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5 January, 2025 / Category: Blog
The number of buyers in the market for holiday homes declined significantly in 2024. Increased land tax and high interest rates were the primary drivers of this market slowdown. However, properties are still changing hands on the Mornington Peninsula—just in a different way than usual.
Significant land tax changes have forced many long-held, generational properties onto the market for the first time in decades as families find themselves unable to afford the rising costs of ownership. Another notable market shift is the change in buyer preference. Traditionally, Portsea and Sorrento were considered the most desirable locations; however, areas such as Mount Martha, Shoreham, and Red Hill are now emerging as preferred alternatives.
Many of our clients are choosing to sell their holiday homes in Portsea or Sorrento and purchase in these quieter areas. Buyers are drawn to these locations because they offer a more peaceful lifestyle—particularly during the summer peak—and provide better value for money, either through securing larger land parcels or freeing up cash for other investments.
While we continue to see Melburnians relocating to the Mornington Peninsula for a sea change, this trend has slowed compared to the immediate post-COVID period.
Flinders, on the Mornington Peninsula, is currently presenting attractive buying opportunities. Median house values have dropped by $989,000 (28.9%) from their November 2021 peak, bringing the median price to $2.43 million. In the past 12 months alone, values have fallen an additional 11.4%, or $314,206, making it a compelling market for buyers seeking value in one of Melbourne’s most scenic coastal regions.
As we move into the Peninsula’s peak selling period, the volume of online listings is abundant. Additionally, we are seeing several off-market and pre-market opportunities across the area.
The key to buying well on the Mornington Peninsula in the current market is having a deep understanding of property values. This knowledge will help ensure you don’t overpay and enable you to negotiate with confidence—securing the right property at a fair price and on favourable terms.
Book a complimentary 15-minute discovery call to see if we can help you secure your dream holiday or sea change home.
As property advocates and property managers we love what we do. Searching, negotiating and securing the perfect property for our clients, sooner and on better terms.
