Australia’s most recognized real estate entrepreneur, John McGrath, has released his 2026 McGrath Report, spotlighting a series of lesser-known Sydney suburbs he believes are poised for strong growth. From coastal escapes to inner-west heritage pockets, these areas promise a blend of lifestyle and affordability — an increasingly rare combination in the city’s real estate landscape.
Undervalued Suburbs Offer the Best of Sydney Without the Premium
Real estate veteran John McGrath, founder of McGrath Estate Agents, has identified several lesser-known Sydney suburbs he believes represent the smartest property opportunities over the next year. In the 2026 McGrath Report, he outlines how these “hidden pockets” offer character, proximity to amenities, and lifestyle appeal — all at prices well below their more famous neighbors.
In an analysis published by Realestate.com.au, McGrath emphasized that these overlooked areas are beginning to attract more attention as traditional hotspots become financially out of reach for many buyers. The suburbs listed include Ashbury, Haberfield, Tennyson Point, Newport Beach, Norah Head, and Sans Souci.
Ashbury and Haberfield: The Inner West’s Quiet Achievers
In the inner west, Ashbury is emerging as a compelling option for buyers priced out of Concord or Marrickville. Known for its period homes, community feel, and improving café culture, Ashbury retains the classic charm without the inner-city price tag.
“You can still bag a good buy if you’re quick,” Mr McGrath said. “Decent land, period homes and great emerging cafes — you’ll wonder how you missed it until now.”
Just next door, Haberfield also makes McGrath’s list. It’s noted for its Federation-era architecture, leafy streets, and strong heritage protections that help maintain its visual appeal. These features, combined with its proximity to the city, give it an edge in long-term value retention.
Tennyson Point: A Waterfront Haven Below the Radar
Tennyson Point, tucked beside the affluent enclave of Hunters Hill, remains largely unknown even to lifelong Sydneysiders. But that anonymity could prove advantageous for those looking to enter the waterfront market without paying multimillion-dollar premiums.
“This little waterfront piece of paradise is nestled quietly next to her uber wealthy neighbour Hunters Hill with little or no fanfare,” McGrath said. “(It’s) one of Sydney’s more charming waterfront enclaves.”
Properties here combine seclusion with accessibility, offering water views, green surroundings, and relative affordability — a rare combination on Sydney’s Lower North Shore.
Newport Beach: Northern Beaches Lifestyle Without the Northern Beaches Prices
Further north, Newport Beach is gaining attention for its dual appeal to both lifestyle buyers and investors. Located between surf beaches and Pittwater’s tranquil waters, the suburb offers a holiday atmosphere within a commutable distance from the city.
“(It’s) flanked by surf on one side and Pittwater on the other,” McGrath noted, adding that “cute two-bedders could be picked up there for about $800,000 and could double in price in a few years.”
This combination of natural amenities and potential for capital growth positions Newport Beach as a rare value proposition on the northern beaches.
Norah Head and Sans Souci: Coastal Vibes at Manageable Prices
Moving outside of Sydney’s traditional metropolitan belt, Norah Head on the Central Coast continues to offer some of the last accessible beachside properties within driving distance of the city.
“Do you swim, surf, fish, bird watch, whale watch? You can do them all from here and still secure your little beachside shack for around a million dollars,” McGrath said.
Meanwhile, Sans Souci, located in Sydney’s St George region, combines affordability with lifestyle. The suburb’s relative anonymity masks its wide beachfront, good transport links, and local amenities.
“There are a lot of things to like. It’s just really easy. You’re pretty close to everything,” a local buyer was quoted as saying in the same report.
Sans Souci’s accessible price point and lifestyle appeal are drawing in buyers from across the city, suggesting a likely surge in demand — and prices — over the coming years.
Buyers Begin to Shift Focus as Prices Rise Elsewhere
With high interest rates and tightened borrowing power shaping buyer behavior in 2025, the move towards previously underappreciated suburbs may continue well into 2026. Buyers are recalibrating, seeking value in places that were once overlooked or underestimated.
The suburbs highlighted by McGrath share a common thread: they offer lifestyle features, architectural appeal, and access to infrastructure — without the inflated prices seen in better-known postcodes.
Whether the trend holds will depend on broader economic conditions and policy settings, but McGrath’s list provides a clear signal: smart money in Sydney is moving off the beaten track.
