Eyewatering price of humble Aussie beach shed

Iconic Victorian beach shed for sale Tipped to sell for about $500,000 READ MORE: The 10 suburbs you need to know if you're buying a home in 2024

A beachside shack is tipped to sell for up to $500,000 – in the latest example of Australia’s sky-high property prices.

‘Boathouse 26’ sits on the McCrae foreshore on the Mornington Peninsula, south of Melbourne. It is set to go to auction on January 27.

If it sold for at the upper range of the buyer’s guide – $470,000 – a successful bidder would be spending more than $20,000 per square metre.

While the price may keep some hopeful owners away, the shed is one of the most sought after of the about 2,000 available in Victoria.

It is also significantly cheaper than others that have sold in recent years after a slightly larger shed in Portsea was sold for just under $1million.

One of Victoria’s iconic waterfront boatsheds is set to go to auction with potential buyers expected to spend about $500,000

The shed is the most striking in the area, with pink stripes, a light blur roof and a chartreuse interior.

The shed has been owned by the same family for the past 50 years and is now available as an ‘amazing opportunity for a new family’.

‘With gleaming white sand and glistening turquoise water ahead of you, this stunning and peaceful location is also very convenient,’ the listing reads.

‘As well as having a patrolled beach, just a few moments away you’ll find parking, playground, a toilet block, and pedestrian crossing to several cafés and restaurants.’

The shed’s west-facing location will let its new occupants watch a sunset over the water.

Any prospective buyer wont own the land underneath the shed – simply a license to use it.

A successful buyer would be paying over $20,000 per sqm for the convenience and prestige of owning one of the state’s about 2000 boathouses (pictured)

The unique purchase agreement is due to the shed being built on coastal Crown land.

‘Purchasing a boatshed or bathing box from someone else therefore means you are purchasing the rights to occupy the site subject to the same conditions as the previous licensee,’ the Mornington Peninsula Shire Council boatshed fact file reads.

The license restricts owners from using the shed for either commercial or residential purposes and prohibits kitchens or bathrooms being added.

The council also requires a licensee pay yearly fees and to keep the shed in a condition ‘to the satisfaction to the committee of management’.

Breaking the terms and conditions of the licence agreement could result in it being revoked and the shed would once again become vacant.