Mornington Peninsula: Must-know tips for summer buyers and why homes in the area could be a 2025 steal
Plunging prices and limited competition are making the Mornington Peninsula a buyer’s dream. Find out the suburbs offering luxury and affordability before the market heats up.
The Mornington Peninsula is back on buyers’ radar while the market slumbers during summer, with plunging prices, limited competition, and a lifestyle that is “impossible to resist”.
Experts say the time to buy is now, as empty nesters, investors, and sea-change dreamers scramble to snap up bargains before the market heats up again in the new year.
Jellis Craig Rye’s Adam Vocale said he is optimistic about 2025, citing stabilising economic conditions and the possibility of interest rate reductions.
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“Competition in the market is relatively limited,” Mr Vocale said.
“However, as we see more buyers attending open homes and with relief in sight, many will be prompted to consider their options more seriously.”
Mr Vocale said he was seeing a growing trend of empty nesters opting for the Mornington Peninsula as their primary residence while maintaining a smaller city pad in a bid to dodge higher land tax charges.
“This move not only caters to family visits during the summer months but also helps future-proof their lifestyle,” he said.
“A similar home in Melbourne could cost twice as much – the lifestyle is impossible to resist.
“Down here, you’re closer to the water, can enjoy a brand-new build, and embrace a more relaxed way of life.”
Fletchers Mornington Peninsula’s Nick Callander echoed the sentiment and said the value now available in traditionally sought-after areas.
“In Sorrento, median prices have softened from $2.2m to between $1.6m and $1.9m, opening up some incredible buying opportunities,” Nick Callander said.
“Buyers have plenty of choice, which is unusual for the area.”
Callander said the post-Covid lifestyle shift was evident with many buyers prioritising work-life balance and a slower pace.
“For city dwellers, the Mornington Peninsula offers a quieter, community-focused environment compared to Melbourne’s urban hustle,” Mr Callander said.
PropTrack economist Angus Moore said while summer typically sees a lull in market activity, prices in the Mornington Peninsula have dipped by about 4 per cent over the past year — making it softer than other Melbourne regions.
However, this presents an attractive window for buyers, particularly as the Peninsula continues to benefit from its coastal allure and pandemic-driven lifestyle appeal.
PropTrack data reveals a mix of affordability and luxury across key areas over the past 12 months, with Mornington showing median house prices at $1.12m and units at $730,000, with rental yields of 3.5 per cent and 4.0 per cent, respectively.
In Sorrento, median house prices have dropped to $1.91m, with annual rental yields of 2.1 per cent.
Rye offers a more affordable entry point with median house prices at $1.05m and rental yields of 3.0 per cent, while Portsea stands out at the premium end with median house prices at $3.68m but showing a surprising 25.7 per cent annual growth rate.
For buyers seeking affordability, Rosebud and Dromana offer house prices under $1m and strong rental yields between 3.7 per cent and 4.1 per cent.
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Originally published as Mornington Peninsula: Must-know tips for summer buyers and why homes in the area could be a 2025 steal
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