LGA · VIC · SOUTH-EAST BAYSIDE / LIFESTYLE

Mornington Peninsula Shire

Lifestyle peninsula with billions in transport + medical infrastructure delivering. Roughly 75km from Melbourne CBD.

South-East Bayside / Lifestyle Hotspotting refresh: Jun 2026 75km from CBD

Investment thesis

What this LGA is for

South-east bayside peninsula covering Mornington, Mount Eliza, Mount Martha, Rosebud, Rye, Sorrento, Portsea, Dromana, Hastings, Somerville, Capel Sound, Safety Beach, Blairgowrie, Flinders, Balnarring, Bittern, Crib Point, McCrae, Somers, Tootgarook, Tyabb, Baxter and Hastings. Gross Regional Product $12.045 billion. Unemployment 3.4% (Dec 2025, low). Construction + healthcare both 14% of total local workers. The structural anchor is the completed $1.1 billion Frankston Hospital redevelopment, the $130 million Peninsula Health expansion, and the Peninsula Link freeway (opened 2013). Historic lifestyle destination with the largest older-resident population in Victoria, now in transition to a more diverse demographic mix.

Key numbers

Snapshot of the Mornington Peninsula Shire economy and demographics.

Gross Regional Product

$12.045B

Unemployment (Dec 2025)

3.4%

Of workforce in construction (largest sector)

14%

FY2026 Council Capital Works

$51M

Infrastructure pipeline

The committed and in-flight infrastructure spend reshaping the LGA.

$1.1B

Frankston Hospital redevelopment

Completed. Servicing the growing peninsula population. Major employment + rental demand source.

$3B

Frankston train infrastructure (long-term)

Connectivity upgrades into the Frankston end of the peninsula.

$130M

Peninsula Health upgrade

Health-sector capacity expansion. Secondary employment anchor.

$51M

FY2026 Capital Works Program

Inside $326M FY2026 budget. Emil Madsen Reserve Pavilion ($8.375M), Peninsula Trail Baxter-Somerville ($2.45M), Sorrento netball courts ($1.287M).

Major

Peninsula Link freeway (opened 2013)

Materially improved connectivity to Melbourne. Triggered the post-2013 building activity wave including The Bays Hospital expansion.

Major

Telecommuter demographic shift

Post-pandemic structural shift toward Melbourne-commuter and telecommuter workers. Reshapes the rental demand profile.

Suburbs in scope

Suburbs we actively track within Mornington Peninsula Shire. House market data from PropTrack via Hotspotting LGA report (12 months trailing).

Suburb	Median (house)	Yield	1yr growth	Vacancy	Read
Portsea	$2.825M	2.40%	-16%	0.40%	LGA premium. Holiday-home market with low liquidity (33 sales/yr)
Flinders	$2.35M	1.80%	-12%	0.50%	Premium coastal village
Sorrento	$1.84M	2.60%	+1%	0.50%	Premium coastal. Family demographic
Mount Eliza	$1.70M	3.20%	+13%	0.60%	Strongest YoY growth (LGA top). Premium family suburb. 291 sales/yr
Balnarring	$1.60M	3.00%	+13%	0.70%	Strong YoY growth. 5-year avg +8%
Somers	$1.515M	2.90%	+11%	0.60%	Coastal village, strong YoY
Blairgowrie	$1.45M	3.10%	-7%	0.70%	Coastal premium, 120 sales/yr
Mount Martha	$1.45M	3.40%	+1%	0.60%	Premium family suburb. 349 sales/yr (deepest premium market)
McCrae	$1.23M	3.30%	-1%	0.70%	Coastal middle-tier
Mornington	$1.155M	3.40%	+6%	0.70%	LGA commercial heart. Most liquid market (396 sales/yr)
Safety Beach	$1.153M	3.40%	-2%	0.70%	Bayside middle-tier
Bittern	$1.09M	3.80%	0%	0.90%	Hinterland; 5-year avg +8%
Dromana	$985K	3.30%	+4%	0.80%	Bayside affordable middle-tier
Rye	$950K	3.70%	-2%	0.80%	Coastal middle-tier
Somerville	$910K	4.00%	+8%	0.90%	Family suburb, strong yield + growth
Tootgarook	$890K	4.10%	0%	0.80%	Coastal middle-tier, strong yield
Tyabb	$870K	4.00%	-12%	0.90%	Affordable village
Rosebud	$800K	3.90%	0%	0.80%	Coastal affordable. 348 sales/yr
Crib Point	$790K	4.20%	+7%	1.00%	Hinterland, strong yield + growth
Baxter	$778K	4.20%	-6%	0.90%	Hinterland affordable
Capel Sound	$752K	4.00%	+2%	0.80%	Bayside affordable
Hastings	$728K	4.30%	0%	1.00%	Most affordable LGA entry. Strongest yield set

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