Where to Buy and Where Not to Buy in Victoria in 2026
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At the start of 2026, buyers are doing two things at once.
They are chasing value where growth still looks likely.
And they are trying to avoid the streets and suburbs that can quietly turn into financial sinkholes.
That is exactly why we published these three pieces in 2025:
The next 10 Melbourne suburbs set to boom 2025 to 2027
https://www.victorianpropertysettlements.com.au/news/2025/11/30/the-next-10-melbourne-suburbs-set-to-boom-20252027
10 Melbourne suburbs to avoid
https://www.victorianpropertysettlements.com.au/news/2025/8/1/10-melbourne-suburbs-to-avoid
Five Melbourne suburbs where property investment is not a gamble it is a loss
https://www.victorianpropertysettlements.com.au/news/2025/11/15/five-melbourne-suburbs-where-property-investment-is-not-a-gamble-it-is-a-loss
This new article is the 2026 companion piece. It is not another list.
It is the framework you use to decide whether a place is worth buying in, and whether the specific property you are looking at is a good idea or a trap.
Step 1: Separate suburb talk from property reality
A suburb can be improving while a particular property is a nightmare.
And a suburb can have a bad reputation while a particular street, pocket, or development is performing well.
So start with the suburb themes from the three articles above, then move straight to the two things that matter in Victoria:
What the Section 32 discloses.¹
What the contract locks you into.²
Step 2: Where to buy in 2026 (the signals that usually matter)
You are usually on safer ground when you can tick most of these boxes:
Demand that is not just investor demand
Owner occupiers competing usually supports steadier pricing through cycles.
Transport and access that works in real life
Not just a station on a map, but time to the station, parking, reliability, and the actual commute pattern.
Low risk planning surprises
If the planning controls and overlays are clear, and there is no obvious future road widening or activity centre shake up sitting in the background.³
Stock quality that buyers actually want
Good floorplans, good light, usable parking, sensible owners corporation rules. If the “cheap” option is cheap for a reason, the market is telling you something.
A clean disclosure story
No unanswered questions about building works, flooding, cladding, or owners corporation special levies.¹⁴⁵
Step 3: Where not to buy in 2026 (the signals that cost people money)
This is where the 2025 “avoid” and “loss” articles become useful, because the patterns repeat.
Here are the red flags we see most often:
Investors only, no owner occupiers
You can end up with higher vacancy risk and tougher resale conditions when the market mood changes.
Properties with “unknown building works” vibes
Fresh paint and new kitchens are not the issue. The issue is works done without permits, poor workmanship, owner builder risk, and missing documentation.⁶
Owners corporation risk that is hidden behind a low fee
Low fees can mean low maintenance, delayed repairs, and big future special levies.⁴⁵
Environmental and insurance headaches
Flood prone land, coastal exposure, drainage issues, or defect history can become an insurance problem, not just an inconvenience.
Contract conditions that shift risk onto the buyer
Unusual special conditions, harsh default clauses, short finance timeframes, or vendor friendly settlement risk.²
Step 4: Victoria wide reality check (not just Melbourne)
If you are buying outside Melbourne in 2026, the same framework applies, but you add two extra filters:
Serviceability and local employment base
A town can look cheap, but if demand is thin, resale can be slow when you need it most.
Disclosure quality varies
Some regions have a higher rate of informal building work. That means your building and pest process, permit checks, and disclosure review matter even more.¹⁶
Step 5: The five checks to do before you commit
If you do nothing else, do these five things before signing or bidding:
Get the Section 32 checked properly
Missing disclosures or unclear documents are where expensive surprises start.¹Match contract particulars to title and plan
Names, title details, lot and plan, and what you are actually buying must align.⁷If there is an owners corporation, read the certificate and minutes like a detective
Look for defects, disputes, projects, and talk of special levies.⁵Treat building works as a risk until proven otherwise
Ask what was done, when, by whom, and what permits and warranties exist.⁶Make sure the settlement plan is realistic
Avoid Friday settlements where you can, and make sure finance and certificates are lined up early.⁸
Auction vs private sale (this changes everything)
If you are buying at auction, the contract is effectively take it or leave it, and you need to be comfortable with every special condition before you bid.²
If you are buying by private sale, you often have room to amend special conditions and clarify risks before you sign.²
If you want a clear answer quickly
If you send us the address and the agent contract pack, we can tell you what stands out and what you need to do next.
Use our contract review request link here:
https://www.victorianpropertysettlements.com.au/contract-review-request
Victorian Property Settlements – Trusted for over 25 years by Victorian buyers and sellers. Visit: www.victorianpropertysettlements.com.au
Important note about the information in this article
This article is general information for property buyers and sellers and is not legal advice. Under Victorian law, only a solicitor may provide legal advice.
Footnotes
Sale of Land Act 1962 (Vic) (vendor statement and disclosure obligations).
Sale of Land Act 1962 (Vic) and the standard form of contract commonly used in Victoria (contract conditions and buyer obligations).
Planning and Environment Act 1987 (Vic) (planning schemes and overlays).
Land Tax Act 2005 (Vic) and State Revenue Office administration (land tax concepts and liability framework).
Owners Corporations Act 2006 (Vic) (owners corporation certificates, records, fees, and obligations).
Building Act 1993 (Vic) (building permits, compliance, and related building control concepts).
Transfer of Land Act 1958 (Vic) (title, registration, and interests in land).
General settlement process principles in Victoria including electronic conveyancing requirements and transaction sequencing (PEXA based settlement practice).