As we move into 2026, several Melbourne pockets are shaping up for stronger-than-average activity, driven by a mix of affordability, lifestyle demand and improved infrastructure. While bidding remained selective throughout 2025, buyer confidence is accelerating —particularly in markets where value still exists and long-term fundamentals are strong.

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Certain pockets of Bayside continue to show solid resilience, with lifestyle suburbs such as Highett, Mentone and Cheltenham displaying renewed momentum. These areas offer a balance of beach proximity, strong school zones and excellent transport, making them highly attractive to upsizers and young families. Stock levels have remained tight, which is likely to support further price growth into 2026.In the Inner West, suburbs like Yarraville, Seddon and Footscray are positioned for another year of elevated demand. Continued gentrification, improved amenity and relative affordability compared with the Inner North and Inner South mean these suburbs will remain on the radar for first-home buyers and investors seeking value. The Metro Tunnel opening is also expected to improve travel efficiency, adding another layer of appeal to these already fast-moving markets.

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Finally, the middle-ring growth corridors—including pockets of Bentleigh East, Carnegie, Preston and Reservoir—are likely to attract strong buyer competition. These areas benefited from a surge of interest in 2025 as buyers sought larger homes or renovated properties without the premium of inner-suburban pricing. With demand spilling outward and a continued shortage of quality listings, these suburbs are set to perform well again in 2026.

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For buyers looking ahead, targeting suburbs with a mix of infrastructure upgrades, diverse housing options and sustained demand will be key. As always, buying well rather than simply buying in a “hot” suburb—remains the most reliable path to long-term performance. If you’re planning a move in 2026, we’re already mapping the suburbs where clients are likely to secure the strongest value and growth.

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