VIC Frankston 2019

Discussion in 'Where to Buy' started by whitewash, 5th Jan, 2019.

Join Australia's most dynamic and respected property investment community
Tags:
  1. whitewash

    whitewash New Member

    Joined:
    11th Sep, 2018
    Posts:
    1
    Location:
    Melbourne
    First-home and outside buyers to lift Frankston market

    First-home and out-of-area buyers are expected to keep the Frankston market ticking over in the new year. Buyer inquiries and listing numbers were strong towards the end of last year and should augur well for the area in 2019, OBrien Frankston director Andrew Milne said.
    First-home and outside buyers to lift Frankston market - realestate.com.au

    Projects supported by the committee for greater Frankston
    C4GF in 2018 – the year in review - Committee for Greater Frankston

    Highest proportion of resales for gain in Melbourne
    Frankston: 100% of sales made gains, $243,000 median profit, $112.23m total value of profit
    Melbourne’s bulletproof property markets revealed by new report - realestate.com.au
     
  2. WattleIdo

    WattleIdo midas touch

    Joined:
    18th Jun, 2015
    Posts:
    3,046
    Location:
    Riverina NSW
    Great article.
    So much infrastucture and so many upgrades lately and it all seems to be snowballing. I hope this rail extension goes ahead soon. Seems all are in favour.
    The area is currently holding up well - just enough of a discount to allow late-comers in before the stigma is completely gone and the gates close for good (investors need not apply).

    Fantastic news!
     
  3. Ian87

    Ian87 Well-Known Member

    Joined:
    23rd Sep, 2016
    Posts:
    104
    Location:
    Melbourne
    I follow Frankston really closely as I own there and actually think prices came off quite a bit at the tail end of last year. Probably all good long term but I definitely seen a price dip similar to everywhere else in Melb in the last half of 2018.
     
    Nismik likes this.
  4. WattleIdo

    WattleIdo midas touch

    Joined:
    18th Jun, 2015
    Posts:
    3,046
    Location:
    Riverina NSW
    and ...?
     
  5. Yinka Dare

    Yinka Dare Well-Known Member

    Joined:
    8th Jan, 2016
    Posts:
    76
    Location:
    Victoria
    Frankston was hot about a year ago but it has definitely got a lot quieter now. Prices would have dropped a bit but still got many first home buyers looking there and in surrounding areas.
     
  6. EK01

    EK01 Member

    Joined:
    21st Jun, 2015
    Posts:
    21
    Location:
    Brisbane
    I went to school with Andrew Milne (FHS 1980’s). Nice guy ( lousy backhand but a good serve and forehand ) and a RE agent I’d gladly recommend for those buying or selling in the area.

    Reading the linked article not sure I’d be trusting his economic forecasting ability though......
     
  7. Yinka Dare

    Yinka Dare Well-Known Member

    Joined:
    8th Jan, 2016
    Posts:
    76
    Location:
    Victoria
     
  8. Yinka Dare

    Yinka Dare Well-Known Member

    Joined:
    8th Jan, 2016
    Posts:
    76
    Location:
    Victoria
    Pretty sure his daughter is a real estate agent too
     
    sauber likes this.
  9. johnmteliza

    johnmteliza Well-Known Member

    Joined:
    28th Aug, 2018
    Posts:
    309
    Location:
    Mornington VIC
    The inner city suburbs have dipped by 10% or so. Frankston is completely different having had a stable year in 2018 with no decline. I agree it is good long term being so undervalued. Frankston has even been named a top pick by Hotspotting for being one of the most consistent markets for growth.

    Frankston is also set for more development and a building boom in the CBD.
    Here are many of the projects underway or coming in the near future:
    Forum topic: Frankston Developments

    This is as well as other projects included on urban.com.au's database.

    Melbourne in 2026: Frankston and Dandenong property will be in demand

    5 suburbs in the Frankston municipality are believed to have had defied cooling market conditions to record double-digit price growth in the past year.
     
    Last edited: 9th Jan, 2019
  10. johnmteliza

    johnmteliza Well-Known Member

    Joined:
    28th Aug, 2018
    Posts:
    309
    Location:
    Mornington VIC
    There is still strong demand with houses in Frankston and Frankston North only being listed for 23-26 days on the market. Frankston and Frankston North were two of the top 10 suburbs selling the fastest in Melbourne. If anything the market has become more active and busy with Frankston being the 5th top selling suburb in Melbourne in 2018.

    Frankston house price growth is lower than the record 27.4% experienced in 2017 but there is still growth.

    Investors as well as FHBs also find the area desirable due to the City of Frankston being the most popular rental area in Melbourne.
     
    Last edited: 9th Jan, 2019
  11. johnmteliza

    johnmteliza Well-Known Member

    Joined:
    28th Aug, 2018
    Posts:
    309
    Location:
    Mornington VIC
    The Labor Frankston line extension business case will be completed early this year so plans are likely to come soon!
     
