Victorian beach houses find new floor despite land tax forcing sales

Victorians’ love for a holiday near the beach hasn’t diminished, even if how much we want to spend on it has.

Ray White research has ­revealed Victoria is home to four of the nation’s top 10 premium holiday home markets.

The research shows the stretch of the Great Ocean Road from Lorne to Anglesea commands the highest median price in the state at $1.57m, yet records modest 3.8 per cent ­annual growth.

And towns near the tip of the Mornington Peninsula follow at $1.31m with identical 3.8 per cent growth.

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And towns near the tip of the Mornington Peninsula follow at $1.31m with identical 3.8 per cent growth.

Phillip Island and Otway (which includes Apollo Bay, Forrest and Lavers Hill), were among the areas with the ­biggest proportion of holiday homes.

But the sector was in a state of flux after changes to the state’s land tax regime dramatically raised the cost of holding a coastal weekender.

Ray White head of research Vanessa Rader said the recent regulatory changes had also ­altered investment calculations for people who rented out their holiday homes.

“Victoria’s 7.5 per cent levy on short-stay platform revenue affects four locations in the analysis, while various councils implement rates surcharges for Airbnb properties,” Ms Rader said.

“These measures respond to housing affordability pressures but reduce rental income potential for holiday home investors.”

The land tax issue is vexing for holiday home owners. Many have chosen to sell, while others turned to short-term holiday rentals to cover the additional costs.

But agents are reporting a recovery in the market, as new buyers see value.

Crowders Real Estate agent Sam Crowder said the Peninsula market was coming off a “low base”, having been heavily impacted by the rise in taxes and charges.

“The market has declined because of certain taxes and charges but, at the same time, it’s a very good time for people to enter the Peninsula,” Mr Crowder said. “People have suddenly seen the Peninsula represents a level of value. We’re definitely seeing an impetus of people looking back to the Peninsula for holiday and certainly permanency is there.”

Permanent occupiers now represented about 65 per cent of ­buyers, Mr Crowder said, many looking to downsize.

But he said housing supply was down 20 per cent compared with recent highs. The price point up to $1m was the most in demand through areas such as Rye and Tootgarook, rising to $1.5m to $2m at Blairgowrie and Sorrento.

“Once you go above these levels, the action is less,” Mr Crowder said.

“With holiday investments, people are leveraging against their assets in the city. Some people have got endless amounts of money, but more of us have a tighter budget.”

Bellarine Property agent Peta Walter said traditional weekender hot spots, such as Barwon Heads, were attracting more permanent residents from the city, given the ability to work from home part time.

“You’ve got a bit more work-life balance,” she said. “People seem to think the commute back to the city is quite good from Barwon Heads, too, even if it is a weekender or a holiday house.”

Victoria’s most expensive coastline stretches from the Mornington Peninsula to Lorne, with median house prices stretching from about $1.2m in Torquay, $1.6m in Lorne and Sorrento and $4m in Portsea.

But the further you drive, the relatively cheaper beach homes become, with median house prices around $850,000 in Apollo Bay and Phillip ­Island towns.

Great Ocean Road Real ­Estate Apollo Bay agent Darren Brimacombe said the level of interest in properties slowed down above $1m.

“I think it’s just the way the economy is, people aren’t stepping up to the next level unless they’re at the very top end, whereour Lorne-to-Anglesea market is quite strong,” he said.

But Mr Brimacombe said the newly opened West Gate Tunnel could ease the pain of getting to holiday homes in southwest Victoria at least.

“We’re expecting the market to pick up once the road opens because we’ve really struggled with that Westgate clog over the last five to seven years. It’s had a massive impact,” he said.

“You’re either getting clogged up for a good 40 minutes trying to get out, or you’re coming back late on Sunday.”

Ninety Mile Beach is the furthest from the city, yet Sale agent Mark Elliman said Melbourne families still provided the biggest market in hamlets such as Seaspray, The Honeysuckles, Golden Beach and Paradise Beach.

