If you have been wondering where to invest in property in Australia in 2026, you are not alone. According to Momentum Wealth’s 2026 Property Sentiment Report, Australian investors are shifting how they think about location, and the data is telling an interesting story.
Melbourne is emerging as the top choice for property investors in Australia
More than one in five investors currently identify Melbourne as one of the most attractive cities to invest in right now, driven largely by its affordability relative to other capital cities.
While Perth, Brisbane and Adelaide have dominated headlines over recent years, Melbourne is quietly becoming the city serious long-term investors are paying attention to. KPMG has forecast Melbourne house prices to rise 6.6% in 2026, naming it the best-performing capital city in the country. And with a median house price still materially lower than Sydney, the entry point remains comparatively accessible.
But the 2026 forecast is not the reason to invest in Melbourne. It is the long-term fundamentals that matter, such as population growth, infrastructure investment, migration pressure and affordability relative to Sydney. Property investment works best over a seven to ten year horizon or longer. Melbourne’s story is not a 2026 story. It is a decade-long story.
A record number of investors are open to buying interstate
A record 73% of investors say they are open to buying in a state they do not live in. That is a significant shift. It suggests more Australians than ever are making property investment decisions based on data rather than familiarity.
For a long time, many investors stuck to suburbs they knew personally, which are areas they had lived in or driven through. From what we see, that is changing. Investors are becoming more comfortable following the numbers, even when that means looking at a city or suburb they have never visited.
That shift in thinking is an important one. Emotional familiarity and sound investment logic do not always point to the same place.
Why 40% of investors are drawn to house and land in 2026
According to the report, 40% of investors are drawn to house and land projects specifically, largely for the potential depreciation benefits they offer over the life of the investment.
A new build allows investors to claim depreciation on the structure and fixtures of the property, which can reduce taxable income year on year. For families who are focused on tax efficiency as part of their long-term investment strategy, this is a meaningful consideration.
It is worth noting that depreciation benefits vary depending on individual circumstances. Speaking with an independent financial planner or accountant is the right step for anyone wanting to understand how this applies to their own situation.
What this means for families thinking about where to invest in property in Australia
The data from the 2026 Property Sentiment Report points to a broader trend: Australian investors are becoming more informed, more flexible, and more focused on fundamentals than ever before.
If you have been thinking about where to invest in property in Australia and want to understand how Melbourne fits into a long-term property investment strategy for your family, that is exactly the kind of conversation we have every day at Austral Financial.
We help everyday Australian families cut through the noise and understand the market clearly, so they can make informed decisions based on their own circumstances.
Send us a message, or call us, if you would like to talk it through.
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