The Mornington Peninsula is in high demand. Just an hour from Melbourne’s CBD, the region is growing as a residential hot spot and an investment property goldmine.
Is investing in the Mornington Peninsula the way to unlock long-term growth? The coveted area isn’t cheap but is a prime real estate opportunity for potential investors.
Following the pandemic, the area has grown in desirability for holiday rentals and long-term residencies, with Australians looking to make a sea change or holiday closer to home.
If you’re considering a Mornington Peninsula property investment, it’s important to weigh up your options and ensure you’re making an informed decision.
The best way to do this is through the expert guidance of a Buyer’s Advocate in Mornington Peninsula. But if you’re keen to learn more about investing in the Mornington area, this article will take you through the pros and cons, insights, and recommendations.
Ready to take the next step? Contact our expert buyer’s advocate today.
The Appeal of Mornington Peninsula: Why The Peninsula Is An Investment Hot Spot
The Mornington Peninsula has become an increasingly popular location for sea-changers and holidaymakers. It’s become a highly sought-after location for property buyers thanks to its:
- Extended coastline and variety of beaches
- Array of wineries
- Growing restaurant scene
Since the pandemic, Victoria has experienced a shift in working culture with a rise in remote jobs. With this available, many people have decided to relocate to coastal and regional areas.
Mornington Peninsula is only a short one-hour drive (on average) from Melbourne’s CBD, making it even more desirable for those looking for a change of scenery not too far from home or a weekend getaway.
The pandemic forced Victorians (and Australians) to look for holidays closer to home, increasing the popularity of the peninsula area. The Mornington Peninsula has become a staple for weekend trips and extended summer holidays. In 2023, the area saw 8 million tourists visit its region, a 6% increase from 2022.
With this continued growth, the area becomes increasingly competitive for property investment.
Mornington Peninsula Market Overview: Current Property Prices & Growth Trends
In March 2019 the median price for a Mornington Peninsula house was around $675,000. Since then, property prices have soared. Our Raveche team has seen the rapid growth throughout the Peninsula and the increase in interest from our clients.
Let’s look at the current state of Mornington’s property market. As of 2024, house prices in popular areas like Mornington, Rye, and Sorrento emulate the high demand and fluctuation in the area.
Price Trends in Mornington Peninsula
As discussed earlier, the post-pandemic shift towards coastal and regional living has led to The top-tier location of Sorrento currently averaging a house price of $1.8 million but with a reported 11% drop in its quarterly price change.
Rye could be considered more affordable, with a current median of $990,000. The area has also seen a drop in its quarterly price change, indicating now could be a good time to invest. See below a snapshot of popular suburbs.
| Suburb | Median House Price | Quarterly Price Change |
| Sorrento | $1.8 million | -11% |
| Rye | $990k | -7.1% |
| Tootgarook | $783k | -30.9% |
| Dromana | $1 million | 4.3% |
| Rosebud | $765k | 2% |
While some areas have seen a continued growth, the recent data in popular areas like mentioned above, suggest a slowing pace. The drops across the Mornington Peninsula could indicate a market stabilisation after the rapid growth period in the early post-pandemic years.
Looking at rental yields, long-term rentals in these areas can offer moderate returns. Mornington sees an average rental yield of around 3.1%, and Rosebud has a 3.5% rental yield. Holiday rentals, especially during peak summer, generally provide higher returns due to the area’s popularity as a holiday destination.
Although the area has seen a cooling period in growth, its popularity as a holiday location may allow it to remain a stable investment opportunity for the foreseeable future — particularly for renting to tourists.
Pros and Cons of Investing in Mornington Peninsula
Investing in the Mornington Peninsula can give you unique advantages that are hard to find elsewhere in Victoria. However, the region still comes with drawbacks and risks. It’s important to weigh up both the pros and cons of the area when deciding if you want to invest.
PROS | CONS |
Attractive rental yields (particularly with peak holiday season). | Seasonal demand causes fluctuations in rental income. |
Capital growth potential in sought-after suburbs across the area. | Potential overvaluation in some areas due to rapid growth over the past five years. |
Coastal lifestyle with vibrant cafe, winery and restaurant scene. | Higher competition for prime locations. |
Ability for dual-use of the property (investment & personal use). | Lower chance of capital growth for unit or apartment properties. |
If you’re interested in investing in the Mornington Peninsula but are concerned about the risks, consider engaging a reputable Buyer’s Advocate. The right buyer’s advocate can help you mitigate these risks and find a property that can offer long-term returns and good rental yield while avoiding over-priced properties.
