Jensen said some buyers are happy to pay a premium for waterfront on the peninsula, and some buyers will only consider homes with water views.
“A lot of people come up to me and say if I don’t buy a house with a certain view, I won’t buy it,” Jensen said.
Desirable bayside suburbs attract wallet-savvy buyers to shell out millions more for a waterfront home in neighborhoods like Black Rock and Brighton.
Jenny Dwyer, principal agent at Belle Property Sandringham, says waterfront properties can fetch 30 per cent or 40 per cent more than those on a few streets without views.
“Homes on Beech Road in Hampton, Sandringham, Parkdale and Menton, with very, very good views, buyers will pay more than 20 per cent more,” she said.
A four-bedroom beachfront property, Black Rock, recently sold for $6 million, while another four-bedroom on Ardoyne Street, Black Rock, sold for $4.125 million.
Marshall White Stonington director and auctioneer John Bongiorno said even land values were more valuable along the coast, particularly along Brighton’s ‘Golden Mile’.
Last year, beachfront land in Seacombe Grove, Brighton, owned by Patricia Ilhan, widow of Mad John founder John Ilhan, sold for more than $20 million.
A block of land farther from the beach on Lynch Crescent traded for $3.82 million, fetching just a fifth of its asking price.
“There are different levels — you have the beach front, across the street from the beach and two blocks away,” Bongiorno said. “The beach always costs more.”
In Melbourne’s West, Williamstown Beach has buyers willing to pay a premium for waterfront property in both The Strand and Williamstown Beach.
Jellis Craig Inner West partner and auctioneer Leigh Melbourne said: “You have to be on the waterfront to have a view to the west.
A home on The Strand, with waterfront views, went off the market in November of last year for $7.35 million, records show, while a similar home on Electra Street, farther from the water, went for $3.05 million.
“There’s a huge difference,” Melbourne said.
Buyers often search for several years to find their perfect property, while a buyer may search for three years.
“Someone wanted to shop on The Strand. “He wanted something that could be torn down — a brick layer, not an artifact — so he could tear it down,” Melbourne said.
These buyers can pay as much as $5 million for a property before paying more for a rebuild.
“It could be a $12 million investment in the house,” he said.