Coastal property markets appear to be becoming very lucrative for real estate agents, as prices are growing faster along the Port Phillip Bay coastline and the Mornington Peninsula than they are in the greater Melbourne area.
Findings published in the latest Australian Residential Review from Knight Frank revealed this to be the case - even though such properties used to be thought of as only desirable for purchase as holiday home destinations.
House prices in the Mornington Peninsula increased by eight per cent year-on-year in the March quarter - and prices in Geelong rose by almost as much at 7.9 per cent. In the same three-month period, Melbourne only grew by 6.8 per cent.
Agents covering Mornington say that approximately 60 per cent of their sales are coming from buyers coming from the east of Melbourne. This trend is particularly prominent among those from areas like Glen Waverley and Box Hill, which are traditionally attractive to developers.
These buyers are said to recognise that their money can go much further if they invest along the Peninsula.
Shane Pope of Eview Mornington Peninsula told Domain that most of his buyers have come from places such as Doncaster, Mount Waverley and Wantirna over the past 18 months.
"One client sold her home next to a freeway in Doncaster and was not only able to buy [a] similar house here on the beachfront, she kept enough money to completely fund her super forever," he commented.
Rob Muir, a property developer and vendor of Mr Pope, has lived in Mornington for 12 years and said more of his neighbours appear to be from Melbourne and have relocated in search of a new lifestyle by the sea.
"It's really a magic area," Mr Muir remarked. "Mornington has been going ahead since we moved here, it goes up more and more every year."