With Samantha Healy, Nicole Mayne

307 Hanlon Parade, Portland

$810,000

Boyd Falconer, A1 Real Estate Solutions

At 307 Hanlon Parade, Portland, this double‑storey three‑bedroom home on a generous block offers uninterrupted sea views from both levels. An elevated outlook to the beach and walking tracks sits directly across the road. Inside, the main bedroom has a brand‑new ensuite, with additional living spaces ready for updating. A self‑contained rear unit provides flexibility and potential with refurbishment. Outdoor space includes a double garage with rear yard access for boat or caravan parking, room for entertaining, and a veggie patch. About 2.3km from the CBD, it blends convenience with coastal amenity.

49 Fergusons Rd, Allestree

$425,000

Boyd Falconer, A1 Real Estate Solutions

At 49 Fergusons Road, Allestree, this waterfront home places the ocean metres from the front door. An elevated kitchen and open‑plan living capture uninterrupted sea views, with large front windows drawing natural light. A balcony extends the outlook for relaxed brunch or evening drinks. The layout includes two bedrooms and a combined bathroom/laundry, with extra storage beneath the house. About 8.5km from Portland CBD, the 587sqm block provides scope to extend or redesign for a low‑maintenance coastal retreat or investment.

174 Griffiths St, Port Fairy

$3.7m-$3.9m

Penny Adamson, Charles Stewart Warrnambool

Port Fairy’s classic beach house at 174 Griffiths St sits forward on East Beach with a dune‑front position. Mid‑century design pairs with contemporary comfort: polished hardwood floors, soft white finishes, and double‑glazed windows framing beach views. Sunlit open‑plan living links a retro kitchen, a wood heater, and split‑system airconditioner. The living area opens to a sheltered deck, lawn, and direct beach access. Three bedrooms include two with ocean views; the main opens to the timber deck. A study sits beside the living area, and two renovated bathrooms feature neutral tones.

5 Old Great Ocean Rd, Port Campbell

$759,000-$834,000

Gerard Delaney, Ray White Timboon

At 5 Old Great Ocean Road, Port Campbell, this two‑bedroom cottage on an 824sqm front‑row allotment has bay and ocean views across Port Campbell Bay to 2 Mile Beach. A 270‑degree wraparound deck links sun‑filled open‑plan living to the outdoors. Inside are polished hardwood floors, reverse‑cycle heating and cooling, a bathroom with shower over tub, and a European laundry. Both bedrooms have robes and sliding doors to the deck. About 200 metres to the beach and 10 minutes to the 12 Apostles, the block provides storage, a secure backyard and potential for a shed or pool (STCA).

1/33 Cawood St, Apollo Bay

$650,000-$700,000

Darren Brimacombe, Great Ocean Road Real Estate, Apollo Bay

The 1965 two-bedroom fibro cottage sits 460 metres from the beach at 1/33 Cawood St, Apollo Bay. Held by one family, it retains coastal character with open‑plan living, a compact kitchenette and a central bathroom. Solar panels and solar hot water support low‑maintenance living. The address places cafés, restaurants and hotels within a short walk. Operated as an Airbnb, it offers scope as a retreat, investment or permanent base. Set near the Otway National Park, it’s a simple way to enjoy swimming, surfing and beach walks.

14 Mitchell Grove, Separation Creek

$4m-$4.2m

Marty Maher, Great Ocean Road Properties

Perched above Separation Creek, the Crosier Scott Architects design built by its master‑builder owner, with more than 1000 tonnes of concrete anchoring sculptural forms to the site at 14 Mitchell Grove. Concrete, Corten steel, Colorbond and Alucobond define a low‑maintenance exterior; inside, burnished concrete floors, solid timber and finely detailed joinery set a calm tone. Hydronic in‑slab heating, premium appliances, integrated technology and a 600‑bottle climate‑controlled wine cellar support daily living. Vast glazing frames coastal and hinterland outlooks. The home won HIA Australian Home of the Year 2024, among multiple accolades.

