Purchasing in VIC - Frankston Area

[Toni]

The Peninsula Centre will be developed into a $80 million Five Star Hotel, to include market cafe/bar and restaurant on the front ground floor facing Nepean Highway. Their will be some balconies on the front facade to take advatage of the bay views and gym & pool on the podium. The plan shown to councillors includes conference and wedding reception areas on the bottom three floors as well as serviced office areas. Work is likely to begin by Christmas and is expected the project will take about 14 months to complete.

Great news on the Marina Harris. Thank you for all your wonderful work and investigations you do for this site and its readers. It is great to be able to connect to this site and learn as much as we are able to, due to your hard work and dedication.

Just a regular update. Hope this is of interest.

 

[Les]

G'day apapworth,

I think this is my first post on SS, and thought this was a great thread. Keep it up.
(I believe this is how I subscribe to it

Hehe - well, subscribing means getting emails whenever someone posts to it. Is this what you wanted?

For now, you have replied to the thread - and welcome. To subscribe is a bit more onerous - and I'm still looking at just HOW you do this (I have done it before, and I'll find out again, just for you ). If/when I find out how to do this, I'll reply here,

Edited later: As Ruby said, it is easy - first, go to "Thread Tools" at the top of this page. Click on that, then click on "Subscribe to this Thread". This will then send you an email whenever anyone replies to this thread.

Regards,

 

[Ruby]

For now, you have replied to the thread - and welcome. To subscribe is a bit more onerous - and I'm still looking at just HOW you do this (I have done it before, and I'll find out again, just for you ). If/when I find out how to do this, I'll reply here,

It's easy if you just read the FAQ's Les....

http://www.somersoft.com/forums/faq.php?faq=vb_read_and_post#faq_vb_email_notification

 

[Harris]

The Peninsula Centre will be developed into a $80 million Five Star Hotel, to include market cafe/bar and restaurant on the front ground floor facing Nepean Highway. Their will be some balconies on the front facade to take advatage of the bay views and gym & pool on the podium. The plan shown to councillors includes conference and wedding reception areas on the bottom three floors as well as serviced office areas. Work is likely to begin by Christmas and is expected the project will take about 14 months to complete.

.

Thanks for the update Toni.

Here is the link to the Peninsula centre update on council website

http://www.frankston.vic.gov.au/About_Frankston_City/Major_Projects/Peninsula_Centre/index.aspx

and below is the link for major projects/ developments in Frankston

http://www.frankston.vic.gov.au/About_Frankston_City/Major_Projects/index.aspx

and a new website to promote the "New Frankston" with the changing demographics, major projects and developments

http://www.visitfrankston.com/visitfrankston.asp

Harris

 

[apapworth]

Thanks.... I couldn't see it while not logged in.

Cheers,
Adam

 

[Harris]

Karingal seems to be defying gravity with a constant upward movement on price points.

Cnr of Belar & Benanee sold 9 months ago for $240k by Andrew Milne R E. The buyer cleaned the property inside and out and with a fresh paint inside put it back in market last month selling for $315k last week. According to Andrew Milne himself, the amount he thinks the buyer spent on renovating would be well under $10k.

232 Skye Rd Frankston sold for $200k 4 months ago through eView real estate. A quick reno and the property back in the market within 3 months having sold for $276k early this month. Renovations included polishing floor boards, sprucing up of kitchen, re-paint and re-carpeting.

28 Heatherhill Rd – 40 years old, 2 bed 2 bath 14 sq house on 846sqm land, with single property covenant sold for $365k. Similar properties on Heatherhill Rd were selling for well under $300k earlier this year.

Whilst Karingal has always achieved values of well under $250k till earlier this year, properties selling for $300k + were less than 10% of the total turnover. This has increased to now over 30% prop selling at or above $300k mark.

Arthur Prios from eView mentioned that his agency sold 4 properties in Plover Ct in Karingal in the last few months, all selling for above $300k.

3 Violet St Frankston Sth (Kars St end) came to the market sitting on 840sqm expected to be sold for just under $400k through Hocking Stuart had 3 contracts within a day and sold for $453k.

According to Andrew Milne, the median prices his agency has been achieving over the last few months across all the monthly sales has increased from sub $250k in March & April to $270k in May and rising to $300k for this month.