    WattleIdo likes this.
  12. Ian87

    Ian87 Well-Known Member

    Joined:
    23rd Sep, 2016
    Posts:
    104
    Location:
    Melbourne
  13. KittyK

    KittyK Member

    Joined:
    29th May, 2017
    Posts:
    9
    Location:
    Melbourne
    Ronald86 likes this.
  14. Ronald86

    Ronald86 Well-Known Member

    Joined:
    15th Jan, 2018
    Posts:
    52
    Location:
    Melbourne
    Surely a typo unless something we don't know
     
  15. johnmteliza

    johnmteliza Well-Known Member

    Joined:
    28th Aug, 2018
    Posts:
    309
    Location:
    Mornington VIC
    Frankston is set for continued growth with the past few years performing strong. Frankston experience a 19.5% growth rate between July 2016 to July 2017. Frankston unit prices also increased by 16.3% in the 2017-18 financial year. Frankston also had the highest land value increase in Melbourne in 2018 with a 42% growth in land prices.

    Overall Frankston in 2017 saw an influx of out-of-area buyers, a sharp fall in listings, rising auction sales and shorter days on market. This caused high property price growth. The lack of supply of listings also continued in 2018 making the market still competitive. Also, buyer demand continued to be equally strong in 2018 as it was in 2017. In 2018 Frankston also had a strong rental market with very few listings which attracted many investors to the area.

    Several homes sold after just one inspection in early 2018 and 18 Margate Ave, Frankston received 16 offers. Early 2018 proved to be a peak selling season with low supply and high demand.

    NAB’s Residential Property Survey also picked Frankston in 2017 and 2018 to be a property hotspot with above average property price growth. In 2018 91% of Frankston properties sold above their listed price to be the 2nd best performing suburb in Melbourne. This was followed by nearby Langwarrin at 83% and Mornington at 78% also on the top 8 suburbs list. Over the June quarter of 2018 Frankston was 1 of 3 suburbs to record no losses from resales which shows the strength of the market.

    Frankston has also been a very active market in 2018 with a total of 894 sales for the year.
    Frankston also had a strong 70% clearance rate in late 2018 compared to the broader Melbourne market.

    Frankston High School was also ranked in top 90 schools in Melbourne in 2018 which has made the school zoned areas and specifically Frankston South more popular.

    'Affordable prices and a wide choice of homes has helped the Frankston region withstand the full impact of a softening market in 2018. Agents noted Frankston suburbs still attract many homebuyers, investors and developers from outside and within the area.'

    'The top end of the Frankston market was also set to perform well with demand still strong and supply limited in spring of 2018. Agents said quality listings above $800,000 to those seeking seven-figure sales should continue to perform well. “We expect some properties to do really well and these are in blue-chip locations in Frankston South and which are tightly held and attract buyers,” Ray White Frankston director Ashley Weston said.'

    Frankston is also attracting Melbourne buyers to the top end of the market with a beachfront property held on for 112 years selling above $2 million in late 2017. A a 1920s house at 10-12 Somme Ave, Frankston, sold for an impressive $3.4 million in December of 2017 showing demand in the premium segment. 6 Yamala Drive in Frankston South also took just 10 days to sell for $4.35 million in the desirable Olivers Hill area.

    Luxury homes continued to be popular in 2018 with a variety of successful sales in the $1.3m - $2m price bracket in Frankston South. Frankston South boasts some award winning designed homes. Frankston South and specifically Olivers Hill has become more popular being the gateway to the Mornington Peninsula and enjoying the halo effect of Mount Eliza.

    The area is also expected to become more accessible and connected to Melbourne with the new Mordialloc Freeway set to reduce the commute to the area by 10-15mins. The proposed Frankston Flyer including construction of a third track between Frankston and Moorabbin to create express services along the Frankston line will also improve the commute.

    Strong population growth is projected to see Frankston have almost the same size population as Hobart today in 2035.

    In the shorter term, Frankston will experience strong economic growth and employment with the biggest suburban hospital rebuild in Victoria’s history starting next year with a 11-storey tower in Frankston Hospital at a cost of $562 million. This will provide 1000 jobs during construction and over 500 long-term local jobs for doctors, nurses, allied health professionals.

    The new health and education precinct will also see the Chisholm Tafe development finished soon as well as the Monash Peninsula’s six-storey 150-room student accommodation building scheduled to open in the next few months. Monash Peninsula's Rehabilitation, Aging and Independent Living Centre will also open in 2019.
     
    Last edited: 16th Jan, 2019
  16. johnmteliza

    johnmteliza Well-Known Member

    Joined:
    28th Aug, 2018
    Posts:
    309
    Location:
    Mornington VIC
  17. johnmteliza

    johnmteliza Well-Known Member

    Joined:
    28th Aug, 2018
    Posts:
    309
    Location:
    Mornington VIC
    Frankston and Frankston South have also maintained a consistent 70% auction clearance rate for the whole of 2018.
     
  18. werdna

    werdna Well-Known Member

    Joined:
    6th Jun, 2017
    Posts:
    106
    Location:
    Melbourne
    Sounds really promising. Thanks for the updates @johnmteliza
     
    johnmteliza likes this.
  19. johnmteliza

    johnmteliza Well-Known Member

    Joined:
    28th Aug, 2018
    Posts:
    309
    Location:
    Mornington VIC
    Frankston South and Frankston also have good DSR scores for property investment.
     
  20. johnmteliza

    johnmteliza Well-Known Member

    Joined:
    28th Aug, 2018
    Posts:
    309
    Location:
    Mornington VIC
    Frankston had the highest unit price growth in 2018 (+11.9% to a median price of $445,000) in Melbourne. Nearby Mt Martha also gained the title of top house price growth in 2018 (+12.3% to $1,100,500).

    Melbourne’s price growth stars revealed