Sorrento buyers typically target high-value assets above $1.5 million, predominantly utilizing private treaty or Expression of Interest (EOI) contracts. In contrast, buyers in Rosebud and Rye often seek entry-level or mid-range properties where auctions are more common due to higher competition for affordable family stock.
The Peninsula market has split into two distinct buyer profiles. While the prestige end remains resilient, entry-level buyers are navigating a market adjusting from the COVID-era peak.
The price bracket and sale method divide
Properties priced above $1.5 million, common in Sorrento, almost exclusively use private treaty or EOI. Conversely, well-located affordable properties in Rosebud are frequently sold via auction where buyer competition is high, particularly for homes priced between $700,000 and $1.2 million.
Value seekers vs luxury buyers
Entry-level properties below $1 million are currently offering value opportunities as the market adjusts from the COVID boom (Barry Plant Dromana, early 2026). High-end properties above $1 million continue to sell well and often exceed expectations, reflecting a different set of financial drivers for the prestige buyer.
The impact of the Short Stay Accommodation Levy
We are seeing an increase in listings from investors disposing of holiday homes due to the Victoria Short Stay Accommodation Levy, alongside higher land tax and interest rates (Barry Plant Dromana, early 2026). This is increasing stock levels for sea change buyers across both the prestige and entry-level segments.
The appraisal spread
There is a notable gap between the performance of luxury stock and the entry-level market. While some Peninsula suburbs recorded median house price drops of up to -3.2% in early 2026 (Barry Plant Dromana), high-end properties are still frequently exceeding price expectations.
Frequently asked questions
Are entry-level properties on the Peninsula a good buy now?
Properties priced below $1 million are currently presenting value opportunities as the market undergoes a correction from the COVID boom (Barry Plant Dromana, early 2026). This adjustment creates an opening for buyers who were previously priced out of the Mornington Peninsula market.
Why are there more holiday homes for sale in 2026?
A combination of the Victoria Short Stay Accommodation Levy, increased land tax, and higher interest rates has led investors to dispose of ex-rental and holiday properties (Barry Plant Dromana, early 2026). This has increased the volume of stock available for permanent sea change buyers.
How quickly are properties selling on the Mornington Peninsula?
Selling speed remains strong, with Mornington seeing a median of 36 days on market, which is faster than the Victorian median of 42 days (HtAG Analytics, March 2026). Units are moving even faster, with a median of 30 days (OpenAgent, early 2026).
Should I use an auction or private sale to sell my home?
Private treaty is the dominant method on the Peninsula. Auctions are selectively used for properties between $700,000 and $1.2 million with broad family appeal or in areas like Rosebud where high buyer competition is identified. Properties above $1.5 million generally use private treaty or EOI.
Questions to ask your agent
- What percentage of current buyers in my specific suburb are seeking a permanent residence versus a weekend holiday home?
- Based on the current Short Stay Accommodation Levy, how many competing listings in my price bracket are ex-rental properties?
- Does the current buyer competition for my property’s price point justify an auction, or is a private treaty more likely to attract the high-net-worth pool?
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.