The word ‘unprecedented’ has perhaps been overused during the global pandemic, however the volume of sales and the values achieved in the 2021 financial year on the Mornington Peninsula by Kay & Burton are second to none.

A total of 184 sales were recorded across the Mornington Peninsula, with a total value of $589,776,500 – well over double the previous financial year and testament to the company’s reputation, innovative approach and its experienced team which spans four offices (Portsea, Sorrento, Red Hill and Flinders).

As was seen all over regional Victoria, the Mornington Peninsula experienced extraordinary demand, which was obviously fuelled by the benefit of historic low interest rates and the effect of Coronavirus.

During the first quarter, Kay & Burton received a very strong level of inquiry from new buyers to the region, most of whom had not owned properties on the Mornington Peninsula previously but were seeking the lifestyle and convenience of Western Port and Port Phillip Bay areas.

Those seeking a permanent lifestyle change have been afforded the opportunity, with the capacity to work remotely now the norm. Proximity to the city, quality schools, bay and ocean beaches, world class golf courses, wineries and restaurants, boutique shopping as well as all the necessary services have made the Mornington Peninsula a very appealing option.

The ban on travel also stimulated the demand for holiday homes in coastal regions. Kay & Burton Portsea Director Liz Jensen observed an increase in buyers whose travel plans were impacted by restrictions and the uncertainty of border closures.

“The number of sales doubled between 2020 and 2021 and the value of those transactions in Portsea, Sorrento and surrounding areas tripled, which is an extraordinary result.

“The increased demand for holiday homes in Portsea and Sorrento mirrored the announcement of travel restrictions and lock down directives. Buyers have more confidence investing in property located in a beautiful coastal region, than planning interstate and international travel, not to mention identifying the potential capital growth.”

Sellers capitalising on market conditions also emerged during the first quarter, culminating in an exceptional level of sales activity in the second quarter. This level of transaction has never been seen before.

While it was difficult to predict whether the demand would be sustained, the second half of the financial year continued to deliver unparalleled results, with a rush of transactions in the last quarter ahead of stamp duty increases.

Andrew Hines, Director Kay & Burton Flinders predicts the property market on the Mornington Peninsula will continue to be competitive this financial year, both at auction and by private sale. 

“Bidding at auctions has been particularly spirited, with several potential buyers competing well beyond vendor’s reserves, achieving prices we’ve never seen before.”

“We have also seen a number of properties transact off market. A thorough understanding of our client’s needs, strong relationships, and an intimate knowledge of the region often creates the perfect opportunity to exchange on a property without extensive advertising and promotion.”  

The impact of the global pandemic on the property market has been somewhat unexpected and quite unique to the Mornington Peninsula, although when compared to The Hamptons, New York, strong similarities can be seen between the performance of the two regions and distinct parallels can be drawn as to why.

According to the New York Times, the Hamptons real estate market has also surged during the last financial year.

“More than a year after the COVID-19 pandemic began, demand for homes remains robust in the moneyed Hamptons, boosted by a swell of urbanites settling in.

“Enabled by low interest rates and Zoom technology that has made working remotely possible, some enrolled their children in local schools, and helped transform the affluent weekend and summer getaway into a year-round community.”

The results of both regions, on opposite sides of the globe, reinforces the desire for relocation to coastal areas, either for a permanent lifestyle change or investment in a holiday home, bolstering the property market during otherwise uncertain times.

Despite the global pandemic and the obvious ramifications economically and socially, last financial year was the strongest in Kay & Burton’s history, confirming its dominant position and long-standing reputation on the Mornington Peninsula.

SOLD: 35 WILDCOAST ROAD, PORTSEA

35 WILDCOAST ROAD, PORTSEA

SOLD: 17-19 MOANA COURT, ANDREWS BEACH

17-19 MOANA COURT, ANDREWS BEACH

SOLD: 343 MUSK CREEK ROAD, FLINDERS

343 MUSK CREEK ROAD, FLINDERS
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