140 Smith Street, Lorne

$3.7m-$3.9m

Ian Stewart, Great Ocean Road Real Estate, Lorne

At 140 Smith St, Lorne, the two‑storey, north‑facing home takes in ocean outlooks across Louttit Bay to Aireys Inlet. Renovated in 2020, the upper entry level places the main bedroom with a walk‑in robe and ensuite alongside the open kitchen, living and dining, plus a billiard room with a bar and wood heater. Downstairs offers four bedrooms, a bunkroom and two bathrooms. Timber floors, stone benchtops, multiple fireplaces, Nobo heaters in all bedrooms and split‑system heating/cooling feature throughout. Expanses of glass open to a sunlit deck. A paved driveway, double carport, storage and established gardens complete the setting.

225 Jarosite Rd, Bells Beach

$5.25m-$5.5m.

Shaun O’Callaghan, Natural Real Estate Torquay

A secluded Bells Beach hideaway on a 4.13ha property at 225 Jarosite Rd features a three-bedroom 1990s house with a surf‑check tower, an elevated viewing room and ocean outlooks from the main bedroom and ensuite spa. Established by surf and skate identities, it includes a skate ramp, teepee, a self‑contained studio and a natural amphitheatre that has hosted small concerts. High timber ceilings, extensive glazing and wraparound decks connect open‑plan living to the bush, where kangaroos graze. A large shed adds a games room and gym, with scope to infill under the house.

19 Bridge Rd, Barwon Heads

$1.35m-$1.45m

Peta Walter, Bellarine Property Barwon Heads

A renovated 1950s beach house delivers inner‑village convenience metres from the river, shops, golf course and cafés at 19 Bridge Rd, Barwon Heads. Original Baltic pine floors, timber windows and an open‑plan layout anchor three double bedrooms, two bathrooms and two decks. The kitchen features stone benchtops, a Bosch oven, induction cooktop and Miele dishwasher, with a servery to a private barbecue deck and gardens. Comforts include ducted heating, reverse‑cycle air‑conditioning, a north‑facing deck, outdoor shower, and a laundry. A single carport plus extra off‑street parking sit behind a fully fenced yard.

1 The Avenue, Ocean Grove

$3.2m-$3.5m

Levi Turner, Bellarine Property Barwon Heads

This brand-new three-bedroom, two-bathroom home offers river, Bluff and Spit views from expansive glazing and outdoor terraces at 1 The Avenue, Ocean Grove. A stone kitchen with Taj Mahal quartzite, Miele appliances and a butler’s pantry anchors two living zones, linked by a sculptural staircase and internal lift. The main suite has river outlooks, walk-in robe and ensuite. Engineered oak flooring, New Zealand wool carpet and an in-built ADF Linea 100 fireplace add comfort. Ducted climate control, solar with Tesla battery, landscaped gardens and an oversized garage round out coastal convenience.

3 Lawrence Road, Point Lonsdale

$950,000

Skye Patel, Kerleys Coastal, Point Lonsdale

This 1960s beachside home sits 350m from Springs Beach and an easy walk to the shopping village at 3 Lawrence Rd, Point Lonsdale.

The retro beach house on a 634sq m block offers scope to renovate, extend or redevelop. Preserved hardwood floors and clean lines frame light‑filled living and dining with a northern garden aspect. The layout includes three bedrooms, a bathroom and laundry. A generous backyard with access on both sides suits play, barbecues and future plans, in a well‑located pocket of Point Lonsdale.

291 The Esplanade, Indented Head

$1,650,000-$1,800,000

Lee Martin, Bellarine Property

Set on the high side of The Esplanade, this quintessential bay beach home fronts Half Moon Bay with views to the Melbourne skyline. On 851sq m at 291 The Esplanade, Indented Head, the two‑storey, three‑bedroom beach house offers scope to renovate or rebuild. Open‑plan living with hardwood floors connects to an elevated deck. The main bedroom takes in a coastal aspect; all bedrooms are robed. There’s a four‑vehicle carport, caravan bay and ample off‑street parking. From the doorstep it’s a short walk to the calm bay beach, waterside tracks, yacht and boat clubs, the general store, and Portarlington’s services and Docklands ferry.

