Dreaming of a coastal Victorian retreat but think it’s out of reach? Think again. While some luxury holiday homes in Victoria fetch tens of millions, there are hidden gems along the coast that won’t break the bank—if you know where to look. Sure, you might not get waterfront views or a freshly renovated space, but you can still snag a slice of coastal paradise for under $1 million, $850,000, or even $700,000. And this is the part most people miss: these spots offer a laid-back lifestyle and endless beach days without the sky-high price tag.
Take Sorrento, for example, the priciest coastal pocket in Victoria, where a clifftop mansion sold for a staggering $30 million in 2021. But here’s where it gets controversial: just a stone’s throw away in Dromana, the median house price sits at a far more approachable $950,000. Elke Remscheid, a selling agent with YPA Dromana, notes that while many buyers on the peninsula are hunting for holiday homes, the $1 million price bracket also attracts those seeking permanent residences. But is this market truly stabilizing, or are rising interest rates and land tax hikes still looming threats? Remscheid hopes for stability, but the question remains—what’s next for coastal property?
One upcoming listing in Dromana, a three-bedroom home priced between $895,000 and $980,000, tells a story of its own. It’s a deceased estate once owned by Peter Brake’s parents, who bought it in 1981 for just over $130,000. Brake recalls, ‘My parents loved the area… it was what they wanted.’ Their story highlights the timeless appeal of coastal living, but Remscheid warns that finding a property with great bay views, a solid block of land, and renovation potential under $1 million is increasingly rare.
Looking for more options? Rye and Tootgarook offer median house prices of $940,000 and $880,000, respectively. Across the bay on the Bellarine Peninsula, Ocean Grove stands out with a median price of $950,000. Brock Grainger of RT Edgar Bellarine points out, ‘It’s a beach town with plenty of opportunities to enter the market.’ But here’s the kicker: areas like Point Lonsdale and Barwon Heads, once considered out of reach for $1 million, now have occasional opportunities. Is this a fleeting trend, or the new normal?
For buyers with budgets under $850,000, St Leonards ($705,000 median) and Portarlington ($847,500 median) are worth exploring. Head east of Melbourne, and you’ll find Inverloch, where the median house price is $845,000. Fiona McMahon-Hughes of Ray White Inverloch notes a unique trend: buyers seeking work-from-home setups by the coast, pre-retirees splitting time between Melbourne and the beach, and locals looking to settle. ‘It’s a really unique coastal town with a great community,’ she says. On a $1 million budget, a four-bedroom family home is well within reach.
And for those with budgets under $700,000? Clifton Springs on the Bellarine Peninsula offers a typical house price of $660,000. Venture further west to Warrnambool ($600,000) or Portland ($415,000), or east to Venus Bay ($507,500), and you’ll find even more affordable options. But the big question remains: with rising costs and shifting market dynamics, are these coastal havens still a smart investment, or just a fleeting dream? What do you think? Let us know in the comments!
