The Mornington Peninsula continues to demonstrate its long-standing resilience, with lifestyle appeal, limited supply and tightly held ownership patterns underpinning demand across the region.
While broader economic conditions have led to a more measured pace of activity, transaction levels remain steady, reflecting the Peninsula’s enduring position as both a lifestyle destination and long-term investment.
Recent Cotality data reinforces this strength, with 96.3 per cent of sales in the December 2025 quarter delivering a profit and a median resale gain of $475,000—placing the region among the strongest-performing markets nationally.
Director
Director at Kay & Burton Andrew Hines notes that while buyers are more considered in their approach, demand remains in place.
“Buyers are approaching decisions with greater discipline,” Mr Hines says. “But when the right property presents itself—particularly one that aligns with lifestyle and long-term value—they are prepared to act.”
Owner-occupiers are increasingly shaping the market, with well-renovated permanent homes attracting the most consistent interest, reflecting a shift toward longer-term Peninsula living.
“when the right property presents itself—particularly one that aligns with lifestyle and long-term value—[Buyers] are prepared to act.”
—Andrew Hines
At the prestige end, the picture remains strong. Lorna Duffy, Senior Sales Consultant at Kay & Burton Sorrento, says Portsea and Sorrento continue to perform, with limited supply driving competition for premium homes.
“We’re seeing good activity at both ends of the market, from premium coastal holdings through to entry-level opportunities,” Ms Duffy says.
Portsea continues to lead the Peninsula’s prestige market, with median house prices around $3.6 million, rising 3.9 per cent over the past year, according to Cotality.
This strength is reflected in market share, with Kay & Burton capturing 29 per cent of $5 million-plus sales across the southern Peninsula in 2025, ahead of the nearest competitor at 21 per cent.
“The Peninsula offers a unique combination of space, privacy and connection, which continues to resonate strongly with buyers.”
—Lorna Duffy
Senior Sales Consultant
“In times of broader uncertainty, lifestyle becomes even more important,” Ms Duffy adds. “The Peninsula offers a unique combination of space, privacy and connection, which continues to resonate strongly with buyers.”
Tightly held ownership patterns further highlight the depth of demand. In Balnarring Beach, the median hold period sits at 24.5 years—the second longest in Victoria—while Shoreham and Flinders also rank among the state’s most tightly held locations, according to Cotality.
Looking ahead, the current environment is presenting considered opportunities for both buyers and sellers.
“Sellers should remain open-minded, while buyers should take advantage of the opportunity to secure some excellent properties currently on the market,” Mr Hines says.