The introduction of Victoria’s Short Stay Accommodation Levy and increased land taxes have led to a rise in ex-rental and holiday home listings in Rye and Rosebud. This has created downward pressure on entry-level properties below $1 million, while premium properties over $1 million continue to sell well and often exceed expectations (Barry Plant Dromana,
Prestige properties priced above $1 million continue to attract competition and are selling well, often exceeding expectations (Barry Plant Dromana, early 2026). While some suburbs, including Sorrento, have seen median price drops of up to -3.2% (Barry Plant Dromana, early 2026), the high-end sector is supported by a dual buyer pool of Melbourne weekenders and
The market is bifurcated, with Sorrento experiencing median house price drops of up to -3.2% (Barry Plant Dromana, early 2026). However, broader regional indicators are positive, with neighbouring Mornington, Balnarring, and Baxter in an “Accelerating Growth” phase (HtAG Analytics, March 2026). Inventory is increasing as the Short Stay Accommodation Levy prompts investors to dispose of
Buyer appetite on the Mornington Peninsula is split by price point. Properties priced above $1 million are selling well and often exceeding expectations, while entry-level homes below $1 million are seeing a price correction as the market adjusts from the COVID peak (Barry Plant Dromana, early 2026). The Peninsula market is currently defined by a
Yes, prestige buyers remain active. Properties priced above $1 million are selling well and often exceeding expectations, despite broader median price corrections in the region. This demand is sustained by a dual buyer pool of Melbourne weekenders and permanent retirees. The prestige market on the Mornington Peninsula is currently operating independently of the entry-level sector.
Selling patterns in the Mornington Peninsula follow a traditional cycle where Spring (September–November) is the peak for volume and competition, followed by Autumn (March–May). February marks the annual market restart, while December and January see a significant drop in buyer activity. Winter (June–August) typically yields lower transaction volumes but attracts more serious, motivated buyers. Seasonal
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.
Rye and Rosebud are transitioning toward a lifestyle-driven market as the Short Stay Accommodation Levy prompts investors to sell. This has increased the supply of ex-rental holiday homes, putting downward pressure on entry-level price points while premium properties continue to perform well. The balance is shifting due to legislative changes and holding costs. Investors are
The primary difference is the current volume of supply. Rye and Rosebud are experiencing downward pressure as the Short Stay Accommodation Levy prompts owners of holiday rentals to exit the market. Sorrento and Portsea are less affected by this specific supply surge, although Sorrento has seen median house price drops of up to -3.2% (Barry
Spring (September–November) remains the peak selling season for volume and competition, followed by Autumn (March–May). While the region is in an “Accelerating Growth” phase (HtAG Analytics, March 2026), February and March 2026 RBA rate hikes have dampened buyer urgency and increased price sensitivity (Domain). Selling in the coastal corridor requires balancing traditional seasonal peaks against
