The Mornington Peninsula has long been a sought-after destination for those looking to invest in lifestyle properties, and its popularity soared during the Covid period. But with higher interest rates, land tax changes, uncertainty in the Victorian economy, and geopolitical tensions, many clients are asking: Is now the right time to buy or sell on the Mornington Peninsula?
We believe that timing is everything in the property market, but it’s not just about when you buy or sell—it’s about having the right strategy. Let’s break down the current market conditions on the Mornington Peninsula and what they mean for you, whether you’re looking to sell up into a more passive investment or buy a holiday-style home.
Buyer Demand has softened.
Why are prices softening? It’s a simple supply and demand equation. Property listings have increased dramatically by 14.4% in the past 12 months. This has lead to a much longer time to sell a home. Therefore, this presents more opportunities for buyers to take the time to find and buy their dream home. The increased number of listings has allowed buyers to become very selective with what they say yes to. They are now very picky and will only sign a contract when they feel confident in their purchase.
An example of the increase in supply is Rye. According to the REA group, as of 1st October 2023, there were 77 listings available for sale. Fast-forward to today, 18th October 2024, and the REA group is currently advertising 192 properties for sale. This is a 149% increase in the supply for buyers to choose from in Rye alone!
From March 2022 to October 2024, Mornington Peninsula’s median home values have decreased by 12.5%, according to the REA group.
Over the last few years, the Peninsula has experienced a significant surge in demand, particularly during the pandemic, as buyers sought space, lifestyle, and a more relaxed way of living. While that demand has softened recently, it’s important to note that the Mornington Peninsula remains a prime location for lifestyle buyers and investors.
However, with a more balanced market emerging, buyers have more room to negotiate and explore their options. For those looking to buy, this can be an excellent opportunity to secure a property at a more favourable price, particularly in areas that have seen slower growth recently.
At Industry Insider Property, we see opportunities to uncover off-market gems that provide tremendous value for our clients, especially in a market that rewards strategic timing.
Sellers Need to Be Strategic. It’s all about price.
This market requires a more refined approach for sellers. The days of properties flying off the shelf at inflated prices are behind us, and buyers are now more price-sensitive. Pricing your home right is crucial. Overpricing can result in extended time on the market as buyers become more discerning.
At Industry Insider Property, we recommend focusing on presentation, pricing strategy, and understanding buyer sentiment to maximize results. Staging your home, refreshing its curb appeal, and ensuring the marketing plan highlights its unique lifestyle appeal are critical. Parts of The Mornington Peninsula are still seen premium and with the right strategy, sellers can achieve solid outcomes.
Investing for the Long Term
For those thinking about long-term investments, the Peninsula remains an attractive option. The area’s unique appeal—proximity to the beach, wineries, and a laid-back lifestyle—ensures consistent demand from buyers seeking a lifestyle change or a holiday retreat. Over time, well-chosen properties in the right pockets of the Mornington Peninsula will likely continue to grow in value.
If you’re unsure whether to buy or sell, Industry Insider Property is here to provide expert guidance. We focus on in-depth market research, access to off-market opportunities, and a client-first approach to ensure your decisions are well-informed, no matter the market conditions.
At Industry Insider Property, we specialise in helping our clients navigate Melbourne’s complex property markets, including the Mornington Peninsula. With our expertise, we can help you secure the right property or maximise the value of your sale, ensuring your experience is seamless and stress-free.
Contact us today via phone at +613 8374 7652, email at admin@industryinsider.com.au, or text message at +613 402 346 810 to learn more about our services and how we can help you buy or sell.
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Industry Insider Property
Level 3, 489 Toorak Road, Toorak 3142
+613 8374 7652
+613 402 346 810
industryinsider.com.au
