Chat with us, powered by LiveChat

Mornington Peninsula rental market defying all odds

Sea changers drive rental growth in beachside suburbs

The COVID-19 lockdown adversely hit the economy, job security and migration numbers.

But unlike metropolitan markets with rapidly declining asking rents and rising vacancy rates, the peninsula has held tight.

The rental market in Rosebud and surrounding areas hasn’t felt the blow of the pandemic like the inner-city, according to local Barry Plant rental department manager, Laura Keyte.

“As soon as we came out of lockdown, we had a surge of people wanting to relocate to the peninsula,” Ms Keyte said.

“The rental market in these areas wasn’t affected by COVID at all.”

As parts of Victoria, such as Docklands and Melbourne, felt the full impact of the blow with 20 per cent decreases in rental prices, the beachside suburbs experienced the opposite.

Blairgowrie had the highest annual increase in rents in the housing market for 2020, according to CoreLogic data.

The suburb notched a median weekly rental value rise of 10.8 per cent to $526 in the year to September 30.

Portsea placed top three in the state with a 10.6 per cent increase to $736. Sorrento recorded a 10.1 per cent jump to $609, while Rye bumped up 10 per cent to $486.

Ms Keyte said price points and lifestyle were the main drivers for keeping the region afloat during the pandemic.

“Rentals in Rosebud are very affordable; the average price for a three bedroom is $350 - $370 per week,” she said.

“People escaping the city and chasing that beachside lifestyle can spend their dollar well in the peninsula.”

In the unit market, rents rose the most in Capel Sound, up 9.9 per cent to $381. Mount Martha placed third with an 8.8 per cent increase to $510, followed by Rosebud with a 7.6 per cent bump to $472.

Ms Keyte said similarly to the sales market, they are also seeing a demand in rentals and limited stock available.

“We are finding a lot of our investors are selling their properties and making the most of the booming sales market,” she said.

“On the other hand, some landlords are having tenants vacate so they can use their investment properties as holiday houses while the travel bans are in place.”


Related stories:

Mornington Peninsula homes flying off the shelves

City buyers swoop on Mornington Peninsula

South East Melbourne market offers buyers “more bang for your buck”