Coastal lifestyle continues to drive demand in postcode 3228

THE postcode 3228 property market continued to show resilience throughout the second quarter of 2026, with sales activity increasing across Torquay, Jan Juc and the wider Surf Coast despite a more cautious economic backdrop.

Between April and June, 125 properties changed hands in Torquay and Jan Juc, up from 95 sales in the previous quarter, indicating that demand remains for the Surf Coast lifestyle.

But today’s buyers are approaching their purchasing decisions with caution. They are taking more time, completing extensive research, comparing properties closely and placing greater emphasis on value than we’ve seen over recent years.

A significant influence on market sentiment this quarter has again been interest rates.

The RBA increased the official cash rate by 0.75 per cent across February, March and May before holding rates steady in June to assess the impact on inflation and household spending.

Combined with affordability pressures and changes announced in the May federal budget, these factors have contributed to a more measured and price-sensitive buyer.

While Melbourne experienced softer conditions and lower auction results, regions like the Surf Coast have continued to demonstrate resilience, supported by the appeal of the coastal lifestyle.

The April–June quarter also saw 159 new properties come to market across 3228, giving buyers greater choice.

Despite this increased supply, property values remained stable, with the median sale price rising to $1,162,500, up from $1,040,000 in Q1.

The highest recorded sale reached $4,620,000.

While the average time on market was around 62 days for our agency (below the market median of 94 days) this should not be interpreted as a lack of demand.

Instead, it reflects buyers taking longer to make informed decisions.

Homes that are presented well, strategically priced and marketed effectively continue to attract strong competition, while properties priced above market expectations are generally taking longer to sell.

Interestingly, our own experience at Natural Real Estate reflects this trend.

Throughout 2026, we’ve sold a property on average every three days, with around 47 per cent of our sales attracting multiple offers.

This reinforces that quality homes, when positioned correctly, continue to generate genuine buyer competition despite the more considered market conditions.

The rental market has mirrored the sales market throughout the first half of 2026.

Demand remains strong, reflecting the continued appeal of Torquay and Jan Juc as places where people and families want to live.

Through the Natural Real Estate office, more than 1,232 tenant inquiries were received, with 42 properties leased in Torquay and nine in Jan Juc.

While typical of the winter months, inquiry levels are lighter and leasing campaigns are taking a little longer.

Like sales, well-presented properties that are priced in line with market expectations continue to lease well.

Looking ahead, interest rate movements and the wider economy may continue to influence buyer confidence.

But the fundamentals of the 3228 market remain positive.

For buyers, there is greater choice and more time to make informed decisions.

For sellers, success is increasingly linked to realistic pricing, quality presentation and a strategy that matches today’s market.

While the pace has changed, well-positioned homes are still achieving positive results.

For tailored advice on how these conditions relate to your property or plans for the year ahead, feel free to get in touch on 0439 213 277.

Data source: realestate.com.au & CoreLogic.

KELLIE PAPWORTH

Senior sales consultant,

Natural Real Estate

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