Mt Eliza and Mornington huge 15-20% property price growth 2018

‘Near perfect gains for Mornington Peninsula sellers – September 20 2018

‘MORNINGTON PENINSULA home sellers chalked up $264 million in profits in the June quarter to emerge among the top Melbourne council regions.

And at 99.5 per cent, nearly all the peninsula’s sellers made profits, with a median gain of $341,500, according to the latest CoreLogic Pain and Gain report.

In contrast, “with dwelling values continuing to fall throughout the city, the share of houses and units resold for a loss rose over the quarter” across Melbourne, the report noted.

The news was also good in neighbouring Frankston, where 100 per cent of June quarter sellers made a profit, totalling $158 million.

Local agents have noted the peninsula’s properties have been undervalued for a long time and were attracting cashed-up buyers from other suburbs and those seeking a sea or tree change.

Many peninsula houses have chalked up annual median price gains of 15-20 per cent, giving sellers large profits.

“There is plenty of doom and gloom in the Melbourne market, but not in the Mornington Peninsula,” Vicki Sayers of RT Edgar Mt Eliza said.

“The changed market elsewhere will actually make the peninsula’s properties more attractive to buyers and investors.”

She noted that while “some heat has come off the local market”, the limited supply of listings and still strong demand from local and outside buyers would reward sellers.

Impact Realty Group director James Merchan said losses from resales were often due to being forced to sell, for example, due to a marriage breakdown or an unexpected event.

“Anyone who sells will be in profit territory unless they overpaid or purchased recently and are forced to sell,” Mr Merchan said.

“I would be shocked if anyone who sold in the last 12 years would have made a loss.”

In Mt Eliza, two homes on the same street which were purchased in 2011 sold earlier this year with large price gains for the vendors, Mr Merchan said.

No. 129 Mountain View Rd fetched $1.28 million in March, after being purchased for $685,000, while No. 68 sold for $870,000 after being bought for just $512,000.

Another Mt Eliza house at 48 Humphries Rd gained $933,500 between sales when it fetched $1.595 million in May. It had undergone a renovation, which boosted the strong result.’

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