Yes, houses are still selling in Rye, Sorrento, Rosebud and Portsea in April 2026, though the market is adjusting from the rapid growth experienced during the COVID period. Median house prices across these suburbs have seen drops of up to -3.2% (Barry Plant Dromana, early 2026), with properties taking approximately 36–38 days to sell (HtAG Analytics, March 2026). Demand remains strong, driven by both permanent residents and Melbourne-based buyers, but increased land tax and interest rates are influencing investor behaviour.
The Mornington Peninsula property market is currently in a phase of correction following substantial price increases. While sales continue, vendors need to be realistic about pricing expectations and understand the evolving dynamics impacting buyer behaviour. The dual buyer pool – permanent residents and weekenders – continues to underpin demand, but the market is more sensitive to economic factors than it was in recent years.
What’s happening with house prices in Sorrento and Portsea?
Both Sorrento and Portsea have recorded drops in median house prices of up to -3.2% (Barry Plant Dromana, early 2026) alongside McCrae, Dromana, Blairgowrie, Capel Sound, Mornington, Somerville, and Tyabb. Properties priced above $1 million are still selling well, but entry-level properties (below $1 million) are presenting value opportunities as the market adjusts. The broader Peninsula is showing signs of a re-rating, with Balnarring and Baxter also in an “Accelerating Growth” phase (HtAG Analytics, March 2026).
Are units selling better than houses?
Units are currently selling faster than houses on the Mornington Peninsula. The median days on market for units is 30 days, compared to 38 days for houses (HtAG Analytics, March 2026). Unit medians are around $755,000–$760,000 (CoreLogic/OpenAgent) and have seen annual growth of +8.8% (OpenAgent), while house price growth is flat to negative across most suburbs. This suggests increased buyer interest in more affordable options.
What’s driving the change in the market?
Several factors are influencing the market. Victoria’s Short Stay Accommodation Levy is prompting some investors to sell holiday homes, increasing listings (Barry Plant Dromana, early 2026). Rising interest rates and land tax are also impacting investor decisions. However, the Peninsula’s inherent supply constraints – bounded by water and Green Wedge zoning – and strong owner-occupier base (43.7% own outright, 33.9% with a mortgage) continue to support values. The Peninsula Link Freeway provides convenient access to Melbourne.
The real uncertainty – the investor exit
The number of short-stay investment properties coming onto the market due to the new levy creates uncertainty. It’s difficult to predict the full extent of this impact on supply and pricing. While properties above $1 million are holding firm, the increased volume of ex-rental properties could put downward pressure on prices in certain segments, particularly those reliant on holiday rental income. This is a dynamic situation requiring careful monitoring.
Frequently asked questions
What’s the best way to sell my property right now?
Private sale (private treaty) remains the dominant method on the Mornington Peninsula. Auction is selectively used for well-located, affordable properties in Mornington and Rosebud, or those with broad family appeal, priced between $700,000–$1.2M. Listings above $1.5 million generally use private treaty or expressions of interest (EOI).
How long should I expect my property to be on the market?
Currently, properties are taking around 36–38 days to sell (HtAG Analytics, March 2026), which is faster than the Victorian median of 42 days. However, this can vary depending on location, property condition, and pricing. A realistic price expectation is crucial for a timely sale.
Are buyers still willing to pay premium prices?
Properties priced above $1 million are still selling well and, in some cases, above expectations. However, buyers are more discerning and are conducting thorough due diligence. Value for money is a key consideration, and properties requiring significant renovation may attract lower offers.
What impact is the interest rate rise having on the Peninsula market?
Rising interest rates are impacting buyer borrowing capacity and affordability, contributing to the market adjustment. This is particularly noticeable in the investor segment, with some choosing to sell properties rather than absorb increased mortgage costs. It’s creating a more balanced market.
Questions to ask your agent
- Based on recent comparable sales, what is a realistic price range for my property in the current market?
- What marketing strategies will you employ to reach both local and Melbourne-based buyers?
- Can you provide specific examples of how you’ve successfully navigated the changing market conditions for vendors in my suburb?
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.