Source : the age
The Mornington Peninsula housing market has been softening, battered by a return to city living and economic pressures following the lockdown years.
The peninsula’s median house value fell 5.7 per cent over the 12 months to the end of 2024, to $915,961. The time it took to sell a house rose over the same period, up to a median 35 days on market from 29 in December 2023.
Vendors were taking a median discount at the end of 2024 of 4.2 per cent, though it had improved since a trough of 5 per cent in July.
CoreLogic head of Australian research Eliza Owen said the end of the pandemic sea-change craze had significantly slowed demand on the peninsula.
“The Mornington Peninsula is in a downturn and it’s one of the furthest markets from its peak than the other Melbourne house markets,” she said.
“Melbourne house markets are 6.5 per cent below their peak in March 2022, if you look at just the Mornington Peninsula, values are down 14.3 per cent from a high in March 2022.”
The typical house on the peninsula costs $172,417 less than at the peak.
A rush of Melburnians escaping lockdowns over-inflated the once-sleepy property market, but it had boosted prices past where they would have been otherwise, even after declines.
“The reason the downturn has been more notable across the Mornington Peninsula is because it was one of those markets that really overshot growth through the pandemic period, and overall values on the Mornington Peninsula are still 22.2 per cent higher than in March 2020,” Owen said.
“It’s continuing to correct as interest rates are sitting higher and for longer than expected.”
House-proud residents weren’t deterred from listing, however. Mount Martha home owner Monica Lee was confident she’d find a buyer for her much-loved, architecturally designed house at 30 Ian Road.
Monica Lee and grandchildren (from left) Milla, 17, Harper, 15, and Tiger, 13 – pictured with dogs Billie and Maizie – at Lee’s Ian Road, Mount Martha, home.Credit: Paul Jeffers
“While the market is subdued at the moment, I do believe good quality property is a solid long-term investment,” she said. “I’m going to be buying and selling in the same market. If I got more for my property, we’d have to pay more for our next one.”
Lee and her partner are retired and want a more low-maintenance home to enable them to travel without worrying about the native garden or the pool on the north-facing deck. She hoped the home would sell to a family.
“This house is a great home for a young family … it’s a great time to move to the Mornington Peninsula and make a lifestyle change because property is more affordable,” she said. “It’s a great place for kids to grow up, because they spend less time on screens and more time doing activities like surfing, sailing and mountain biking.”
Danckert real estate director Sam Danckert had Lee’s listing; he said the weakening market had benefited locals, particularly long-term owners.
“There has been a lot of adjustment over the last two years coming off the back of COVID hysteria when the market peaked and since interest rates started escalating and land tax rates have increased,” he said. “That’s enabled a lot of local buyers to trade up in the market in the absence of the flood of Melburnians coming into the market.”
The slowing market had drawbacks too, Danckert said. “There is a little bit of hesitancy because of how slow the market is. [People are worried about] not being able to sell if you’re already committed to buy.”
As well as higher land tax on secondary properties, home owners who let out their property on short-stay platforms now face a levy, while a tax applies on unoccupied properties.
Peninsula resident Shelby Van Zwol was looking to upgrade her family home to a forever home in the Mount Martha area. She said the slow market made it hard to find what she was looking for. “What I’m struggling with now is that nothing in our dream wishlist is coming to the market,” she said.
Shelby Van Zwol is looking for her dream home in Mount Martha. Credit: Joe Armao
“We want to live in the golden triangle: it’s walking distance to the village, a decent-sized block of land … they often come with bay glimpses and bay views. There are some streets that come to mind that I’m interested in and nothing is coming to market.”
Van Zwol and her husband had been looking for about four months. She’d noticed vendors had unrealistic expectations for some homes with minor renovations, and others she suspected had bought in the boom and overpaid.
“They’re sitting on the market for months and months and months and they sell for less than what they wanted for it,” she said. “We’re not going to shy away from a renovation, but a lot of the properties coming onto the market have had a smaller renovation, and they’re still wanting a premium price. They still want to get an extra million out of you.”
