Sydney suburbs to watch in 2026

According to Cotality, Sydney house prices increased just 2.9% over the twelve months to September - that’s within the RBA’s acceptable inflation range! The evidence of the past few years would suggest such middling growth is unlikely to continue, and the expansion of the 5% deposit scheme as well as the prospect of more RBA rate cuts means demand looks only set to increase. If you’re thinking about buying in Sydney, now might be a good time. We consulted a couple of Australia’s top buyers' agents to discover where the best value for money might lie in Australia’s biggest and flashiest property market.

Note: All price, rent and growth data from the following suburbs are sourced from REA

Parramatta (2150) and Westmead (2145)

Parramatta

Westmead

Investors and homebuyers alike are increasingly turning to the traditionally more working class Western suburbs of Sydney to find value. Among the most prominent is Parramatta and investor and founder of Palise Property Steve Palise says there’s plenty of reasons to be bullish about what’s generally considered Sydney’s second CBD.

"Parramatta is positioned as a central hub between the Sydney CBD and the new Western Sydney Airport, attracting corporate tenants and boosting residential demand," he told Savings.com.au.

"The Metro West Tunnel and the second stage of the Parramatta Light Rail will also bring a long-term uplift in connectivity."

Mr Palise also highlighted Westmead, the next suburb heading westward from ‘Parra’, for its growth potential.

"The whole area is a health and education super-precinct anchored by Westmead Hospital and Western Sydney University," he explained.

Steve Palise, Founder and Director of Palise Property

Winston Hills (2153)

Winston Hills is another Western suburb to consider. The median house price of $1.64 million is cheaper than Parramatta and Westmead, and Mr Palise said it could be a particularly strong option for families.

"Winston Hills is an established family suburb with strong schools and suburban amenities," he said.

"There’s $572 million worth of council investment in roads, community facilities, and open spaces including the Max Ruddock Reserve coming in 2026."

Like Parramatta, Winston Hills could also be a major beneficiary when the Western Sydney international airport opens late next year.

"The airport will bring better connectivity, jobs growth and flow-on housing demand across the west," Mr Palise said.

Bankstown (2200)

Another major infrastructure upgrade underway in Sydney is the Southwest Metro conversion, which is supposed to finally open next year - after plenty of delays so far locals are likely taking that estimate with a grain of salt. When it is up and running though, it could end up significantly boosting property values, with Bankstown one of the primary beneficiaries.

"Bankstown is the flagship of the Southwest Metro Conversion," Steve Palise said.

"The Metro will provide fast, frequent services to the CBD from Bankstown with about 20 minutes worth of travel time."

Per the NSW Government’s Transport Oriented Development Program, land within 400m of the Bankstown station has been rezoned to allow higher density housing, which Mr Palise says could also be positive.

"Expect a sharp uplift in site values and development activity from 2026 onward," he said.

Canterbury (2193)

It might surprise NRL fans who don’t live in Sydney that Canterbury and Bankstown aren’t next door - the former is significantly closer to the CBD. That of course means property is more expensive, but Director of Unicorn Buyer’s Agents Dan Sofo says there are still bargains to be found in the other namesake of the Bulldogs.

"Canterbury is 20% cheaper than neighbouring Marrickville and Dulwich Hill, and has the metro opening next year," Mr Sofo told Savings.com.au.

Dan Sofo, Director of Unicorn Buyer’s Agents

Hoxton Park and Horningsea Park (both 2171)

Hoxton Park

Horningsea Park

While the suburbs listed so far offer value compared to inner-city Sydney, for many buyers (particularly first home buyers) houses in the likes of Parramatta and Canterbury may still be out of reach. For those on a smaller budget looking to get into the Sydney market, Mr Sofo says the south-west could be worth considering. Hoxton Park and Horningsea Park are about 40 kms from the Sydney CBD, but with house prices almost 50% lower than the Sydney median.

"In Hoxton and Horningsea Park you can still buy a solid house on a 500-600 sqm block for $1.3-$1.4 million," Mr Sofo said.

"Small cookie cutter houses in neighbouring Leppington on 300 sqm blocks are selling for nearly the same price."

These suburbs are also both well under the $1.5 million cap in Sydney for the 5% deposit scheme.

Kogarah (2217) and Brighton-Le-Sands (2216)

Kogarah

Brighton-Le-Sands

Waterfront property in Sydney isn’t exactly a hot tip, but some buyers may be surprised to find there are still some suburbs on the Ocean, particularly in Bayside, that are below $3 million. Mr Sofo says Kogarah and Brighton-Le-Sands in particular are 'very undervalued'.

"Kogarah and Brighton-Le-Sands are great value for money considering the close proximity to the beach, and the new M6 connector opening soon," he explained.

After nearly 20% growth over the twelve months to September, Brighton-Le-Sands now has a median house price of $2.3 million, which probably doesn’t sound like a bargain. When you consider the likes of Sandringham though, which is further from the CBD and has a median house price of $3 million, the growth potential starts to look more promising. Kogarah is the 'budget' option of the two, currently with a median house price under $1.6 million.

Beach at Brighton-Le-Sands