From Melbourne’s northern suburbs to beachside Williamstown, investors have revealed their top investor picks for Victoria in 2026.
Melbourne coastal enclaves, Geelong and Ballarat have been tipped as the premier Victorian investor hotspots for 2026.
Alongside beachside Elsternwick, Williamstown, Dromana and Mornington, property industry experts have highlighted areas such as Lalor, Reservoir, Brunswick West and Oakleigh – where median house prices range from $750,000 to $1.325m – as the cream of the investment crop for the next 12 months.
Following 2025’s modest residential price growth across much of Melbourne, agents in areas such as Williamstown and Reservoir are reporting unprecedented demand from interstate-based investors seeking a bargain has boosted home prices by tens of thousands of dollars.
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Real estate analysis and research website Hotspotting’s founder and managing director, Terry Ryder, said he expected investors would gravitate to the likes of Darwin, regional Tasmania, Melbourne, Ballarat and Geelong in 2026.
“Ballarat, for example, has had a couple years where prices have been flat and in some cases prices have fallen, so the value for money buying in Ballarat is particularly good at the moment,” Mr Ryder said.
According to PropTrack, Greater Melbourne’s median house price is $1.015m, regional Victoria $613,000, Geelong $836,250 and Ballarat $592,000.
Typical unit values, including apartments, are $626,000 in Greater Melbourne, $434,000 in regional Victoria, $620,000 in Geelong and $407,500 in Ballarat.
This three-bedroom Geelong house sold for $771,000 in August 2025. The area’s median house price is $836,250, PropTrack data shows.
Hotspotting director Terry Ryder says Darwin, regional Tasmania, Melbourne, Ballarat and Geelong will be investor hotspots in 2026.
Property Investment Professionals of Australia chair and buyers’ advocate Cate Bakos said Melbourne and much of Victoria had been in recovery for a number of months after a downturn in recent years, though had only shown limited growth so far.
But with other parts of the country having risen substantially in the past few years, the state and city were starting to look like they had a prospect of a broad lift in 2026.
“There’s been a lot of recent demand from investors for Victoria and it’s a value proposition,” Ms Bakos said.
Property Investment Professionals of Australia chair and buyers’ advocate Cate Bakos nominated Lalor, in Melbourne’s north, as one of her investor hotspots for the year.
Experts say that it’s important for investors to do their research before picking a property to purchase.
“But you do need to be picky. A lot of people are looking for a lower priced house in some of the areas for lower socio-economic demographics — and they will have challenges.”
Noting that following the crowd in these areas could be “a danger”, Ms Bakos said not all sub-$700,000 homes on Melbourne’s fringe were good investments.
She advised sticking to well-located, classic apartments and villa units instead — especially those with good owners corporations and strata teams in place.
Ms Bakos’ investor hotspot nominations for 2026 include Elsternwick, Oakleigh, Lilydale, Lalor, Williamstown, Brunswick West, Mt Waverley, Ballarat East and Greater Geelong’s Herne Hill and Grovedale.
This Williamstown house fetched $1.46m in November 2025. The suburb in Melbourne’s west has a median $1.55m house value.
Advantage Property Consulting director and buyers’ advocate Frank Valentic said although he expected broad growth across Melbourne this year, certain areas and abode types would be star performers with houses clear winners over units and apartments.
Skyrocketing building costs since Covid will mean renovated houses remain popular along with older and period-style homes which have timeless appeal.
“And townhouses or units/apartments with land content will be stronger performers than high-rise apartments with just airspace and no land,” Mr Valentic added.
Mr Valentic’s top 2026 investment picks are Elwood, Reservoir, Dromana, Mornington and Daylesford.
A Herne Hill house which changed hands for $750,000 in May 2025. Herne Hill is a suburb of Geelong, with a median $755,000 house price.
Ray White Preston director Ian Dempsey said an influx of interstate investors competing with local buyers was pushing some Reservoir prices up by tens of thousands of dollars.
In the suburb, houses asking $800,000 to $1.2m are especially sought-after by investors.
“I think that’s really good value compared to other states as Reservoir is only 13-14kms from the CBD,” Mr Dempsey said.
