry Ryder, Director of Hotspotting

The search for the next wave of property growth has taken a sharper turn towards 2026, with Hotspotting founder Terry Ryder naming 17 areas already showing early signs of outperformance. His new assessment, drawn from two decades of studying local cycles and outlined in his book Why Property Values Rise, points to markets where economic depth, infrastructure investment and buyer demand are shaping the next phase.

Ryder argues that momentum rarely develops in isolation, and the new list reflects that pattern. Inner Melbourne features prominently, with three forces driving renewed interest. “These include the general upturn in the Victoria market after a couple of slow years that left Greater Melbourne with prices cheaper than Brisbane, much cheaper than Sydney and Canberra and on a par with Adelaide and Perth—and therefore good value for money,” he says. A strengthening economy, high population growth driven largely by overseas migration and major infrastructure spending have added further momentum. Ryder notes rising demand for apartments in Carlton, Kensington, North Melbourne and the CBD in 2025, helped by proximity to offices, two university campuses and a major hospitals precinct.

He links this to a broader principle that guides his analysis. “Locations that outperform the market averages have common qualities because I’ve made a particular study of them for the past 20 years—it’s been a crusade of sorts,” he writes. He says buyers often assume individual suburbs can sprint ahead while their neighbours stall, yet “the reality is that it’s rare for one suburb to star while its neighbours underperform”.

The new list of 17 areas spans every mainland state and shows how local conditions shape price cycles. Regional centres such as Albury–Wodonga, Burnie and Mount Gambier make the cut, each buoyed by affordability, new investment and lifestyle appeal. Ryder highlights Albury–Wodonga’s unusual structure as a cross-border city with strong logistics and Inland Rail connections, describing its economic base as both strong and diverse.

Several larger hubs return to prominence. Brisbane’s inner suburbs are flagged for Olympic-driven momentum and a lift in riverside precincts. Ryder notes that cities preparing for the Games often see an uplift in the years before the event, particularly in suburbs close to key venues. Inner Melbourne continues to draw interest, with renewed apartment demand supported by affordability and access to major hospitals and universities.

INNER MELBOURNE IS BACK IN FOCUS, LIFTED BY RISING POPULATION GROWTH, MAJOR INFRASTRUCTURE SPENDING AND RENEWED APARTMENT DEMAND IN CARLTON, KENSINGTON, NORTH MELBOURNE AND THE CBD. AS TERRY RYDER NOTES, “THE GENERAL UPTURN IN THE VICTORIA MARKET” HAS MADE GREATER MELBOURNE GOOD VALUE COMPARED WITH OTHER CAPITALS

Western Sydney again features through Blacktown, which Ryder says defies long-held myths about distance and disadvantage. He points to long-term growth above 10 per cent a year and the strength of the wider Western Sydney economy. “Blacktown has good infrastructure—including motorway and rail connections, a hospital, a university campus and massive employment nodes nearby,” he writes.

Queensland dominates the list, with Logan, Rockhampton, the Sunshine Coast, Toowoomba and Townsville all identified as areas where diverse economies and large infrastructure pipelines are shaping price expectations. Townsville, which recorded 25 to 30 per cent annual growth in some suburbs between 2023 and 2025, is tipped to climb even higher on future rankings. Toowoomba benefits from its airport, Inland Rail and plans for a billion-dollar hospital, a combination Ryder describes as a recipe for rising values.

Darwin appears after signs of a sustained revival, helped by the nation’s highest per-capita infrastructure spend and improving economic signals. Ryder notes that late in 2024, sales activity strengthened and yields remained the highest of any capital city. Within six months, he says, it had become “the hottest market in Australia”.

Affordable lifestyle cities also stand out. Bunbury’s growth since 2022, Burnie’s emerging renewal zone and Geelong’s re-energised market point to regions where buyers continue to seek alternatives to major capitals. Frankston’s recent run, boosted by hospital investment, adds another Victorian entry.

Ryder includes the northern suburbs of Adelaide through Salisbury and Playford, citing extraordinary growth since 2020. He notes that buyers who purchased in places like Para Hills have seen median prices jump from $340,000 to more than $700,000 in five years.

Wollongong rounds out the list, described as a modernised regional centre with a strong economic base, an evolving port and continuing appeal for Sydney workers seeking relative affordability.

The selection of these 17 areas paints a picture of a property market shaped by infrastructure, job creation and local economic depth rather than national sentiment. Ryder’s long-running argument is that understanding these patterns offers a clearer guide to where momentum forms. His list suggests that buyers in 2026 may continue to look beyond Australia’s largest capitals for value, growth and lifestyle advantages.


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