The property market on the Mornington Peninsula is experiencing a revival, driven by increasing interest from first home buyers and investors. Following a challenging period marked by declining prices and heightened taxes on investment properties, the area is showing signs of recovery. In the twelve months leading up to November 2024, data from research firm Cotality indicates that the median house value rose by 6.3 percent to $1,009,000. This growth accelerated after the market began to rebound in July.
Despite the recent uptick, the market is still recovering from the lows of 2024. According to Eliza Owen, the head of Australian research at Cotality, “Values are still well below their record highs of March 2022.” Over the past five years, the overall increase in property values stands at 26 percent, but this figure positions the region only 76th out of 87 in terms of national growth. While home values in Australia grew by approximately 7.5 percent in the past year, the Mornington Peninsula’s performance has been modest in comparison.
Affordable Areas Drive Growth
The data reveals that the most significant price increases are occurring in more affordable neighborhoods. For instance, Frankston North saw an impressive growth of 51.5 percent over the past five years, with median values reaching $723,000. Nearby, Langwarrin experienced a 37.5 percent increase to $940,000, while Sandhurst grew by 36.4 percent to $1,106,000.
Resident Geraldine Hanton recently sold her home in Mount Eliza after just 13 days on the market. She and her husband, Peter Hanton, decided to list their property due to signs of increased market activity. “We wanted to downsize… but we were just waiting for the signs that the market had looked like it was starting to be on the positive side,” she explained. The quick sale reaffirmed their belief in the positive trajectory of the market.
Real estate professionals note a shift in buyer demographics, with affordable areas gaining traction among those relocating from metropolitan Melbourne and other states. Vicki Sayers, director of Sayers & Co, highlighted that the southern part of the peninsula is facing an oversupply of properties, particularly among luxury listings. “In the Mount Martha and Mount Eliza price points, people are finding there’s still a lot of value for money to be had,” she remarked.
Market Trends and Future Outlook
The recovery in the Mornington Peninsula market is also linked to changes in interest rates. Brad Boyd, director of Abode Real Estate, noted that recent cuts to the Reserve Bank cash rate have helped stabilize property prices. “It’s presenting value, so buyers are coming back into the market,” he stated. The first home buyer segment, particularly in the $900,000 to $1 million range, is seeing a surge of interest from young families.
Despite the resurgence in activity, the luxury market, particularly properties valued at over $3 million, has struggled to regain its footing, primarily due to the decline in demand for holiday homes. However, trends indicate a potential shift, with renewed interest in higher-end properties beginning to emerge.
As the Mornington Peninsula property market continues to evolve, its recovery appears to be anchored in a blend of affordable housing options and renewed buyer confidence. With increasing listings and shorter selling times, the outlook for the region remains cautiously optimistic.
