It’s a region that has skyrocketed in house prices and popularity in recent years as buyers chase a more relaxed lifestyle.
Characterised by its clear blue water and sandy beach strips, the Peninsula brings together a mix of people including families, young people, expatriates and retirees. It’s surrounded by Port Phillip Bay, Western Port and the Bass Strait, and is made up of localities including Sorrento, Portsea, Rye, Blairgowrie, Red Hill, Hastings, Mt Eliza and Flinders.
In summer, tourists, holiday-home owners and day trippers flock to the area, which has a typically up-market demographic - making the Peninsula an ideal place to own an investment. But a large number of people also live here permanently, with about 308,000 residents, according to the 2021 Census.
Stylish boutiques, high-quality eateries, brunch spots and retail stores dot the main streets of many of the suburbs, while sporting clubs, swimming and Surf Life Saving clubs are found in many thriving local communities.
Access and amenity
One of the biggest draw cards of the Mornington Peninsula is its proximity to amenities and access to the Melbourne CBD.
Take a short drive to one of the area’s many wineries, such as Montalto or Red Hill Estate, and eat (and drink) ‘til your heart's desire. Or visit the tranquil surrounds of the Peninsula Hot Springs for the ultimate relaxation experience. If you’re after something a little more adventurous, explore the Mornington Peninsula National Park or trek out to the Cape Schanck Lighthouse.
If you need to commute to the city for work or are in need of some retail therapy, jump on the Princes Highway, Peninsula Link or EastLink, and arrive in a little over an hour. Or hop on the ferry to Queenscliff and explore the Bellarine Peninsula .
There’s plenty of schooling options across the Mornington Peninsula in both the private and public sectors. They include Toorak College, Balcombe Grammar School, Padua College, Mornington Primary School, Woodleigh School, Peninsula Grammar, Mount Eliza Secondary College and popular primary schools. Monash University’s Peninsula Campus is also nearby in Frankston.
The Covid-19 pandemic also saw incredible property price growth for the Peninsula’s suburbs, with many reporting exponential growth.
As of October 2022 realestate.com.au reported the following data on some of the Mornington Peninsula’s most popular suburbs:
- Median rental price of $550 per week for a house (an increase of 14.6 per cent in the last 12 months)
- Median rental price of $445 per week for a unit or apartment (an increase of 14.5 per cent in the last 12 months)
- Annual rental yield of 2.5 per cent for houses and 2.7 per cent for units
- A compound growth rate of 25.3 per cent for houses and 19.2 per cent for units (based on 5 years of sales)
- Median rental price of $874 per week for a house (an increase of 20.6 per cent in the last 12 months)
- Median rental price of $699 per week for a unit or apartment (an increase of 27.2 per cent in the last 12 months)
- Annual rental yield of 2.1 per cent for both houses and units
- A compound growth rate of 28.8 per cent for houses (based on 5 years of sales)
- Median rental price of $680 per week for a house (an increase of 27.1 per cent in the last 12 months)
- Annual rental yield of 2 per cent for houses
- A compound growth rate of 17.9 per cent for houses (based on 5 years of sales)
The region is ripe for investment, according to Barry Plant Mornington director Chris Berryman.
“The capital growth is undeniable based on the fact there is no more land to be redeveloped,” he said.
“The peninsula is surrounded by already developed land, the strip along the coastline is essentially farmland and it’s not likely to be rezoned.”
Mr Berryman said the rental demand was very high and vacancy rates remained “incredibly” low.
“Investors will have renters lining up before the property has even settled … there’s no shortage of people chasing rental properties,” he said.