Australia's property landscape is set for a significant shift in 2026, with Queensland and Western Australia emerging as the standout states poised for major growth, according to leading market analysts. The surge is expected to be fuelled by billions of dollars in new infrastructure spending, creating new hotspots for savvy investors.
Infrastructure Billions to Fuel State Growth
Property expert Anna Porter, speaking to Sunrise on Wednesday, highlighted that the coming wave of public investment is the key driver. Queensland is positioned to reap substantial benefits from a combined $7.1 billion in state and federal funding linked to the upcoming 2032 Brisbane Olympic Games. This massive injection is anticipated to supercharge development and demand in key areas.
Meanwhile, Western Australia's momentum is being turbocharged by the massive $12 billion submarine deal, which is already contributing to economic activity. "WA has been surging and seeing a lot of growth in values throughout the back end of 2025, and we expect that to continue especially with the submarine deal coming online," Porter stated.
The Suburbs Set to Soar
For buyers looking to get ahead, experts advise a highly selective approach. In Queensland, the spotlight is on the Moreton Bay local government area, less than an hour north of Brisbane, and the city's broader Bayside region. A $2 billion hospital upgrade in Moreton Bay is a major project expected to drive significant job creation and subsequent housing demand.
In Western Australia, Bunbury, located about two hours south of Perth, is being tipped as a high-potential market. Described as a growing commercial hub by the water, it still offers relative value compared to the metropolitan centre.
"Following infrastructure projects is really critical," Porter emphasised. "Looking where hospitals, metro lines, and major developments are going in can help identify pockets in the country where things might be taking off in the future."
Other Regions on the Watchlist
Beyond the two leading states, several other regions are on experts' radars for potential growth in 2026. These include:
- Wollongong, the Central Coast, and Queanbeyan in New South Wales.
- Geelong in Victoria.
- Seaford and Port Noarlunga in South Australia.
Challenges for Builders and First-Home Buyers
Porter did issue a warning for the year ahead, noting that 2026 could be particularly tough for new construction projects. Ongoing pressures from construction cost increases, labour shortages, and council approval delays are expected to continue stretching budgets and timelines.
First-home buyers are also likely to feel continued pressure, despite a raft of new grants and support schemes rolled out in late 2025. "It's created a bit of pricing surge in that sector, which is actually already pushing some first-time buyers out," Porter explained.
For renters bracing for potential further rent hikes, Porter suggested getting creative in negotiations with landlords. Tactics could include offering to carry out maintenance work such as painting, fencing, or gardening to offset or delay planned increases.
