Mornington Peninsula seaside suburbs tops in Victoria for price growth
Rye and Rosebud homeowners reap eye-watering profits
Suburbs on the Mornington Peninsula are leading the state for house price growth, as demand surges in the popular tourist and lifestyle destination.
The coastal areas of Rosebud and Rye dominate the list, according to data from the Real Estate Institute of Victoria’s March quarterly report.
In the past 12 months, the median house price in Rye has grown 48 per cent to $1.195 million, while in Rosebud the price bloomed 32 per cent to $851,121.
Soaring demand for lifestyle homes on the coast is pushing up prices, according to an REIV spokesperson.
“We see more Melburnians seeking out a scenery change in coastal towns and regional cities,” he said.
Barry Plant Rosebud director Craig Leo believed that many have put their travel plans on hold, preferring to spend their holidays on the peninsula instead, with golf courses, wineries, gourmet restaurants and boutique retailers within easy reach.
“Travelling interstate or overseas remains on the back burner for many people,” he said.
“They are choosing to buy holiday homes for themselves or as investments because the demand for rentals is high, and buyers are wanting that coastal look and feel.”
An architect-designed Fasham Johnson beach home on 1040sq m at 27 Waratah Street, Rye, sold to a city dweller for $1.31 million, well above the owner’s expectations.
The property with a stunning outdoor entertainment area is a five-minute stroll to the beach reserve and close to shops and cafes.
Another buyer from Melbourne splashed $1.56 million on a five-bedroom house at 5 Sunrise Place, Rosebud, which sold for a whopping $260,000 above the owner’s reserve.
“They wanted the exclusive Peninsula Sands property for a holiday home,” Mr Leo said.
“It is the perfect entertainer with a pool and spa, and located just a short drive to the foreshore.”
Also near the pier and café precinct, a modest three-bedroom house on 391sq m at 39 Second Avenue, Rosebud, was snapped up by a city buyer for $845,000.
“They were looking for a holiday home investment to use as an Airbnb,” Mr Leo said.
“And paid a massive $125,000 above the owner’s reserve.”
The market has powered through the first four months of this year, with standout auction clearance rates in January, according to Mr Leo.
“At the end of January, we held 16 auctions and all the properties sold under the hammer,” he said.
On January 30, a basic three-bedroom house on a corner of 743sq m at 9 Murray-Anderson Road, Rosebud, sold to a developer for $1.385 million, well beyond the owner’s expectation.
“It is in a prime location just 300m from the beach, and an absolute moneymaker,” Mr Leo said.
“And the buyer plans to knock down the house and build two or three units on the site.”
The property, just minutes from the foreshore with a beautiful aspect out to Arthurs Seat, also has the rental potential of $450 a week.
Currently, auctions in the area are attracting an average of two to six competitive bidders, according to Mr Leo.
“Anything on the peninsula near the beach is selling like hotcakes, from modest cement sheet dwellings to big volume homes,” he said.