Mt Martha is among Victoria’s hotspots for house price growth, as the demand for coastal homes on the Mornington Peninsula continues to rise.

The median house price in the sought-after coastal suburb climbed 34 per cent to $1.87 million in the past 12 months, according to the March quarterly report from the Real Estate Institute of Victoria.

Mt Martha is one of three suburbs on the peninsula that dominate the state-wide data, with Rye leading the way with the median house price growing 48 per cent to $1.195 million. And, in Rosebud, it jumped 32 per cent to $851,121.

The data reflects the theme of ongoing migration by city folk to the regions, according to an REIV spokesperson.

“We see more Melburnians seeking out a scenery change in coastal towns and regional cities,” he said.

Barry Plant Mornington director Danae Eden attributes the phenomenal price increases on the peninsula to the rising interest from city buyers.

“Many Melburnians are wanting to get out of the city for a relaxing sea change,” she said.

“And now with the ability to work remotely either part-time or full-time, more people have the chance to live and work in this beautiful part of Victoria.”

And, the coastal suburbs have plenty to offer, with stunning beaches, golf courses, wineries, gourmet restaurants and boutique retailers at the doorstep.

The development of a toll-free 27km freeway connecting the peninsula with Melbourne suburbs is also a drawcard, Ms Eden said.

“The Peninsula Link has made a great difference to the area, offering a quick and easy commute to the city,” she said.

In Mt Martha, all types of properties are in demand, particularly low-maintenance homes where people can spend their time enjoying the delights of the area.

A three-bedroom hidden gem, without body corporate fees, at 2A Mondana Way, attracted multiple buyers and sold for $760,000, to a buyer wanting an easy lifestyle.

And a buyer from Pakenham looking for low-maintenance living snapped up a three-bedroom home at 19 Meadow Crest Circuit, near the beach and village shops for $805,000.

Up the coast in Mornington, properties have been snapped up by a mix of local and city buyers, particularly from the northeastern suburbs, according to Ms Eden.

“The market is hot here and homes are selling really quickly,” she said.

It took only a week to sell a renovated three-bedroom house at 34 Tintagel Way, which attracted 21 groups at the open house inspection and sold for $1.35 million.

A three-bedroom house with a pool at 45 Waldella Road, attracted 15 buyers and lasted only six days on the market before it was snapped up for $995,000.

And a renovated four-bedroom house at 4 Mulsanne Way sold less than two weeks after listing for $1.086 million.

An easy amble to Fisherman’s Beach, a single-level three-bedroom house at 17 Wellington Street, is up for auction on May 7 with $1.45-$1.55 million price hopes.

“Multiple groups have attended the opens, and we are getting strong interest from downsizers,” Ms Eden said.

“Three buyers have already registered to bid at the auction.”

Further down the coast in Dromana, a three-bedroom house near the beach at 31 Shaw Street, sold to buyers from Donvale for $1.1 million, well above the owner’s expectations.

“This property with subdivision potential attracted 30 buyers with four making competitive offers,” Ms Eden said.

“And it sold after 10 days after listing, and the buyer plans to knock down the house and redevelop the property.”