Frankston is set for continued growth with the past few years performing strong. Frankston experienced 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 the top 90 schools in Melbourne in 2018 which has made the school zoned areas and specifically Frankston South more popular and added an $80,000 premium in the zone.
Frankston South vendor scores with high-achieving school zone location – realestate.com.au
https://www.realestate.com.au/news/high-sale-prices-in-frankston-school-zone/
‘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 train line extension business case will be completed early this year so plans are likely to come soon. This will mean both state and federal parties will have all committed to the project. Labor vows to extend Frankston line sooner. Albanese said Labor would seek to begin soon after the completion of the project’s business case in early 2019.
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.
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
Frankston and Frankston South have also maintained a consistent 70% auction clearance rate for the whole of 2018. Frankston South and Frankston also have good DSR scores for property investment.
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). Frankston had the biggest boost in median unit price across Melbourne last year, with individual buyers and investors among those driving prices.
Melbourne’s price growth stars revealed
In a market analysis on Hotspotting, industry watcher Terry Ryder said the cheaper end of the market (mostly the outer ring suburbs) are still rising – and some of them are rising strongly. Some of the regions with multiple suburbs recording solid price growth are the local government area of Frankston, Hume and Casey. In other words, its mostly the outer-ring areas which are still delivering strong price growth. (7th February 2019).
Angalfaria.