“You compare that to Sydney, you’re paying an extra million bucks for sure.”
Featuring four bedrooms, this Elwood house sold for $2.3m in May 2025. The bayside suburb is 8km southeast of Melbourne’s CBD.
Real Estate Institute of Victoria vice president and Compton Green Inner West director Adrian Butera said apart from Williamstown’s beach and other amenities, the recently-opened West Gate Tunnel toll road and access from local train stations to the new Melbourne Metro Tunnel would attract even more investors.
“I think what will follow will be property investment as people realise that convenience, then they’ll identify real estate at the end of the line, so to speak,” Mr Butera said.
Williamstown and Williamstown Beach stations are their rail line’s final stops.
Additional reporting by Nathan Mawby and Courtney Snowden
2026 VIC INVESTOR HOTSPOTS: EXPERT’S PICKS
Property Investment Professionals of Australia chair and buyers’ advocate Cate Bakos:
Property Investment Professionals of Australia chair and buyers’ advocate Cate Bakos is based in Melbourne.
Ballarat East
Median house price: $505,000
Soldiers Hill has been the popular darling of Ballarat, but Ballarat East is home to some of the oldest architecture. Owners are taking advantage of Ballarat’s equity gains and some of the renovations and developments are impressive. Situated on the Melbourne side of town, and with Ballarat station only a short drive or bus ride away, Ballarat East offers a lot for the budget.
Lalor
Median house price: $750,000
Lalor and Thomastown have experienced incredible growth this past year, but there is more in store for this pocket. Located conveniently near the Western Ring Rd, and offering train station amenity along High St, Lalor is one of the last options in an established area where a three-bedroom, brick-veneer property on 500sq m within 18km of Melbourne’s CBD is still available for $800,000 or less.
This three-bedroom Ballarat East house fetched $576,000 when it sold in September 2025.
Herne Hill
Median house price: $755,000
Still a sleepy suburb compared to bustling Geelong West, Herne Hill has some beautiful character homes on offer. My favourite attribute, aside from the pretty houses on offer, is the rail trail walk, an old disused rail that’s now a tranquil track between parklands.
Oakleigh
Median house price: $1.325m
In the leafy south eastern suburbs, it represents fantastic value especially with the new Oakleigh train station, Eaton Mall, dining and plenty of period and character houses for families and couples.
Williamstown
Median house price: $1.55m
Williamstown has always been known as the jewel in Melbourne’s west, but the affordability relative to eastern beachside suburbs is astounding. Now that the West Gate Tunnel work and freeway enhancement is behind us, the travel times for inner westies have been shortened too.
Advantage Property Consulting director and buyers’ advocate Frank Valentic:
Advantage Property Consulting director and buyers’ advocate Frank Valentic has bought several properties on television show The Block, on behalf of clients.
Daylesford
Median house price: $810,000
The Block factor has marketed Daylesford to a new Australian and worldwide audience who didn’t know of the town before it appeared on the reality show’s 2025 season. The area has had solid growth and has averaged 10 per cent annual growth over the last five years to be a strong performer compared to many Melbourne areas.
Reservoir
Median house price: $911,000
It’s a popular suburb with families and first-home buyers, only 13km north of Melbourne’s CBD. The ripple effect pushes many buyers out from Preston, which is 9km from the CBD and has a typical $1.126m house value.
In October 2025, this Daylesford house changed hands for $785,000.
Dromana
Median house price: $920,000
This Mornington Peninsula suburb is far more affordable than neighbouring areas such as Portsea. It attracts both permanent and holiday home residents and many properties have water views because of the hilly landscape.
Mornington
Median house price: $1.05m
Located 70km south east of Melbourne, Mornington attracts professionals, retirees and young families.
In August 2025, this two-bedroom Reservoir home scored a $880,000 sale.
Elwood
Median house price: $2.245m
Elwood will continue to be popular with families, professionals and downsizers. Elwood has only been averaging 3.2 per cent growth annually across the past five years and there is much better buying there now compared to the Covid period when its typical house value was more than $3m.
Source: Median house prices from PropTrack
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