FairSquare Index · Winter 2026 The 10 Most Undervalued Suburbs in Australia
FairSquare's pricing model covers 627 Australian suburbs. As of June 2026, it rates 106 of them Hidden Gems — markets where the fundamentals are stronger than the price. This index ranks the ten with the strongest scores, plus the top picks in every state.
106
hidden gems identified
4.0%
top-10 avg gross yield
+12.8%
top-10 avg 12m growth
Each suburb below carries the model's Hidden Gem verdict: a score between 6.0 and 7.4, a positive market signal, and pricing the model reads as below the suburb's structural fundamentals. Click through for the full dossier on any suburb.
| # | Suburb | Score | Median | Yield | 12m Growth |
|---|
| 1 | Palmerston, ACT | 7.4 | $1.07M | 3.6% | +5.0% |
| 2 | Doubleview, WA | 7.4 | $1.03M | 4.2% | +20.0% |
| 3 | Wembley, WA | 7.4 | $984K | 4.1% | +20.5% |
| 4 | Howrah, TAS | 7.3 | $712K | 4.7% | +4.0% |
| 5 | Cannington, WA | 7.3 | $775K | 4.7% | +22.0% |
| 6 | Mount Saint Thomas, NSW | 7.2 | $942K | 4.1% | +6.0% |
| 7 | Wynnum, QLD | 7.2 | $961K | 3.8% | +12.5% |
| 8 | Cremorne, VIC | 7.2 | $1.38M | 3.4% | +7.5% |
| 9 | Strathmore Heights, VIC | 7.2 | $1.09M | 3.4% | +8.5% |
| 10 | Belmont, WA | 7.2 | $864K | 4.2% | +21.5% |
Figures from the FairSquare suburb index, June 2026. Medians are model-derived (weekly rent × 52 ÷ gross yield) and calibrated against verified house medians monthly. Not financial advice.
Western Australia claims 4 of the national top 10. The signature is consistent: double-digit 12-month growth and gross yields above 4% — a combination that normally cannot coexist for long. Either rents fall or prices keep rising; the model reads the second as far more likely while supply stays constrained. East-coast capital priced out of Sydney and Melbourne keeps arriving.
Australian Capital Territory
Ratings Actions — What Moved This Quarter Because the model is deterministic — same inputs, same verdict — a verdict change is signal, not noise. Between 21 April and 6 June 2026, 73 of 627 suburbs changed verdict: 38 upgrades and 35 downgrades. South Australia booked 8 of the upgrades — the quarter's quiet winner.
Notable upgrades
Blacktown, NSW — Workhorse Investment → Hidden Gem
Engadine, NSW — Neutral Hold → Workhorse Investment
Narrabeen, NSW — Neutral Hold → Workhorse Investment
St Marys, NSW — Neutral Hold → Workhorse Investment
Caboolture, QLD — Proceed with Caution → Workhorse Investment
Notable downgrades
Paddington, NSW — Steady Buy → Workhorse Investment
Beenleigh, QLD — Workhorse Investment → Proceed with Caution
Camp Hill, QLD — Steady Buy → Workhorse Investment
Chermside, QLD — Hidden Gem → Neutral Hold
Taringa, QLD — Steady Buy → Workhorse Investment
FairSquare scores every covered suburb from 0 to 10 across growth, yield, demand, risk and affordability, then combines the score with a live market signal to issue one of eight verdicts. Median prices are never AI-guessed — they are derived from a calibrated rent-and-yield surface, anchored to verified house medians and checked monthly. The model's current mean pricing error against verified data is under 5%. Full methodology: fairsquare.com.au/methodology.
Cite as "FairSquare Winter 2026 Index". Analytical estimates for research purposes only; not financial advice.
What makes a suburb "undervalued" on this index?
FairSquare's model issues a Hidden Gem verdict when a suburb scores 6.0–7.4 out of 10 with a positive market signal, in a market that has not yet priced its fundamentals. Of the 627 suburbs the model covers, 106 currently qualify. This index ranks them by score.
How are these suburbs scored?
Every suburb receives a 0–10 score built from growth, yield, demand, risk and affordability, combined with a live market signal. Median prices are derived from a calibrated rent-and-yield model, never estimated by AI. Full methodology at fairsquare.com.au/methodology.
How current is this data?
All figures are from the FairSquare suburb index generated in June 2026. Model calibration anchors are checked against live market data monthly, and every verdict is dated.
Why is Western Australia so heavily represented?
Perth combines double-digit 12-month price growth with gross yields above 4% — a combination the model reads as fundamentals running ahead of market recognition. Several inner-Perth suburbs still price below comparable east-coast markets.
Want all 106 Hidden Gems?
This article covers the top 10. The full ranked shortlist — every Hidden Gem with verdict, score, median, yield and growth — is A$20. Or get the model's complete 11-page verdict on any single suburb.