19 July, 2022 / Category: Blog
Mornington Peninsula has it all, from world-class beaches and wineries to national parks, cafes and good schools, all a comfortable commute from Melbourne. It’s no wonder it continues to be a highly sought-after destination for holidaymakers, sea-changers and investors alike.
With record-breaking growth in the area throughout Covid, buyers now need to be better educated, prepared, and in the know to buy well in the area.
Steph Bell, one of Infolio’s Mornington Peninsula specialists, says, “While some people are looking for high-end properties in Sorrento, Portsea and Red Hill, others are looking for more affordable beach side or country getaways. The Mornington Peninsula is a big place, and you need to know the area intimately to be confident that you are buying well. Sometimes the cheapest isn’t the most affordable.”
After two years of record demand for the area, we are settling back into the usual seasonal patterns, with most stock transacting during Spring and Summer. However, savvy buyers must be prepared early to make sure they can buy in before the market heats up. Auction clearance rates are regularly above 80% (even out of peak season), some of the highest in the country. While not many properties are listed online, there are several available off-market in the area. Local agents are regularly asked to do appraisals in preparation for sales in the coming months.
In this area, especially in today’s environment, there is undoubtedly a case of first-mover advantage for those buyers who can get into the market before it starts to increase this Spring. Bell recommends beginning your search six months before you want to move in. “Properties move quickly in this area, and you’ll need to be ready to buy when you find the one you love.”
“Initially, you should cast your net wide and get to know a few different areas. Once your finances are settled, we can guide you on the best areas to maximise your budget and suit your requirements. We can also do the heavy lifting and check out all the potential properties fitting your brief, ensuring you only make the journey down for inspections when it is a property that truly fits your checklist.”
Median house values vary wildly in the Mornington Peninsula, and no two places offer the same experience. So how can you decide which one is right for you? We’ve collated some of our favourite spots, some well-known and some less known.
If you’re looking for a seachange or holiday house under $1.5 million, there are still many options on the Peninsula, especially if you know the best streets to buy in.
Rye: Rye still offers good value with a median house price of $1.2 million and options for bigger blocks (compared to some of its neighbouring suburbs further up the Peninsula).
Capel Sound: Nestled between Tootagrook and Rosebud, Capel Sound is lesser known, but what it lacks in reputation, it makes up for with good value and beach access. Despite strong capital growth over the last 12 months, the median house price is only $850,0000.
Tootgarook: Tootgarook is a small suburb within shouting distance of everything there is to love about the Mornington Peninsula. Quiet streets, large blocks of land, friendly locals and best of all, a median house price of $987,500
Sorrento: Home to the mansions on Millionaire’s Walk, spectacular views, schools and a plethora of retail and dining options, Sorrento has it all. With a median house price of $2.5 million, it isn’t for everyone’s budget. However, the area will likely continue to see good capital growth with solid property foundations and limited supply.
Red Hill & Red Hill South: Internationally renowned wineries, fresh country air, and good schools abound in Red Hill. It is the best of both worlds, where residents choose between private hideaways and an abundance of wineries, restaurants, and shops. It’s no surprise that Red Hill South saw some of the state’s highest capital growth during 2021.
Shoreham: Where a seaside surfing town meets country luxe, this unique mix makes Shoreham highly sought after. The area has a median house price of $3.1 million; however, its limited supply of approximately 450 predominantly rural properties means it is likely to be hotly contested if you find one for sale.
Even though some areas of Victoria’s Mornington Peninsula have experienced stellar price growth over the past year, investors still have plenty of opportunities.
Infolio’s Mornington Peninsula specialist and resident, Will Crowder, says “supply will always be limited in the area because the peninsula is landlocked, has tight development protocols, and many homes tend to stay in the same family for generations.”
In the last year, asking rents have risen by 11.3%, and vacancy rates remain extremely low. Some owners have earnt as much as $40,000 for the Christmas break from short-stay guests. Crowder says this means owners can, in some cases, have the best of both worlds “by renting out their property over the peak summer period and then having it to themselves for the rest of the year.”
Whether buying a lavish retreat or a modest 1960s beach house, any investment in the Mornington Peninsula would be wise.
To discuss your property aspirations for the Mornington Peninsula, contact Steph Bell or Will Crowder, our local area specialists, to find out what is currently available, on and off the market.