26 Beach Road, Mollymook Beach sale price sets a suburb record after selling in May

The three-bedroom property at 26 Beach Road sold for $4.75 million in May, beating the previous suburb record by more than $300,000.

Built in the mid-1970s, the "retro weekender" went to auction in late April with price expectations in the $5 million range. It was passed in at auction before the home sold privately on May 5.

The previous price record was set in 2021 when 26 Mitchell Parade, Mollymook Beach sold for $4,425,000.

In neighbouring Mollymook, the record $10 million sale of 15 Shipton Crescent continues to be the talk of the town.

Selling agent Ben Pryde, principal at Raine and Horne Mollymook/Milton, said the sale marked the "tail end" of the record property prices that became the norm in 2021.

"A unique location like that is always going to get a premium figure," he said.

He said the buyers intended to redevelop the site.

"At some point in time the new owners will redevelop the site and I guess you can't really go wrong when you've got such expansive views and close proximity to the beach," he said.

"I'm sure they'll do well out of it long term."

The sale marks the first time the property has changed hands since its original owners bought the 759-square-metre block in 1968 for $5000.

Still in original condition, the two-storey house has been used as a family holiday home over the past five decades.

It features three bedrooms, two bathrooms and two living areas, with verandahs at the front and the rear.

The last time a home on the tightly held Beach Road changed hands was in 2018 when a five-bedroom house at No. 16 sold for $1,875,000.

Prices in Mollymook Beach have risen 67 per cent in the 12 months to April 2022.

The median price for a house in the suburb was $1.32 million, up from $790,000 the year prior.

Mr Pryde said the market had softened in the months since.

"There is still activity there but it's nowhere near the extreme sort of nature it was previously," he said.

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"Rather than dealing with five or six buyers on a property, we're now dealing with one, two or three if we're lucky."

Buyers will notice price guides appearing on South Coast listings, as conditions move further away from a sellers' market, Mr Pryde said.

"More properties are now hitting the market with an actual price or a price guide rather than doing an expressions of interest, price by negotiation or auction campaign," he said.

"When there's less activity out there, it's probably a little bit easier to figure out the price. Whereas back in the peak of the boom, it was very difficult to establish what the true value [of a property] was without actually testing the market by using either auction or price by negotiation."