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The ‘hot suburb’ trap: Why investors may be backing the wrong winners in 2026

17 APR 2026 By Noemie Veñegas 2 min read Investor Strategy
Everyone is rushing into the same “hot” suburbs for 2026 – but what if that’s exactly where investors are going astray, while the real winners are being overlooked and capital flows to the wrong places?

On The Smart Property Investment Show, host Liam Garman speaks with Dawn Fouhy of Future Proof Property Advisory about where the smartest money is really moving right now.

Fouhy reveals why “Goldilocks suburbs” – not flashy hotspots – are delivering the strongest long-term gains, unpacking opportunities from sub-$600,000 buys in Melbourne’s west to fast-growing corridors like Mernda and Doreen, plus overlooked markets like Canberra.

 
 

She also flags lifestyle suburbs such as Frankston South as breakout contenders at the $1 million mark, driven by infrastructure, migration, and owner-occupier demand.

The episode also warns that relying on outdated data or chasing cheap entry points can backfire, with Fouhy stressing that the real edge lies in tight supply, strong owner-occupier demand, and suburbs positioned for growth rather than hype.

If you like this episode, show your support by rating us or leaving a review on Apple Podcasts and by following Smart Property Investment on social media: Facebook, X and LinkedIn. If you would like to get in touch with our team, email [email protected] for more insights, or hear your voice on the show by recording a question below.

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