VIC Frankston 2021

Frankston South is really flying!

I was watching this, not dev stock but nice house which wasn't going to auction (most are auctions at the moment).

Advertised private sale 950-1040. Sold 1101.
Sold 45 Picnic Street, Frankston South VIC 3199 on 16 Mar 2021 - 2016844488 | Domain

Another one - basically land value, surprised me on sale price, much higher than the range - don't think this one went to auction either.
Sold 19 Baden Powell Drive, Frankston South VIC 3199 on 23 Mar 2021 - 2016836413 | Domain

It feels like 100k or more has been added to asking prices in the past 3 months!

 

Been watching this market closely. Got a development site in a court area less than 1km from Frankston High School.

In the initial process of getting planning permits organised...going for 4 units on nearly 1300sqm of land. Hopefully will still be a sellers market in 2/3 years time !

 

From Fin review this morning:

Mornington Peninsula winning Melbourne’s property price race

"From the cheapest to the most expensive, Mornington Peninsula suburbs dominate rankings for the steepest price rises in the year to the end of March across the upper, middle and lower tiers of the Melbourne property market, new research from CoreLogic shows."

Frank Nth is up 6.5% for the quarter! One of the best performers in Melb! That's annualised growth of 26%!

Frank is also very close. Given it has significant volumes (aporox 700 transactions per annum), data reliability is very high! Great news for the holders and I suspect we will see a lot more throughout this year and next!

 

Surely this is not possible if you listen to the MY’s and Veronica Morgan’s of RE.
According to them only inner ring blue chip can possibly perform.

Congrats to those who saw differently and purchased in Frankston early at good prices - well done!

 

Melbourne set to become the cheapest city in which to rent a home: Domain Rent Report

Except South East (inc Frank) & Mornington Peninsula, where the rents grew, rest of Mel went backwards in rental yield. The ideal combination of increasing rents paired with increasing prop values!

 

Wow that rent data is very promising for Frankston! I’m super stoked, just picked up an awesome site in FS area, prices are moving so fast in Frankston South.

 

Frankston one of the best performers in Melbourne - updated today from REIV:

https://reiv.com.au/market-insights/suburb/frankston

Frankston median house values up 9.8%! For the quarter! Now at $681k - up from $618k.

That's an almost 40% annualised growth rate.
Clearance rate of 89.5% Vs 83% for Melb Metro.
Rental yields strengthened.

Frankston North quarterly values up 13%! That's annualised rate of 54%.

All those dev blocks sitting there can now deliver significantly compounded margins.

Frankston South up by 12.3% which is 50% annualised as well!

https://reiv.com.au/market-insights/suburb/frankston south

Overall commentary for Mel metro:

https://reiv.com.au/policy-resources/latest-news/metro-houses-cross-the-million-mark

Congrats to all the holders! Just the start of a new chapter for the area

 

Melbourne rents already rising in some neighbourhoods despite broader weakness, data shows

The vacancy rates have further tightened at 1% and rents are up - Ideal combination between fast growing prop values and tight rental market

Credit: Domain

"Suburbs in areas where some locals can least afford rent hikes have attracted sea changers. Demand is high in the Frankston area, such as Patterson Lakes (up 7.1 per cent in a year) and Seaford (up 5 per cent).

Ray White Frankston’s Hayley Weston was “inundated” with inquires during and after lockdown, with remote workers keen to live closer to the beach and get value for money now they spend less time in an office.

“Properties we’ve had that I thought would really attract local families, it’s been people from other suburbs wanting to move down,” Ms Weston said.

With an average of 20 to 60 groups through each property, she has seen potential tenants offer anywhere from three to 12 months of rent in advance, or offer to pay anywhere from $10 to $40 a week more to secure a home."

 

Great news Harris. Thanks for the updates.

 

Check this out - https://m.realestate.com.au/sold/property-house-vic-seaford-135807738

$1M for a fairly standard 3x2x2 in Seaford (sorry, not in Frankston but the whole area seems to be strong).

 

Seaford up 9.5% for the quarter and 16% YoY with median at $820k and most double occ sites now sitting close to $1m mark.
https://reiv.com.au/market-insights/suburb/seaford

Frank Sth is now a touch away from being a million dollar median suburb!
https://reiv.com.au/market-insights/suburb/frankston south

 

What size block is considered a double occ site? Thanks

 

600sqm for a dual occ but the zoning varies throughout the suburb - close to activity centres/shops, nepean hwy pockets could get you 3/4 on 600sqm. Throughout Frank, it is safe to assume 300sqm/ TH but I have a 6 townhouse site in central Frank on 800sqm and a 23 apartment site on 1300 sqm, just finished build on 11 TH over 2100 sqm (under 200sqm/ dble story TH) however it's becoming challenging getting a 20 TH approval from council on another site on 3800 sqm site due to neighbourhood character/ built form and council's concern re over development.

In my opinion it is always worth paying a tad extra to get as close to activity centres as possible because the resultant yield from development delivers twice the number of units/ TH - so a 600sqm away from the hub might cost you $700k and near the hub $820k but the former gets you 2 and the latter will get you 4 so the increase in equity increases in much greater proportion than the initial investment on high density pockets.

 

Thanks very much for the detailed reply. Appreciated

 

https://www.realestate.com.au/prope...ge=rea:buy:srp-map&sourceElement=listing-tile

Thoughts?

 

this actually got sold for $902k at the auction 2 days ago - ESR $770k-$840. But a cracking buy for $900k in central frank with retaining exis renovated house at the front and permit approved for 2 large TH at the back.

There is another one 8 Queen Street, Frankston VIC 3199 - Aquire Real Estate
great rent @ $580/w - 621 sqm - will def get 5x2 bed TH (reverse living) or even 6, given its a corner block.

2 Queen St on similar block (not corner) got 6x2x2 TH (reverse living) and pre sold for over $500k each TH.

 

What, a R1Z 600sqm block can fit 5 or 6 units?
That's awesome

 

https://www.realestate.com.au/property-townhouse-vic-frankston-135531414
yes - 2 Queen St is identical size at 623 sqm and got approved for 6 dble story TH.
I have one very close by on Queen St on 870 sqm going through the council now.

For 8 Queen St (given it's in Frank High School Zone) very likely for 6 (but base the feasibility on 5) and c$780k would buy it. Great rental demand in that pocket too so I intend to hold all of mine long term.

 

There are some real good buys atm I'll post a few shortly

 

https://m.realestate.com.au/property-house-vic-frankston-136094122