Prestige property values in Sorrento and Portsea have experienced a moderate correction in early 2026, with median house prices recording drops of up to -3.2% (Barry Plant Dromana, early 2026) alongside broader Peninsula adjustments. However, demand remains resilient, driven by a dual buyer pool of permanent residents and Melbourne-based weekender/holiday home buyers. While the peak-COVID premiums have unwound, limited listings continue to underpin values, particularly for well-positioned properties.
The Sorrento and Portsea markets, traditionally benchmarks for prestige coastal property in Victoria, are navigating a period of recalibration in early 2026. The extraordinary growth experienced during the pandemic has moderated, but the underlying demand for these blue-chip locations remains strong. This creates a nuanced environment for both buyers and sellers.
What’s happening with prices on the Peninsula?
Across the Mornington Peninsula, including suburbs like McCrae, Dromana, Sorrento, Mount Martha, and Portsea, median house prices have recorded drops of up to -3.2% (Barry Plant Dromana, early 2026). This follows a period of substantial growth. Mornington itself is showing a slight price correction, with annual house price change ranging from -2.73% to -4.11% (CoreLogic/OpenAgent). However, Mt Eliza has demonstrated resilience, with a +0.9% annual growth (early 2026).
How does this compare to other coastal areas?
The Mornington Peninsula’s performance is broadly in line with other premium coastal markets. Lorne has seen a more significant correction, with median house prices softening approximately -5.0% over 2025 (OpenAgent December 2025), and units correcting sharply. Torquay is facing headwinds as COVID-era premiums unwind, but limited listings are supporting prices. Jan Juc and Anglesea continue to attract interest for prestige and lifestyle homes, again supported by constrained supply.
What’s driving buyer behaviour in Sorrento and Portsea?
The Mornington Peninsula benefits from a dual buyer pool: permanent residents, a significant proportion of whom are retirees (predominant age group 70–79 years), and Melbourne weekender/holiday home buyers. This consistent demand is underpinned by the coastal lifestyle – beaches, wineries, golf courses, and restaurants – and a significant supply constraint due to the Peninsula’s geography and Green Wedge zoning. High owner-occupier stability, with 43.7% of Mornington properties owned outright (March 2026), also contributes to market resilience.
The real uncertainty – the appraisal spread
Appraisals in the prestige market are currently exhibiting a wider range than in recent years. The correction from peak prices, combined with varying property characteristics and micro-location differences, means that obtaining a consistent and accurate valuation can be challenging. This spread reflects the current market uncertainty and the need for a nuanced understanding of comparable sales.
Frequently asked questions
Is now a good time to sell, or should I wait?
The market is adjusting, but demand remains for well-presented properties in prime locations. Mornington is currently in the “Accelerating Growth” phase of the property cycle (HtAG Analytics, March 2026), suggesting potential for continued momentum over the next 12–18 months. A strategic sale now could capitalise on existing demand before potential further adjustments.
What sale method is best for my property?
Private sale (private treaty) remains the dominant method on the Mornington Peninsula. Auction is selectively used for well-located, affordable properties in Mornington and Rosebud, or those priced $700,000–$1.2M with broad appeal. Most Peninsula listings above $1.5 million utilise private treaty or expressions of interest (EOI).
How long will it take to sell my property?
Median days on market in Mornington are currently 36–38 days (faster than the Victorian median of 42 days). Units are selling slightly faster, with a median of 30 days (early 2026). Selling speed is influenced by property presentation, pricing, and market demand.
Are investors still active in the market?
Investor appeal remains strong due to tight vacancy rates (0.6%) and consistent demand from both permanent residents and tourists. However, rising land taxes may be impacting investor decisions in some areas, as seen in Lorne with unit corrections (OpenAgent December 2025).
Questions to ask your agent
- Can you provide a detailed comparative market analysis (CMA) showing recent sales of properties most comparable to mine, including sale dates and specific property features?
- What is your strategy for marketing my property to both local and Melbourne-based buyers?
- Based on current market conditions, what is your recommended price range, and what is the potential for negotiation?
This article contains general market information based on data current
as at April 2026. It does not constitute financial, legal, or real estate
advice specific to your property or circumstances. For an appraisal and
tailored advice, speak with a Fletchers agent in your area.