17 Boroondara Rd, Sorrento

$4.95m

Rob Curtain, Sotheby’s International Realty

At 17 Boroondara Road, Sorrento, ‘Amagansett’ by de Campo Architects sits in a quiet cul-de-sac opposite Sorrento Park, a short walk to the front beach and village. An articulated cedar facade leads to a guest suite and garaging, then a landscaped courtyard with pool and multiple entertaining zones. Full‑height pivot doors link the kitchen, with an oak island bench and built‑in BBQ, to a sheltered alfresco with open fireplace. The main lounge and primary suite overlook the northern pool courtyard. Below, three bedrooms, a second lounge to the rear lawn, two bathrooms and a fitted laundry complete family amenity.

208 Bass Meadows Boulevard, St Andrews Beach

$2.9m-$3.1m

Liza Milchman, Milchman Real Estate

At 208 Bass Meadows Boulevard, St Andrews Beach, this two‑level, ocean‑facing home on 1549sqm offers broad coastal views about 200 metres from the shore. It has four bedrooms, including three in the main house and a downstairs bedroom with separate entrance, plus two bathrooms and three toilets. Living spaces connect to a tiered back deck and a heated 5x10m concrete pool. Comforts include reverse‑cycle heating and cooling, polished boards and a Coonara fireplace. There is substantial outdoor and under‑house storage. The property is being sold fully furnished, with sunset outlooks and the sound of the ocean a nightly feature.

61 Constantine Ave, St Andrews Beach

$3.7m-$3.9m

Liza Milchman, Milchman Real Estate

At 61 Constantine Avenue, St Andrews Beach, this coastal home frames ocean outlooks to Cape Schanck, Boag Rocks and Arthurs Seat. Across two levels are five bedrooms, four bathrooms and three living areas, with a main kitchen upstairs and a kitchenette downstairs. Integrated appliances, a games/gym or home office zone, a European laundry plus a separate laundry, and two heating units support easy living. Comforts include evaporative cooling, new double‑glazed Low‑E windows and two instantaneous hot water units. Front and rear balconies capture sunrise and sunset. The 1326sq m block rounds out a substantial beachside holding.

12 Keith St, Tootgarook

$1,025,000-$1,125,000

Sam Crowder 0403893724

Steps from the shore, this updated 1950s home at 12 Keith Street, Tootgarook sits about 150 metres from the beach on approximately 982sqm. Natural timber floors and soft coastal tones lead to a well‑appointed kitchen with stone benchtops, a dual integrated fridge/freezer and Westinghouse appliances. Three bedrooms are served by a bright central bathroom, with an outdoor hot/cold shower for post‑swim rinses. A separate rear studio suits guests, a creative workspace or a home office. Walk to The Kitchen in Tootgarook, with golf courses, hot thermal springs, St Andrews Beach Brewery and the Tootgarook Wetlands a short drive away.

629 Settlement Rd, Cowes

$1.0m-$1.1m

Michael McLeod, First National Phillip Island

At 629 Settlement Road, Cowes, this sustainably built home pairs north-facing living and foreshore outlooks with direct access to the Red Rocks nine‑hole golf course. High ceilings, warm timber flooring and an open‑plan hub connect to indoor – outdoor entertaining. Three bedrooms and two bathrooms include a versatile self‑contained wing with a kitchenette, suited to a parents’ retreat or guest stay. Hemp‑based handmade materials enhance insulation and comfort. A gentle foreshore walk leads to a protected north‑facing beach, with Red Rocks Beach close by. The sizeable allotment offers scope for extra garaging, boat or caravan storage.

4/2 The Esplanade, Ventnor

$1.85m

Greg Price, Alex Scott & Staff Cowes

At 4/2 The Esplanade, Ventnor, a Peter Crone‑designed, award‑recognised residence spans two levels with uninterrupted Western Port Bay views. Ground floor Tasmanian oak floors lead past three bedrooms and a central bathroom to a study and a master suite with walk‑in robe, ensuite and bay outlooks. Upstairs, a versatile fourth bedroom or second living opens to a private balcony. Full‑height glazing frames an open‑plan kitchen, dining and living domain that extends to a wide entertainer’s balcony. The kitchen features stone benchtops, Miele appliances and generous pantry storage. Rear lane access adds a double garage and boat/caravan parking.

