Hi,
I stayed down in Mount Martha. There is a nice clothes optional beach just between Mount Martha and Mornington I think its called Sunnyside north. Of course you have to go to Sorrento and Aurthurs Seat is a good hike.
Check out the Red Hill area for good food and wine. Sorrento is a must-do and Peninsula Hot Springs is great if you want some time to relax.
I highly recommend Driftwood Beach Cottage for a cute holiday rental, however the prices may be a little high over that Dec-Jan peak season. Enjoy!
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