VIC Frankston 2021

Beachside Frankston seems to be going a lot more upmarket given some of the sales and new listings - This 800 sqm 6 bedroom house has some great views and the ask is $4m! I doubt it will fetch the full ask but 12 months ago, even listing a single dwelling with $4m ask in Frankston would be unthinkable.

https://www.realestate.com.au/property-house-vic-frankston-134982722

2 and 3 bedroom apartments again with bay views in a new development with $1.5m - $1.85m ask (if sold) would set new record.

https://www.realestate.com.au/project/horizon-apartments-frankston-600030442

In 12 months the Frankston median has crept up 8% from $574k in Dec 19 to $618k now - most of those gains came in the last quarter but the results are reported on a rolling 12 months so I expect the quarterly gain for last quarter to be >5%.

 

I tracked Frankston's median for dec quarter for houses and units through tallying all data for individual sales. This will get reported in 2 weeks in the press.

The sep-dec period has the most sales ever in any quarter - 262 reported sales Vs 120 sales on-average each quarter - so the sales activity increased by a factor of 2.2.

The dec quarter median is $634k for houses (154 sales) and $465k for units (73 sold). This does not include 23 'undisclosed value' for houses and 12 undisclosed for units. Given the undisclosed generally represents higher-quality stock, I would be confident to say that the actual median will be marginally higher when accounted for those.

Whilst the rolling 12 months median stands at $618k (highest-ever and a nudge higher than the 2017 peak) for the CY 2020, the quarter before dec was sitting way below $600k, therefore we have on an annualised basis, a growth rate of over 15% for houses for the suburb, if the dec quarter growth carries into the Mar quarter this year.

The units' median however increased by over 20% and this is where I expect Frankston unit prices to be in the 'Top 10 highest growth for suburbs for Dec' quarter 'when it is reported in 2 weeks in the press!

(Just tried adding the associated excel file, however cannot find the option - can we attach an excel file to a post?)

 

https://m.realestate.com.au/property-house-vic-frankston-135301550

Looks like the market has really picked up behind my back....

 

130 Skye rd just sold for street record price $810k
166 McMahon's Rd sold for 707k

2 massive sales for area.

It's hot around here now. Sellers market

 

Hi All,
I have just started looking around for an IP and i'm interested in these two suburbs at the moment
- Epping
- Frankston (especially Frankston South)
Looking to spend between $500 - $600k.
Any ideas of the capital growth(Harris has already provided some good info above regarding Frankston) in this areas. But how about the rental market?

 

You are unlikely to find anything for $600k in Frank South - not even a decent town house.

Your best bet is to get something with significant land component (600k sqm) in Frankston (Karingal or surrounds) so you have the opportunity to sub divide in the future. There are a few listings at c$580k or thereabouts in Frank which gets you there and likely rental to be around $400-$450pw so around 4% yield.

Frank is on a roll mainly because nearby Mornington / bayside has had massive growth c20% over the past 12 months and median nearing $1m and FHB desiring of beach/ bayside are firmly in control buying houses/ TH with land component. Rental market is super strong with below 1% vacancy rate - last time it was that low was in 2010 briefly.

 

Correct.
I had my house rented out in 5 days!!!! its insane out there, i asked for420pw and all the agents laughed at me going nah you wont get that. then i had another and said hah! is that all??? i'll get you 440 easy! and sure enough she did! STOKED! and plus they want to stay there until they retire. plus im now positively geared on the property which is even better means i don't pay any cash to the property and I'm now living comfortably.

 

best bet is karingal id say atm or even out towards lindrum rd way frankston that sort of area or around karingal drive, you'll find that price with a house out there. supply is short so may have to pay a pretty penny. as per frankston sth. as harris said was correct, he is spot on.

 

More big sales at auction. 2 Wykeham court. 3 bedder 1 bath and No garage 737.5k!!!!! Insane!!!

 

I would say it's about right.. It is very well located and appears to have a decent reno done on almost 600sqm so it seems fair value - Townhouses on 1/3rd of that land are now selling for well over $600k around that location.

 

Its great to see. People are really understanding now what the area is worth! I can see alot of people trying to flip or do renos in frankston now.

 

I remember posting on this very forum about Frankston (or was it Somerset?). I knew nothing about Melbourne and wanted some local advice about Frankston: I thought there seemed to be potential there.

I was laughed at by some locals telling me I knew nothing about Melbourne (which I openly admitted) and I remember being responded to very rudely about how I should stick with what I know.

While I never ended up investing there, it's funny now to see Frankston doing so well. Sometimes locals can't see the forest from the trees I guess.

 

The fact that this prop on 800 sqm got sold at close to the asking price of $4m (Frankston record) tells me that the area is in midst of a significant change and those priced-out from Mornington are heading north towards Frank.

https://www.realestate.com.au/property-house-vic-frankston-134982722


There were more $1m+ prop sold in Frankston in the past 3 months than all of 2019. This points to a very significant recalibration or an accelerated-gentrification with a covid-driven boom that has taken both the prop values and rents at historical highs. Vacancy is below 1% and prop seem to be on a 20% annualised growth trajectory now.

I have been a great admirer of the area since 2003 when I first bought here and picked up 2 side by side prop in Frank Nth for $289k together - on 1600 sqm. I used to update the SS forum a lot around all of my buys back in those days and the market activity and there were indeed some locals who would always go on about how this area was cursed - for lack of a better word. My largest portfolio is in Frank and I am in midst of multiple developments here and am thoroughly enjoying the rapidly changing demographic. 2020 closed with $618k median for the year- My tracking of the individual results tell me we are at $630k+ now and I would be very surprised if Frankston isn't sitting at $700k+ median by dec this year.

 

Yup I remember people talking about the crime and how I should just stick to Sydney.

 

Frankston keep changing and more developments always happening. The price boom in the area is a sign of what is happening.

 

Another auction coming up

https://m.realestate.com.au/property-house-vic-frankston-135548254

Should get 800k I'd say. Good development opportunity for anyone

 

@sauber you are right on, watching this one expect 800k's as well, lots of demand in Frankston area right now. Currently searching for a PPOR in Frankston South and the stock levels are very low for both homes and rentals, many selling before going to market. As the price rises, development will kick off further gentrifying the area!

 

@Harris Would be interesting to see if this chart continued its trend line, I wouldn't be surprised if it was right in line.



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I don't have the updated Core Logic graph but my sales tracking has Frankston's 3 month (dec - feb) median at $663k so that's a circa $94k improvement in median over 12 months however do note that the graph has rolling 12 months data. Nonetheless the market is on fire.. Below sale from yesterday confirms this.

https://www.realestate.com.au/sold/property-house-vic-frankston-135301550

Sold for $675k in Nov 19 and resold yesterday for $810k! And that too in Karingal on a main road on a sub 600sqm block!

 

Wow, that’s crazy.

Any idea if Seaford is also going strong overall?