Mornington Peninsula vs Yarra Valley vs Ovens Valley – Where Is the Best Place to Buy Property?

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Comparing Victoria’s Top Regional Markets: Mornington Peninsula, Yarra Valley, and Ovens Valley

Where Should You Buy Property in 2025?

The regional property landscape in Victoria continues to evolve in response to lifestyle migration, infrastructure upgrades, and a renewed appreciation for green space. Among the most popular regional destinations for both investors and owner-occupiers are the Mornington Peninsula, the Yarra Valley, and the Ovens Valley.

Each of these areas offers a distinct character, lifestyle, and investment profile. In this article, we compare these three major regions in terms of price, value for money, growth potential, and long-term considerations under the lens of over 25 years’ conveyancing experience.

Mornington Peninsula – Coastal Prestige Meets Urban Convenience

The Mornington Peninsula remains one of Victoria’s most desirable lifestyle markets.

Key Metrics:

  • Median house prices range from $760,000 in Rosebud to $3.68 million in Portsea.

  • Popular suburbs such as Mornington and Mount Martha sit at $1.1–$1.5 million.

  • High buyer demand, particularly among downsizers and second-home purchasers from metropolitan Melbourne.

  • Coastal amenity and proximity to Melbourne (just over 1 hour) add to its long-term appeal.

While capital gains have stabilised following the post-COVID surge, the Peninsula continues to draw high-income buyers seeking quality schools, vineyards, and beach access. Rental yields tend to be low, often around 2.5% to 3%, reflecting high capital values.

Pros:

  • High capital growth suburbs

  • Strong infrastructure and tourism demand

  • Premium lifestyle appeal

Cons:

  • Entry price is relatively high

  • Growth may taper in the short term

  • Land tax and short-stay levies impact investment returns

Yarra Valley – A Green Belt with Rising Momentum

Known for its wineries and hills, the Yarra Valley is increasingly attractive to buyers priced out of outer Melbourne.

Key Metrics:

  • Median house prices range from $700,000 in Yarra Junction to $1.5 million in North Warrandyte.

  • Yarra Glen recorded an 18.7% growth rate last year, with a current median of $937,500.

  • Affordable options remain in Launching Place and Warburton, yet growth corridors are appearing in Wandin and Seville.

The region combines country lifestyle with manageable commuting distance to Melbourne’s eastern suburbs. With ongoing residential rezoning and road infrastructure improvements, the Yarra Valley is no longer solely a weekend destination—it is becoming a full-time living destination.

Pros:

  • Moderate entry costs with growth upside

  • Access to Melbourne’s employment belt

  • Expanding residential infrastructure

Cons:

  • Limited town water and sewer in some areas

  • Bushfire risk in high-slope zones

  • Public transport still limited in outer edges

Ovens Valley – Underrated, Affordable, and Scenic

Stretching from Myrtleford to Bright and Beechworth, the Ovens Valley remains one of Victoria’s most scenic and affordable property markets.

Key Metrics:

  • Homes in Myrtleford and Ovens regularly sell for $350,000 to $550,000.

  • Premium lifestyle properties (e.g., acreage or vineyard estates) exceed $1 million.

  • Bright and Beechworth attract retirees and lifestyle buyers, but average time on market can exceed 60–100 days, indicating slower turnover.

While it lacks the proximity to Melbourne, the Ovens Valley offers unmatched natural beauty and affordability. For buyers seeking a “tree change” or a holiday investment, this region may offer the best value per dollar.

Pros:

  • Highly affordable market entry

  • Scenic surrounds and tourism pull

  • Suits retirees and long-term investors

Cons:

  • Low liquidity in the market

  • Services and healthcare infrastructure limited outside Bright and Beechworth

  • Not ideal for buyers needing proximity to Melbourne or major employment zones

So, Where Is the Best Place to Buy?

It depends on your profile:

🏡 Owner-Occupier (Lifestyle Buyer)

  • Best pick: Yarra Valley – Balances rural charm with proximity to Melbourne.

  • Runner-up: Mornington Peninsula – Premium, but comes at a cost.

💼 Investor (Capital Growth)

  • Best pick: Mornington Peninsula – Long-term capital appreciation, especially in areas like Mornington and Mount Eliza.

  • Runner-up: Yarra Valley – Emerging growth in areas like Yarra Glen.

💸 First Home Buyer / Budget-Conscious

  • Best pick: Ovens Valley – Entry-level prices under $400,000 are still achievable.

  • Runner-up: Outer Yarra Valley towns such as Yarra Junction or Warburton.

Final Advice from a Conveyancer’s Desk

Before purchasing in any of these regions, it is crucial to:

  • Undertake full due diligence on bushfire overlays, zoning, and infrastructure services;

  • Consider the practical limitations of lifestyle areas, particularly transport and healthcare;

  • Avoid assumptions based on tourism appeal—some regions may not provide strong resale value or consistent tenancy demand.

As always, my advice is practical and grounded in real property law and transactional experience—not theoretical market forecasts.

For assistance in securing property in any of these regions, or to discuss title risks, off-the-plan purchases, or caveat protections, please contact me directly.

Kind regards,
David Dawn
Licensed Conveyancer
Victorian Property Settlements
Post Office Box 11220 Frankston Victoria 3199
Email: david@quick32.com