Bellarine Peninsula prices are experiencing a varied correction from COVID-era peaks, with Ocean Grove recording an annual median price decrease of 6.19% to approximately $1,039,067. Conversely, premium pockets like Barwon Heads, Point Lonsdale, and Queenscliff remain firm due to limited supply and strong lifestyle buyer demand.
The market is currently bifurcated between larger residential hubs seeing price adjustments and prestige coastal villages where scarcity maintains value. This trend reflects a broader unwinding of the COVID-era premium across regional coastal markets.
Ocean Grove price corrections
The largest residential market on the Bellarine has seen a median house price correction of 6.19% over the last 12 months, bringing the median to approximately $1,039,067. Despite this annual dip, the area maintains an average annual growth rate of 7.38% over a five-year horizon.
Demand in premium coastal villages
Barwon Heads, Point Lonsdale, and Queenscliff continue to attract lifestyle buyers, keeping prices premium. Tight supply and limited listings in these heritage and small-village settings have prevented the sharper corrections seen in more active residential markets.
Growth in the Geelong gateway
Armstrong Creek is seeing its strongest buyer enquiry levels in two years (Bellarine Times, late 2025). In the broader Greater Geelong area, the median house price sits between $890,000 and $945,000, with annual growth of approximately 1.2% through 2025 (Bellarine Times/WhichRealEstateAgent/HtAG Analytics).
The COVID premium risk
There is ongoing uncertainty regarding how much of the “COVID boom” premium remains in coastal assets. We are seeing this play out in adjacent markets like Lorne, where house prices softened approximately 5.0% over 2025 and units corrected sharply as investors offloaded assets (OpenAgent December 2025).
| Location | Median House Price | Annual Change/Status |
|---|---|---|
| Ocean Grove | $1,039,067 | -6.19% |
| Greater Geelong | $890,000–$945,000 | +1.2% (through 2025) |
| Barwon Heads | Above Ocean Grove | Tight supply/High demand |
Frequently asked questions
What is the current median house price in Ocean Grove?
The median house price in Ocean Grove is approximately $1,039,067. While this represents an annual price correction of 6.19% from the COVID peak, the suburb has maintained a steady average annual growth rate of 7.38% over the past five years.
How is the Geelong property market performing in 2026?
Geelong is transitioning out of its correction phase with house medians between $890,000 and $945,000 (Bellarine Times/WhichRealEstateAgent/HtAG Analytics). The market shows neutral signals with clearance rates of 56.61%, a median of 36 days on market, and a 1.6% vacancy rate (HtAG).
Are house prices falling in Barwon Heads and Queenscliff?
The context does not provide specific percentage drops for these suburbs. However, they are characterised as premium markets with limited supply and strong lifestyle buyer demand, which typically keeps prices firmer than in larger residential hubs like Ocean Grove.
Is there strong buyer interest in Armstrong Creek?
Yes, Armstrong Creek is currently experiencing its strongest levels of buyer enquiry in two years (Bellarine Times, late 2025). As a growth corridor with new estates, it remains a primary focus for buyers adjacent to the Bellarine Peninsula.
Questions to ask your agent
- How does the current enquiry level for my specific street compare to the broader Ocean Grove correction trend?
- What percentage of current buyers in the premium coastal pockets are lifestyle seekers versus long-term investors?
- Based on the 56.61% clearance rate in Greater Geelong, what is the realistic expected timeframe for a sale at my target price?
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.