Private treaty is the dominant sale method on the Mornington Peninsula, particularly for properties priced above $1.5 million. While listing volumes and appraisals increased significantly through late 2025 and early 2026 (Raine & Horne), RBA rate hikes in February and March 2026 have dampened buyer urgency (Domain).
The Sorrento and Portsea markets are currently navigating a contradiction between high vendor confidence and renewed buyer caution. While listing activity has increased, the recent shift in interest rates has altered the pace of negotiations for high-end coastal assets.
Why private sale is the standard for the Peninsula
Private treaty is culturally dominant in this region, unlike metropolitan Melbourne. Most Peninsula listings above $1.5 million utilise private treaty or Expressions of Interest (EOI) because the buyer pool for high-end properties is typically smaller and requires more flexible negotiation terms.
Impact of RBA rate hikes on buyer urgency
Vendor confidence improved substantially through late 2025, with appraisals surging over 75% month-on-month into early 2026 (Raine & Horne). However, RBA rate hikes in February and March 2026 have introduced caution, which has dampened the urgency previously seen in the buyer market (Domain).
Short-stay levies and investor listings
Victoria’s Short Stay Accommodation Levy is driving a wave of investor exits. Listings are currently dominated by ex-rental holiday homes being disposed of due to increased land tax and interest rates (Barry Plant Dromana). Despite this increased supply, properties priced above $1 million continue to sell well and often exceed expectations.
The urgency gap
There is a current disconnect between listing volumes, which are up nearly 40% since December 2025 (Raine & Horne), and the actual speed of buyer decision-making. The risk is a misalignment between high appraisal expectations and a buyer pool that is reacting cautiously to rate increases.
Frequently asked questions
How long does it take to sell a property in Sorrento or Portsea?
Well-priced private sales can occur within 1–2 weeks, while properties requiring price negotiation typically take 4–8 weeks. In early 2026, the Melbourne average for days on market sat slightly below the decade average, meaning properties are selling marginally faster than normal (Cotality, March 2026).
Should I use an auction for a high-end Peninsula property?
Auctions are used selectively on the Peninsula for affordable properties with broad family appeal or where multiple competing buyers are already identified. For properties above $1.5 million, private treaty or EOI is the standard approach due to the narrower buyer demographic.
Are investor-owned holiday homes affecting the market?
Yes, many investors are listing holiday homes because of the Short Stay Accommodation Levy, higher land tax, and rising interest rates (Barry Plant Dromana). This has increased the volume of ex-rental properties entering the market, though properties over $1 million remain resilient.
What is the typical settlement period for a coastal property?
Settlement in Victoria generally ranges between 30 and 90 days after the contract is signed. For standard residential transactions, a 60-day settlement is the most common arrangement.
Questions to ask your agent
- What percentage of your current buyer database is specifically seeking properties over $1.5 million in the Sorrento and Portsea pocket?
- Given the RBA rate hikes in February and March, how has the average time to move from first inspection to signed contract changed?
- How is the increase in ex-rental holiday home listings affecting the competition for premium, owner-occupied residences in this area?
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.