Media coverage on Frankston image: CBD Development
Frankston unit price surge tops town
Maw Ling, 6 February 2019, Real estate news
Frankston had the biggest boost in median unit price across Melbourne last year, with individual buyers and investors among those driving prices.
The suburb’s median unit price rose 11.9 per cent to $445,000 in the 12 months to December 2018, according to Real Estate Institute of Victoria of figures. Richmond’s unit market was in second place with a gain of 11.5 per cent. Affordability, changing lifestyles and location are among the factors behind rising sales and prices in Frankston, according to local agents.
In an apartment complex at 38 Playne St, there have been steady sales to individual buyers and downsizers, OBrien Frankston director Andrew Milne said.
The units in the year-old complex sold out in record time and with several being resold recently. “The apartments are popular because of the convenience and their location,” Mr Milne said. The good news for buyers in Frankston is that unit prices have retreated since the peak of the market in mid-2018. The median price went backwards 4.4 per cent in the last quarter to December 2018, the REIV data shows.
“The peak was probably last May although unit prices have not come down as much compared with houses,” Mr Milne said.
Units in Frankston have enjoyed strong price growth over several years, Ray White Frankston agent George Devic said.
“Lifestyles have changed and more buyers want a location close to the town centre, transport and waterfront, and units have become accessible and affordable,” Mr Devic said. “We see many outside buyers moving here and the quality of units is improving and there are also more high-rise apartments coming up.” Mr Devic noted the market was growing till last year but buyers who held on to their properties for at least seven to 10 years would still do well when reselling. “The market goes in cycles and the middle of last year saw a change in buyer demand and prices retreated,” Mr Devic said. “Investors and first-home buyers should still have access to financing to buy for units as these are priced lower than houses.”
High sale prices in Frankston school zone
Ming Haw Lim, 9 February 2019, Leader News papers
Homesellers sitting just outside the coveted Frankston High School zone are missing out on as much as $80,000 at sale time. Houses in the zone had a median price of $770,550 in the year to December 2018, latest data from the Real Estate Institute of Victoria shows. But houses within a 1km radius bordering the zone had a much lower median price of $690,000. Family buyers and investors are prepared to pay a premium to snap up homes in the zone, local agents say.
Apart from excellent VCE exam scores, the school is known for its quality co-curricular programs on music, sport and outdoor education. The school sits among the top 10 coveted public high school zones with the biggest price differentials between inside and just outside in Melbourne, according to the figures. “Homes in the high school zone have seen a surge in prices within the last three years and there is a perfect mix of luxury properties, renovators, units and townhouses,” Ash Marton agent Josh Wells said. “The main buyers are local families with younger children transitioning to high school and also investors looking to capitalise on fantastic rental returns.” Mr Wells added homes that had higher buyer interest were those with three to four bedrooms, an open-plan layout, and updated with landscaped gardens.
Families cashing out from the bayside and eastern suburbs were among those buying into the Frankston High School catchment area, Ray White Frankston agent Brooke Wegener said. “Houses in the zone can fetch a 10 per cent premium, and during the peak of the market some sellers would get as many as a dozen offers,” Ms Wegener said. “The market has changed but houses in the zone are still popular.” For those homes that sit within the zones for both Frankston High and Derinya Primary schools, the premiums fetched might be even larger, Ms Wegener noted.
The median price for a house within the zone for the recently opened Beaumaris Secondary College was $1.62 million, fetching a premium of more than $400,000 over those bordering the zone, the biggest differential in Melbourne, REIV president Robyn Waters said. She said access to sought-after public schools was one of the major factors that buyers with school-aged children considered when house hunting.