Price storm calms in Portsea after ‘must-have money’ finds a home

The post-pandemic switch to hybrid working is still fuelling prices in retreats such as Portsea but ‘cracks are appearing’ in demand.

An off-cliff mansion, above, at 18 Macgregor Ave in Portsea recently sold for $9.6m, via Peninsula ­Sotheby’s International Realty, well ahead of the $7.3m for which it last changed hands in January last year.

As summer comes to a close, the appeal of Mornington Peninsula is switching from long beachside walks to log fires and cheeky reds from the area’s many vineyards.

After a frenzied 2021, the real estate is still in action with some big sales recorded in the classic holiday destination of Portsea that show strong price growth.

For many, the allure of a holiday home on the famed peninsula, south of Melbourne, has changed dramatically, with people making use of the post-pandemic switch to hybrid working to base themselves, at least part-time, in what would once have been holiday homes.

Veteran Sotheby’s International Realty managing director Rob Curtain has seen this trend play out and believes it will be a big factor in the market this year.

“Our strongest market for the last five or six years has always been baby-boomers. They’re going to continue to retire and spend more time down here,” he says.

“They’re switching from what’s been their Melbourne base; they’re coming down here with change and buying the same, if not bigger property.”

But Curtain says the pandemic has also changed office culture and allowed people to spend more time outside of work. “I think a lot of senior management have realised they’re just as productive and efficient working from home,” he adds.

“They’re making use of the home-office environment, and we’ve really seen that with purchases of premium houses where that executive office becomes very much part of the day to day.”

This five-bedroom home at 75 Campbells Rd, which was billed as Portsea’s ultimate beach house, sold in the $9m range after changing hands just over year earlier for about $6.65m.

At the same time, he’s seeing more opportunity for people to buy into tightly held precincts in Portsea, Flinders and Red Hill, despite the still tight stock levels.

He says buyer appetite has been slowing since January.

“The ‘fear of missing out’ that was talked about last year is non-existent as much of the must-have money has found a home and for a long extended period of time it’s been a seller’s market,” he says.

“However, things can quickly change, especially leading into an election and, although low inventory levels are reducing the impact of a pullback in prices, things ­appear to be rapidly changing.”

He cautions that it is still very early to predict the market moving into the winter months, but says “there certainly are cracks ­appearing with many listings remaining unsold after an extended period of time on the market”.

In Melbourne, he cites large price cuts, with a home in the city enclave of Toorak that was advertised at $22m-$24m now reduced with a change of agent to $17m-$18m.

But he is optimistic that quality properties priced correctly in sought-after locations like the Mornington Peninsula will always sell. This has been on display with top homes.

An off-cliff mansion at 18 Macgregor Ave in Portsea recently sold for $9.6m, via Peninsula ­Sotheby’s International Realty, well ahead of the $7.3m for which it last changed hands in January last year.

The coastal luxury home, known as Bell, is well back from the street and is set among magnificent Moonah trees on about 3000sq m of land only minutes’ walk to Shelley Beach.

The four-bedroom, four-bathroom property has picturesque garden views, and its expansive outdoor entertaining areas provide a tranquil sense of space. A new pool house and pavilion are modelled on the top luxury resorts that are now hard to visit.

Just last month, another five-bedroom home at 75 Campbells Rd, which was billed as Portsea’s ultimate beach house, sold in the $9m range after changing hands just over year earlier for about $6.65m.

Inside 75 Campbells Road, Portsea.

The mansion, also near Shelley Beach, offers a private luxury lifestyle behind its manicured hedging. The modern home spans open-plan living, formal entertaining, a separate study and parents retreat, and has top finishes.

Pool and deck at 75 Campbells Road.

It is set around a signature oval in-ground pool and also sports a full-size mod grass tennis court.

“However, it’s now all hands on deck as 2021 looks to be the high watermark in prices for a while,” Curtain says.

But beware bargain hunters: the overseas buyers are back, with the agency already fielding inquiries from the US for its premium stock.