Mornington Peninsula Becomes the New Luxury Property Hotspot in Melbourne

Mornington Peninsula Becomes the New Luxury Property Hotspot in Melbourne Manish Khanna
Manish Khanna
Friday 23 Apr 2021

Coastal living is the ultimate aspiration of every luxury home buyer. The tropical paradise of the Morning Peninsula brings this dream to life with its spectacular beach houses and opulent dwellings. Mesmerising locals and travellers with its fresh sea breeze, delicious cuisine, enchanting wineries, inviting cafes and galleries, thePeninsula is the hottest coastal holiday destination.

Entertaining people with a plethora of sun-kissed and sheltered beaches and adventurous water activities, the scenic locale offers a stunning destination to house hunters. Thus, if you are looking for luxury real estate in Australia, the Mornington Peninsula serves as the best settlement option or holiday home investment. The beautiful region has been making waves in the top-end segment of the country because of its proximity to the sea and the return of buyers to the Melbourne Market.

Mornington Peninsula Leads Property Price Surge

The affluent property buyers are hunting for lifestyle-living post the pandemic. Remote working and social distancing have become the new normal in states like Victoria that were the worst hit by the contagion. Naturally, the high-net-worth individuals are looking for homes that offer ample breathtaking views and are in proximity of restaurants, beaches, cafes, schools, supermarkets, etc.

The property prices in the Peninsula have been gaining momentum since May last year and have continued to surge. Whether it is the mid-segment real estate or the grade-A properties, every segment has been experiencing a growing demand in the region. The post-COVID-19 period has made several city dwellers take refuge in the outskirts, which are less populated and congested. It gives them the opportunity to stay away from the hustle-bustle and still within an hour’s drive from the city. This is the reason why Melbourne’s other blue-chip suburbs are also on a rebound after prices plummeted during the first half of 2020.

Recovery of Prices in Melbourne

The property market in Victoria has been racing ahead, with prices going up across house types and segments. The recent jump has been the highest monthly leap in the last 17 years. The boom started in October last year and has been continuing, with Mornington Peninsula taking the lead. The region has experienced a rise of 9.3% in house prices, which is almost unbelievable for real estate agents who were expecting a slower recovery. The vacancy rates have dropped drastically in the vicinity as the suburbs of the Peninsula are also showing a similar price rise.

The holiday hotspot has been growing at a fast pace, with high demand coming from all quarters of homebuyers. The coastline has been developing from as far as Portsea to Rosebud. It is filled with events like camping and carnivals that make the area all the more happening for families and young professionals. Every spot in the Peninsula is helping in the boom. Lavish homes in the suburbs have ventured into the million-dollar price bracket, and the recent influx of various cultures has made it diverse and inviting for interstate buyers.

Desirable Destination For Families

The COVID-19 pandemic has been a devastating experience for many Australians. From losing their loved ones to dwindling businesses and growing unemployment, the unrest caused by the virus was depressing and demoralising. The lockdown and restrictions further added to the woes as people could not step out for recreation and interaction. However, the worst is over now, and we have managed to flatten the curve with the efforts of the government.

The recent upswing in demand is a result of the growing desire of the pent-up buyers from Melbourne who want to relocate to a lifestyle destination. The city dwellers are eyeing upscale properties that offer space, creature comforts, exotic location, and a happening social scene. The unprecedented demand met with limited supply in the Peninsula, and this led to a steep rise in property prices. Buyers are coming back to the market after a hiatus and want to have the feel of a holiday even when they are at home.

Recent Million-Dollar Transactions

The growing interestof the ultra-rich in the Peninsula has buoyed the growth in the luxury property segment. The affluent suburb of Portsea witnessed a massive transaction of $12 million for a clifftop house after the buyers sold their Sorrento abode for $25.5 million. Another home offering a striking view of the crystal-clear waters has been listed for $30 million and will mark the biggest deal in the region upon its sale.

The wealthy buyers do not want to wait anymore for holiday/retirement homes because of the unprecedented conditions that emerged during the pandemic. They are ready to move in with family and enjoy the perks of living in a beautiful location away from the noise of the city. Also, international travel seems like a distant dream at present and having a beach right in front of the house eliminates the desire to travel to an exotic location. The secluded spots are being preferred because of their safety aspect. The unspoiled beaches offer a pristine view to the surrounding homes and a haven of their own. 

Seaside Living for Families

The beachside suburbs on the Mornington Peninsula are fetching the maximum returns for sellers as buyers make a beeline for waterfront properties. Since the closure of international borders and travel restrictions have been put in place, most of the families have been stuck at home. With remote working becoming a part of daily life, they are looking for abodes that offer premium living in a seaside paradise. The roaring pressure has made the year-on-year demand in the state go up by 71.8%since the supply is on the lower side.

The record-low interest rates have pushed Melbournians to look towards the beach destinations for working from home. It allows them to enjoy a working holiday and have the best of both worlds. It gives them peace of mind that their family is safe in a less crowded area. The enquiries for properties that are being listed are touching the roof and many buyers are eager to pay more than the asking price to grab the best homes in the vicinity. The tranquillity and relaxation offered by beachfront properties remain unmatched, and that is what is driving the prices.

Conclusion

The rising interest of buyers in a holiday destination that is close to the city has led to growing demand for luxury property in Mornington Peninsula. Thus, if you are looking for luxury property for sale in Australia, you must check out the high-end beachfront homes in the Peninsula that are being lapped up by wealthy buyers.