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They’re bright, bold and an elusive status symbol — but are Victoria’s beach boxes worth their skyrocketing price tags?
Scoring a Victorian beach box might seem like hitting the coastal jackpot, but beneath the pastel paint exteriors, experts suggest the investment might not be worth the picture-perfect views you’re paying for them.
With nearly 2,000 beach boxes dotting the state’s shores, with around 1,000 of these on the Mornington Peninsula alone, in hotspots such as Mount Martha, Rosebud, and Mount Eliza, according to Marine and Coasts Victoria
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But as house prices dip and investors retreat, property pundits have debated whether these colourful status symbols are a dream buy — or just a vanity splurge.
In Blairgowrie, Boatshed 13 sold for $900,000 in February 2024, and more than double its $425,000 reserve.
In Mount Martha, a beach box at 4 South Beach, fetched a record $650,000 in 2021, while a listing in Portsea is asking between $910,000 and $1m — higher than Melbourne’s December 2024 median house price of $780,000.
Boat shed 23 at Shelly Beach, Portsea, sold for about $950,000 in 2024.
Warimont Nutt Mount Martha’s Tammie Coadie said beach boxes might be a good investment as they tended to increase in value over time but shared her caution over purchasing them.
“They’re not the kind of investment you’d use to leverage or build wealth — they’re more personal and lifestyle-driven” Ms Coadie said.
“My family had one when I was a child, and while it’s worth significantly more now – I’d probably choose a boat to invest in, a boat’s movable a beach box isn’t.”
Warimont Nutt Mount Martha’s Tammie Coadie said beach boxes weren’t the kind of investment purchased would use to leverage or build wealth.
Annual license fees for Mornington Peninsula beach boxes range from $855 to $1,100, depending on size, and sellers are hit with transfer fees of 6.5 per cent of the box’s capital value or $3,830 — whichever is greater.
Owners also face strict heritage restrictions, particularly in Brighton, where the structures’ historical significance means alterations are heavily regulated.
Melbourne buyers advocate Cate Bakos dubbed purchasing a beach box ‘illogical’.
Prominent Melbourne buyers agent Cate Bakos said beach boxes were an “illogical purchase”.
“Buying a beach box is, quite frankly, an illogical purchase,” Ms Bakos said.
“You’re essentially paying for a license to use it, not the land it’s on – they’re not insurable, and you can’t even rent them out for income.
“It’s entirely cash out with no financial return, from an investment perspective, it’s an absolute no-go.”
For buyers dreaming of a budget waterfront lifestyle Ms Bakos shared her advice on their viability.
“You think it’s Instagram-worthy, but it’s just a glorified shed,” she said.
“If they considered the tax implications, maintenance costs, and limited use, they’d think twice.
“A modest coastal home would be a better investment any day.”
Barry Plant Rosebud’s Thomas Solunto said the beach boxes remained highly coveted and dubbed them a ‘prestigious luxury asset’.
Despite the critics, beach boxes remain highly coveted – Barry Plant Rosebud’s Thomas Solunto said there was still a great deal of appeal for cashed-up buyers.
“Yes, Beach boxes are storage spaces for summer and in winter, the market disappears,” Ms Solunto said.
“They hold emotional value, but some are worth more than houses in nearby towns – that’s not practical; it’s a prestigious luxury asset.”
Ms Bakos said not even an ‘Instagram-worthy’ view could justify the value of a ‘glorified shed’.
Mr Solunto said the location of the beach box made a difference for the overall growth of the asset.
“If it’s right on the beach with uninterrupted views, it’s much more desirable and likely to sell quickly,” he said.
“But if it’s set further back in the bush, demand tends to be lower.”
In 2021, 4 South Beach, Mt Martha fetched a then record for a beach box in the suburb – an eye-watering $650,000 amid the global pandemic.
However, there are risks, Ms Coadie pointed out the challenges of owning a beach box.
“It’s important to understand the limitations of owning a beach box,” she said.
“You can’t protect the structure itself, and while you’re allowed to rebuild what was there, you can’t change the design.
“And the license can be revoked at any time — it’s a bit of a gamble.”
PropTrack house prices on the Mornington Peninsula in December 2024 were down 3.9 per cent in the past year. Picture: iStock
House prices on the Mornington Peninsula in December 2024 were down 3.9 per cent in the past year according to PropTrack, and while property experts like Mr Soluto believed the emotional connection and lifestyle benefits justify the price, Ms Bakos argued the allure is misplaced.
“Beach boxes are about emotional appeal, not economic logic,” she said.
“If someone’s heart is set on owning one, I’d urge them to take a step back and assess whether their money could be better spent on something with long-term value.
“Are they worth the splurge, or are they just a luxury you can’t afford to sink into?.”
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