The Bellarine Peninsula property market has experienced a correction from the highs seen during the COVID period, with Ocean Grove’s median house price decreasing by 6.19% annually (as of early 2026). However, premium coastal towns like Barwon Heads and Point Lonsdale are holding firm due to limited supply and consistent demand. Geelong, the gateway to the Bellarine, is showing signs of stabilising with modest growth of +1.2% through 2025.
While interest rate increases in 2026 have undoubtedly introduced a degree of caution to the market, the Bellarine Peninsula isn’t experiencing a uniform slowdown. The impact varies significantly depending on location and property type, with coastal areas demonstrating more resilience than others.
What’s happening with house prices on the Bellarine?
Ocean Grove, the largest residential market on the Peninsula, has seen its median house price settle around $1,039,067, with that 6.19% annual decrease representing a correction from the peak (data from early 2026). Barwon Heads, known for its premium small-village character, continues to benefit from very tight supply and strong demand, typically commanding prices above Ocean Grove. Point Lonsdale and Queenscliff, with their heritage appeal, are also maintaining strong buyer interest.
Is Geelong’s market influencing the Bellarine?
Geelong’s market is transitioning out of its correction phase, with the median house price currently between $890,000 and $945,000 (Bellarine Times/WhichRealEstateAgent/HtAG Analytics, 2026). Clearance rates in Greater Geelong are around 56.61% (HtAG, 2026), and the median days on market is a neutral 36 days. This stabilisation in Geelong is a positive sign for the Bellarine, as it serves as the primary access point and lifestyle hub for many buyers.
What about new developments and growth corridors?
Armstrong Creek, adjacent to the Bellarine, is experiencing the strongest buyer enquiry levels in two years (Bellarine Times, late 2025). This growth corridor is attracting first-home buyers and families seeking affordability and new housing options, which indirectly supports demand across the broader Bellarine region. The Mornington Peninsula, notably, is in an “Accelerating Growth” phase according to HtAG Analytics (March 2026), despite recent flat growth, suggesting potential for broader Peninsula re-rating.
The real uncertainty: The appraisal spread.
Appraisals on the Bellarine are currently exhibiting a wider range than we’ve seen in recent years. This is due to the varying impacts of interest rate rises and the differing levels of demand across specific micro-locations. Buyers are more discerning, and properties requiring significant renovation or located further from the coast are experiencing more pronounced price adjustments. This makes accurate pricing crucial.
Frequently asked questions
What’s the outlook for holiday rentals on the Bellarine?
The holiday rental market has cooled slightly, particularly for units, as investors have offloaded assets amid rising land taxes (OpenAgent, December 2025). However, well-maintained properties in prime coastal locations continue to attract strong bookings, especially during peak seasons. Rental yields in Geelong are currently around 2.91% gross (HtAG Analytics, Greater Geelong City).
Are buyers still willing to pay a premium for coastal properties?
Yes, particularly in tightly held areas like Barwon Heads and Point Lonsdale. Lifestyle buyers continue to prioritise proximity to the beach and the coastal amenities. Limited supply in these areas is supporting prices, even as broader market conditions moderate. Jan Juc and Anglesea are also seeing continued interest.
How do days on market compare to last year?
The median days on market in Greater Geelong is currently 36 days, which is considered a neutral range. This is slightly longer than the faster selling times experienced in 2024, but still indicates reasonable buyer activity. Properties that are well-presented and realistically priced are still selling within a reasonable timeframe.
What impact are interest rate rises having on buyer confidence?
Interest rate rises have undoubtedly increased buyer caution. Buyers are taking more time to make decisions and are more focused on affordability. However, the Bellarine’s strong lifestyle appeal and relative affordability compared to Melbourne continue to attract buyers, mitigating some of the negative impact.
Questions to ask your agent
- Can you provide a detailed comparative market analysis (CMA) specifically for my property, highlighting recent sales of comparable homes in my immediate area?
- 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 rationale behind it?
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.