Overview

• Some brightly painted sheds now fetch more than the mean Melbourne dwelling price of about AU$803,194, despite lacking bedrooms, bathrooms, water and power.
• Because the structures sit on public beaches without land title, buyers face tight rules requiring local homeownership, banning rentals or commercial use, forbidding overnight stays and prohibiting solar panels and motorised generators.
• Banks generally refuse to lend against beach boxes, so transactions are typically completed by cash buyers.
• Recent benchmarks include a record AU$1.2 million sale in Portsea last year and an AU$1 million sale at Mount Martha in April after a two-hour auction, with agents citing scarcity and prime locations as price drivers.
• Rooted in 1860s modesty laws, about 2,000 boxes remain around Melbourne, many kept in families, with owners paying annual licence fees, local rates and substantial public liability insurance.