Interesting looking at growth over 24 months. Frankston North seems to have outstripped surrounding areas. In my opinion it’s purely a stigma that is keeping Frankston prices lower than their true value. Sure it’s still a bit rough around the edges but as soon as it hits that tipping point (which seems to be happening) my bet is we’ll see a correction and the gap between areas such as Frankston North and Seaford will reduce significantly.
Who knows some more undervalued suburbs? ;)
When KBrodee first started this thread, questioning his own thoughts re Frankston North, one of the parameters that can be useful is to consider the Median Values for an area. In this case, for reasons mentioned earlier, the Median was WAY South of reality. Have a read from here (link below) where I first questioned KBrodee about his purchase price of $376k vs the then Median Value of $316k.
That led (over the next few posts) to a few lightbulb moments re “Median Values”. Have a read. It is not that Median Values are “valueless” – but more that the calculation of the Median needs to be considered to be able to determine its accuracy (or otherwise).
In short, if values are moving quickly, the Median Values just can’t keep up as they are calculated via a 12 month “rolling window”. In his case, the Median when he was looking (around Sep 2016) was $316k, asking prices were around $380k at that time.
Today (May 2017), the Median is showing $394k, and asking prices tend to be in the early $4’s – so the Median today is not so far out of whack – but it is still a little South of the truth.
As a lagging indicator or as part of history, the ol’ Median is quite useful. It also works well if values in an area are either stagnant or slow-moving.
But all bets are off if an area has been spotted as “under-valued” and folk are knocking down doors to buy in that area.
Benny
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This reply was modified 7 years, 5 months ago by
Benny.
The amount of investment in Frankston is incredible. The new hospital, new train line, station and the 5 or so 12 storey developments is set to see the area grow further.
https://www.urban.com.au/forum/frankston-developments
https://www.urban.com.au/forum/mornington-peninsula-developments-mornington-mt-eliza-martha-cove-sorrento-rosebudIt has definitely propelled the Mornington Peninsula as it was and still is the 2nd top growth area in all of Australia. It really is a seperate market to Melbourne and isn’t nearly as inflated.
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This reply was modified 6 years, 2 months ago by Bayside.
Bayside
Coastal markets 2019
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This reply was modified 7 years, 5 months ago by
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