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
Selling a holiday home in 2026 involves navigating increased supply and downward price pressure caused by the Short Stay Accommodation Levy and higher Emergency Services Levy costs for non-principal residences. Permanent residences remain more stable, supported by a tight 0.6% vacancy rate and strong owner-occupier stability. The primary divide in the 2026 market is regulatory.
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
Melbourne buyers remain active on the Mornington Peninsula, particularly in the premium segment where properties above $1 million continue to sell well and often exceed expectations (Barry Plant Dromana, early 2026). While some coastal suburbs, including Sorrento, saw median house price drops of up to -3.2% (Barry Plant Dromana, early 2026), the broader region is
Rye and Rosebud are currently experiencing a market adjustment following the COVID-era boom, with house prices down between -2.73% and -4.11% depending on the source (CoreLogic/OpenAgent, early 2026). However, the broader Mornington Peninsula is in an “Accelerating Growth” phase (HtAG Analytics, March 2026), suggesting potential for renewed momentum. Increased listings from short-stay investors impacted by