32 Forrest Ave, Newhaven

$2m-$2.2m

Greg Price, Alex Scott and Staff

At 32 Forrest Avenue, Newhaven, a level front‑row allotment faces Western Port Bay and the marina. Open‑plan living draws the water outlook in via large bay windows, alongside a timber kitchen with marble benchtops. The main bedroom offers bay views, a walk‑in robe and ensuite, with three additional bedrooms including built‑ins, a second bathroom and a powder room. A study nook adjoins a games room as a third living zone, while a spa room opens to a light‑filled alfresco area. Secure entry from the main garage and a large shed/workshop add storage and utility.

48 Wareeny Rd, Walkerville South

$3.1m-$3.41m

Jason Hellyer, Ray White Rural

Cape House sits on 3.32ha with elevated views over Cape Liptrap National Park, Bass Strait and Morgans Beach at 48 Wareeny Road, Walkerville South. Designed by Hayne Wadley Architects, the main residence has three bedrooms, two bathrooms and open‑plan living with floor‑to‑ceiling glazing. A designer kitchen features an AEG oven, induction cooktop and Fisher & Paykel appliances. A self‑contained guest house adds a mezzanine, bathroom, kitchenette, private deck and outdoor hot tub. Infrastructure includes a 3‑vehicle carport, a shed with helicopter enclosure, six water tanks totalling about 117,500 litres, CFA‑compliant fittings, landscaped observation decks and direct beach access.

15-17 Toorak Ave, Loch Sport

$620,000

Renee Potts, CShells Real Estate

Set across two blocks on Lake Victoria, 15-17 Toorak Ave offers a waterfront home with upper‑level open‑plan living, repurposed floorboards and timber beams. The main bedroom and a second with built‑ins take in lake views; a renovated kitchen with gas cooking and dishwasher pairs with a bathroom featuring a walk‑in shower and separate toilet. Original wood heating and gas lights remain. A full‑width deck includes an undercover north‑facing section. Downstairs is self‑contained with open‑plan living, an oversized bedroom and a combined bathroom/laundry. A garage with 3‑metre clearance, wraparound driveway and rear carport suit boats, caravans and outdoor living.

73 McLachlan St, The Honeysuckles

$690,000

Mark Elliman, John Elliman Real Estate

Directly opposite Ninety Mile Beach, 73 McLachlan Street offers a distinctive two‑storey, boat‑inspired home. The ground level features open‑plan lounge and dining with reverse‑cycle split‑system, a north‑facing sunroom, a kitchen with butler’s pantry/laundry, two robed bedrooms, and a central bathroom with glass vanity, set on polished Victorian ash floors. Upstairs, the main bedroom includes a walk‑in robe, ensuite and a private balcony with foreshore views; new carpet was added in April 2024. Outside, an enclosed deck, carport, workshop, studio, storage shed, eight solar panels, water tanks and established gardens complete the block.

145 Seventh Ave, Paradise Beach

$980,000

Mark Elliman, John Elliman Real Estate

On a 2000sq m foreshore allotment at 145 Seventh Ave, Paradise Beach, this renovated coastal home backs directly onto Ninety Mile Beach. James Hardie cladding and double‑glazed windows anchor a light‑filled plan with floor‑to‑ceiling glazing, split‑system heating/cooling and a Coonara Settler C600. The kitchen features Smeg appliances and Italian Calacatta marble; bathrooms carry quality finishes. Three bedrooms include a main suite with a custom walk‑in wardrobe with a SkyVent and an ensuite with a picture window. Outside, timber decking and secure yards sit alongside an eight‑car garage, hoist‑ready slab and a separate third bathroom/laundry, plus a backup generator.