Victorian beachside property markets where home prices have surged
Demand for beachside lifestyles has swelled during the pandemic, with prices rocketing as a result.
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Property prices swelled by as much as 39 per cent in Victoria’s booming beachside ‘burbs over the past year, as the pandemic drove a sea-change surge.
And real estate pundits expect the sea to keep calling buyers in 2021, with flexible work arrangements and a desire to live in low-density, high-lifestyle locations set to become COVID-19 legacies.
Mornington Peninsula suburbs dominate a realestate.com.au list of Melbourne’s top 10 seaside markets for annual house price growth, taking up nine spots with St Andrews Beach leading the way.
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The coastal village — which is home to a renowned golf course, a popular fishing and surfing beach, and funnyman Andy Lee — has notched 26.1 per cent gains to a $1,172,500 median.
Kay & Burton Portsea director Liz Jensen said it was about time “heavenly” St Andrews Beach gained steam after “flying under the radar” for some time.
“It’s our (version of Western Australia’s) Margaret River — you’ve got the ocean, the coastal environment, and it’s so close to the wine district,” she said.
Ms Jensen said three parties notably “competed with passion” for NBN Co chairman Ziggy Switkowski’s waterfront beach house at 17-19 Moana Court, which sold in December for an undisclosed figure in the vicinity of the $4m asking price.
Portsea, Cape Schanck, Balnarring, Rye, Mornington and Mount Martha also recorded double-digit house price growth, with Portsea’s 19.9 per cent rise tipping its median above $2m, according to realestate.com.au.
Port Melbourne was the only non-Peninsula entrant in Melbourne’s top 10, with its median house price soaring 9.5 per cent to $1.457m.
Mentone and Bonbeach were the city’s best-performing seaside unit markets, rising 13.6 per cent to $642,550 and 12.6 per cent to $600,000 respectively.
Regional Victoria’s strongest growth spots for houses were the suburb of Geelong (up 32.9 per cent to $883,500), Gippsland’s Paradise Beach (31.8 per cent, $255,000) and East Geelong (27.7 per cent, $760,000), while Port Fairy topped the unit sector with mammoth 38.9 gains to $597,500.
Realestate.com.au executive manager of economic research Cameron Kusher said coastal living had become more sought — especially on capital city fringes and in commutable regions — as COVID-19 prompted city dwellers to “re-evaluate their lifestyle”.
“Being at home more, working from home three or four days a week, means people can look at areas they may have (previously) thought were too far out,” he said.
The increased demand from families who had cashed in on homes in expensive inner suburbs was pushing up prices on the coast, Mr Kusher added.
Ms Jensen said after just “10 quiet days during that initial shock of lockdown”, Melbourne-based buyers had flooded the Mornington Peninsula, and continued to do so early in 2021.
“On the 11th day, there were phone calls. People couldn’t wait to get out, people who had never wanted a holiday house down here but suddenly realised they needed one after being locked in their houses,” she said.
“For our little world, (the pandemic) has been a recognition of how beautiful it is down here.”
Bellarine Property director Levi Turner reported a similar scenario on the other side of Port Phillip Bay, with spots like Barwon Heads, Connewarre and Ocean Grove luring buyers from Melbourne as well as Ballarat, Bendigo and Geelong.
That included permanent and holiday home buyers, and investors spurred by the fact “interest rates are so low and rental returns are so strong”.
Mr Turner said his office notched record sales volumes in September, October and November, and sold “an unheard of” seven properties above $2m in Barwon Heads in a matter of months.
“And it’s started like it left off this year,” he said.
Realestate.com.au also found demand for houses — based on average views per listing — had shot up almost 68 per cent annually in Sorrento, 54 per cent in St Kilda and more than 35 per cent in Rye, Blairgowrie and Brighton.
The figure had also soared more than 100 per cent in affordable regional towns Toora, Surf Beach, Corinella and Golden Beach.
For Scott Hansen, listening to “the sound of the ocean” from bed, strolling down to Bridgewater Bay where “amazing rockpools” await, and perusing the shopping village stand out as the lifestyle perks on offer in Blairgowrie.
“It’s a second-to-none coastal lifestyle,” he said.
The award-winning builder behind Hansen Living — which has been creating homes across Melbourne’s southeast for two decades — bought a 1970s fibro beach shack in the Mornington Peninsula suburb five years ago.
