Mornington Peninsula bucking city property market downturn

The Victorian coastal hotspots bucking the property downturn

‘Ms Parkes and Ms Shergold are selling the Rye Opera House in Rye, a suburb which has become one of the most popular to buy a beachside home in Victoria. Like Ms Parkes and Ms Shergold did more than a decade ago, city dwellers have been flocking to coastal towns. Holiday home buyers, workers who split their time between the city and the coast, and young families moving to these areas have been bolstering sales along the coastlines, although the level of inquiries recently has been a little lower as buyers take time to get finance.

On the Mornington Peninsula, south-east of Melbourne, and the Great Ocean Road near Geelong dwelling prices have been more resilient than in the city. Some 351 homes were sold in Rye between December 2017 and November last year, according to Domain Group data, while prices rose by a median 7.1 per cent last year compared to 2017. “Suburbs and cities within a reasonable commuting distance of the CBD have been more resilient than areas of Melbourne as they’re relatively more affordable,” Domain economist Trent Wiltshire said.

On the Mornington Peninsula, sales have likewise remained strong. The only exception has been in Portsea, which saw a fall of 4.9 per cent between 2017 and 2018. Despite this, selling agent and director of Kay & Burton Portsea Gerald Delany said sales had remained strong over the busy summer period, especially in Rye.

“Sales have been strong, equal to last year,” selling agent and director of Kay & Burton Portsea Gerald Delany said, adding buyers were looking for Mornington Peninsula homes that could range from the $1 million price point to about $6 million or even higher. “We’ve got one – a clifftop property – around the $10 million mark,” he said.

Many buyers were moving to areas like Sorrento and Portsea wanting to spend part of their week working from home and the rest in an office in Melbourne. “They’re looking for one-level homes that are already done, they don’t want to buy an old clanger and do it up,” Terry Sparks from TJ Sparks Real Estate said.’