John McGrath Says Markets Near Bottom, Names 40 Growth Suburbs

Major metropolitan property markets have dropped 10 to 15 percent over the past six months, with some falling as much as 20 percent, according to McGrath Estate Agents founder and CEO John McGrath. Speaking on market trends for the year ahead, McGrath reported that despite data companies recording single-digit declines, conditions on the street reflect a much sharper contraction.

Property Values Nearing the Floor After Rapid Correction

“This is my eighth market correction since I entered the industry more than 40 years ago, and it feels like the fastest fall in values I can remember,” McGrath said. Data companies continue to track smaller movements, but the on-the-ground reality points to steeper adjustments across big metropolitan markets. Even with the sharp downward momentum, historical patterns indicate that big cities are close to the bottom of the cycle.

Forty Growth Suburbs Identified Across Four States

To help manage the recovery phase, the McGrath Report 2027 identifies 40 suburbs across New South Wales, Victoria, Queensland, and Tasmania expected to experience growth over the year ahead. The selected markets combine metropolitan and regional locations.

In New South Wales, metropolitan Campsie is highlighted as a potential successor to Marrickville. On the regional front, Narooma on the south coast features a median house price of $990,000, bolstered by the opening of Justin Hemmes’ Merivale Group motel, The Whale. Victoria brings attention to Sunshine, alongside regional Mildura. Mildura’s local population is projected to reach over 66,000 residents by 2046, up from 56,792 in 2021, with employment forecast to climb 26.5 percent between 2026 and 2046.

Queensland inclusions feature Beenleigh, positioned between Brisbane and the Gold Coast, and Maryborough on the Fraser Coast. Tasmania rounds out the list with Chigwell, located 15 minutes north of Hobart with a rental yield of 5.3 percent, and Mayfield in Launceston, where median house prices sit below $530,000 alongside a 5.6 percent rental yield.

Diverse Local Economy Drives Housing Demand in Mildura

Long-term municipal projections indicate sustained housing demand across regional hubs like Mildura, driven by a diverse local economy spanning agriculture, healthcare, construction, and manufacturing.