He went on to “painstakingly” transform the 34 Ridley Street property into a modern four-bedroom house, which is now set to be auctioned on January 24 via RT Edgar Portsea’s Clayton Smith with a $1.9-$2.05m price guide.
The popular property has already attracted more than 9200 views on realestate.com.au about a week after hitting the market — almost six times the average visits for a Victorian listing.
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STRONGEST SEASIDE MARKETS
BIGGEST PRICE GROWTH
Melbourne – house
1. St Andrews Beach: median up 26.1% annually to $1,172,500
2. Portsea: 19.9%, $2,337,500
3. Cape Schanck: 18.8%, $1.2m
4. Balnarring: 13.2%, $985,000
5. Rye: 11.7%, $765,000
6. Mornington: 11.1%, $900,000
7. Mount Martha: 10.2%, $1.08m
8. Port Melbourne: 9.5%, $1.457m
9. Mount Eliza: 8.3%, $1.275m
10. Blairgowrie: 8.2%, $990,000
Melbourne – unit*
1. Mentone: median up 13.6% annually to $642,550
2. Bonbeach: 12.6%, $600,000
3. St Kilda: 6.5%, $565,000
4. Altona: 5.6%, $655,000
5. Brighton: 3.5%, $1.025m
6. Mount Martha: 3.1%, $673,750
Regional – house
1. Geelong: median up 32.9% annually to $883,500
2. Paradise Beach: 31.8%, $255,000
3. East Geelong: 27.7%, $760,000
4. Connewarre: 26.2%, $1.615m
5. Corinella: 24.2%, $475,000
6. Barwon Heads: 19.5%, $1,162,500
7. Cape Paterson: 19%, $625,000
8. Golden Beach: 16.3%, $267,500
9. Dalyston: 14.6%, $420,000
10. Ventnor: 14.2%, $619,500
Regional – unit
1. Port Fairy: median up 38.9% annually to $597,500
2. Geelong: 20.4%, $626,000
3. Lakes Entrance: 19.5%, $201,999.50
4. Newcomb: 17.3%, $415,000
5. Barwon Heads: 14.5%, $950,000
6. Apollo Bay: 14.3%, $548,750
7. Inverloch: 12.3%, $455,000
8. Warrnambool: 9.2%, $299,000
9. Torquay: 6.6%, $650,000
10. Portarlington: 4.8%, $507,500
BIGGEST DEMAND GROWTH
Melbourne – house
1. Sorrento: average views per listing up 67.8% annually
2. St Kilda: 53.8%
3. Rye: 39.9%
4. Blairgowrie: 39.3%
5. Brighton: 35%
6. Mentone: 34.5%
7. Mount Eliza: 33.2%
8. Mornington: 32.3%
9. Cape Schanck: 27.9%
10. Mount Martha: 25.3%
Melbourne – unit
1. Mount Eliza: average views per listing up 46.5% annually
2. Bonbeach: 37%
3. St Kilda: 34.6%
4. Dromana: 32.2%
5. Altona: 26.1%
6. Mount Martha: 25.1%
7. Mornington: 16.9%
8. Brighton: 15.2%
9. Port Melbourne: 8.6%
10. Mentone: 8.2%
Regional – house
1. Toora: average views per listing up 185.9% annually
2. Surf Beach: 138.5%
3. Corinella: 123.7%
4. Golden Beach: 114%
5. San Remo: 89.2%
6. Sunderland Bay: 86.2%
7. St Leonards: 84.7%
8. Aireys Inlet: 83%
9. Apollo Bay: 81.7%
10. Venus Bay: 72.6%
Regional – unit
1. St Leonards: average views per listing up 105.3% annually
2. Lakes Entrance: 84.4%
3. Barwon Heads: 73.2%
4. Geelong: 72%
5. Newcomb: 66.4%
6. Lorne: 65.1%
7. Torquay: 62.4%
8. Portarlington: 62.1%
9. Apollo Bay: 58.6%
10. Ocean Grove: 55.6%
Source: realestate.com.au, suburbs had to have more than 10 sales and 10 listings in two consecutive years from December 2018 to be included
*Note: only six seaside Melbourne unit markets experienced annual growth
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