What to Look for When Investing in
Mornington Peninsula
When choosing the right property for your investment goals, focusing on several key factors to minimise both short-term rental income and long-term growth potential is essential.
Areas With High Investment Potential
Many suburbs in the area are appealing to investors. Sorrento and Portsea are high-end markets known for their luxury holiday homes. Mornington and Mount Martha attract a mix of residential buyers and tourists.
Rosebud and Tootgarook provide slightly more affordable alternatives with good rental yields. Properties within 5km of the coast tend to have higher demand for residents and tourists.
Ideal Property Types: Holiday Homes or Units
It’s clear that the Peninsula’s rental market favours holiday homes and beachside units due to its popularity with holidaymakers. Large homes or multi-bedroom units often perform well on platforms like Airbnb. However, the rental income is less stable due to popularity in summer, and lack of visitors in the off-season.
For investors looking for long-term growth, vacant land in developing suburbs like Hastings can offer potential for future development. Make sure you look into zoning and other considerations if going down this route — this is where a buyer’s advocate can help you.
The Importance of Due Diligence
It’s essential to investigate the area you want to invest in. Research aspects like council zoning and building regulations, as these can greatly affect property use and profitability. For example, certain areas may restrict short-term rentals or building heights.
Flood-prone and bushfire-risk areas are common along the coast, so it’s critical to check these. Consulting with local council authorities or hiring a buyer’s advocate who can investigate zoning and building restrictions can help you avoid a mistake that’ll cost you in the future.
Tips For Securing The Best Deal
The Peninsula’s market is highly competitive, especially for properties with established permits for Airbnb or near the beach. Working with the right buyer’s advocate can be invaluable, as they often have access to off-market listings, allowing you to secure your property before your competition can even inspect.
Properties that need minor renovations can offer a more affordable entry point but provide growth opportunities. Minor tweaks can help make a property more appealing to holiday renters, on saturated platforms like Airbnb, you want your property to stand out.
The Role of a Buyer’s Advocate in Mornington Peninsula Property Investments
Property investment is typically one of the biggest purchases we make. Therefore, having an expert as a trusted resource to guide you throughout the process can make all the difference. At Raveche Property, we’ve helped countless clients find homes and investment properties on the peninsula.
Let’s summarise the key responsibilities and advantages of using a buyer’s advocate for property investment on the Peninsula.
Local Insight For The Right Location
A buyer’s advocate acts as your insider in the area. Their expert knowledge of local market trends, property value, and relevant regulations means you can feel confident making your investment. Their expertise means they source properties that match your goals and are low-risk investment opportunities.
Access To Off-Market Properties
A rarity on the Mornington Peninsula is exclusive off-market properties. Without a well-connected professional, these can be practically impossible to find. A buyer’s advocate has an extensive real estate network that gives them access to properties that aren’t publicly listed. Their access can help you secure your ideal property before any competition begins.
Save Time and Money
A buyer’s advocate will source, inspect and bid on properties on your behalf. Their service removes the time and stress out of property searching for you. Good buyer’s advocates are also great negotiators and can help you get your dream property for the best price.
Aife (from Raveche Property) got me a great deal and has been in every step of the process, she made the phone calls, followed up, arranged inspections… everything! She made this daunting process a lot easier.
So Is Mornington Peninsula Property Investment
Worth It?
Is an investment property in Mornington Peninsula worth it? With the right buyer’s advocate on your side, yes. Ultimately it comes down to your goals as an investor, with most properties best suited for holiday rentals.
In these competitive markets, it’s important to act quickly and get ahead of the competition. Start by booking a free consultation with our expert buyer’s advocate to discuss your potential opportunities.
Frequently Asked Questions
What are the best suburbs in Mornington Peninsula for property investment?
If you’re looking to invest for good rental yield, the top suburbs to choose would be Sorrento, Portsea and Flinders. If you’re looking for long-term growth at a lower entry point, suburbs like Tootgarook and Sommerville are viable options.
How much does a buyer’s advocate cost?
A buyer’s advocate typically uses one of three pricing structures, a flat fee, a percentage fee or a tiered fixed fee. During your free initial consultation, you can discuss the pricing in detail to ensure the cost is within your budget before making a formal commitment.
Are there any risks in investing in holiday rentals?
The main risk of investing in holiday rentals is their seasonality.
The Peninsula’s famous beaches and summer activities mean in the warmer months the area is in high demand, but this rapidly decreases in the off-season.
Start Your Investment Journey on the Mornington Peninsula With Raveche Property!
Want to explore your investment options on the Mornington Peninsula? Contact our team today for your free initial consultation.