The sales activity in my opinion has slightly decreased over the past month however the agents are reassuring me that the decrease has nothing to do with the existing stock (which still is in acute short supply) however it is directly related to many off the plan/ under construction dwellings put in the market at inflated asking price.

Having just spoken to the principal agents of 6 agencies, the consensus is for the following:

- No visible/ quantifiable effects as a result of interest rate hike on either activity or property values

- All agencies have been and still very short of listings

- Price points uniformly marching up across Frankston central, Frankston North, Frankston South, Frankston Heights, Karingal and Frankston East, however the fastest rise being experienced within prestige pockets of Frank Sth, Frank Nth and Frank Central.

- WA investors still the most dominant single buying group followed by Melb and NSW investors.

- Due to consistent demand for visually good quality properties, renovators have started buying properties (with potential) and are flicking it back within couple of months with minor renovations and achieving excellent returns. Karingal and central are renovators’ heaven areas (as 2 agents put it).


Will track the sales activity level again for Frankston, F North and F South on 13th and post back.

Harris

 

[Lyne]

Again another fantastic post Harris. Thank you so very much for taking the time to post & share the results of your investigations. This one thread that I always check on.

You are indeed VERY generous. Thank again.

 

[gussman]

Cnr of Belar & Benanee sold 9 months ago for $240k by Andrew Milne R E. QUOTE]

Sold in july 2006, settled in august 06, good result for 12 months, plus a 50% cg discount.

 

[jingo]

Hi Harris,

Thanks so much for the update. Your research skills are truly amazing!

Regards Jason.

 

[Harris]

Monthly update for Frankston

Frankston Bulky Goods Terminal:

Ground breaking ceremony was performed for the new $70 million Frankston Bulky Goods Centre which is expected to become operational next year.


Frankston Central:

Epicenter of the highest activity level and showing the most demand for well located properties.

Frankston – 67 prop sold for 200 prop available (houses and units combined)

Frankston - 60 prop sold for 156 prop available (houses/ townhouses only)

The demand for houses/ townhouses has been consistently higher than units/ apartments since the activity levels shot up at the start of the year.

Frankston North – 18 prop sold for 36 listed.

Based on the prop sold in the last 40 days, the average price of the prop has moved up to $227,000. Median will be close to the same figure since 80% of the prop available for sale fall within the price bracket of $200k - $230k. This is a significant jump on the average values being under $180k at the start of the year.

The asking price of some prop in Frank Nth is now more than asking price for 80% of the prop last year in Karingal..!

http://www.realestate.com.au/cgi-bi...eader=&c=23426875&s=vic&snf=ras&tm=1189672069

Infact, no-one would have expected these prop with the asking price tag in Frankston (Karingal area) even around Jan/Feb this year, let alone Frank Nth..!

http://www.realestate.com.au/cgi-bi...eader=&c=23426875&s=vic&snf=ras&tm=1189672069

http://www.realestate.com.au/cgi-bi...eader=&c=23426875&s=vic&snf=ras&tm=1189672069

http://www.realestate.com.au/cgi-bi...eader=&c=23426875&s=vic&snf=ras&tm=1189672069


Above examples are sufficient to demonstrate the massive jump in the values there. My 6 unit project calculations in Frank Nth was returning a measly < 10% at the start of the year and showing over 28% return in today’s market. (with an increase of 52% on prop value in 15 months).

Frankston South: 46 prop sold for 154 prop listed



43 Denbigh St (near the corner of Yuille St) listed and sold within 24 hours. This is 6th such sale in Denbigh St with 5 prop being sold within 24 hours of being available.

This is a true dump and purely represents land value. The land itself is located where the street dips and hence there would not be any views – with higher cost of construction on sloping land.

It sold for $480k (full asking price) and had it not been for the agent and vendor wanting a quick turnover/sale, I believe it could have fetched close to $500k.

Looking at the last sale, I am confident of achieving well over $500k for my prop purchased in March and represents a jump of 22% in 6 months !

With the amount of development happening in Frankston South ( 4 projects in progress on Denbigh St itself), the land content value for a unit site has increased significantly from around $125k/ unit site to over $160k.


Warringa St is another one setting records in prop values achieved. 2 auctions there this Sat and a third prop with plans approved asking $510k for a 2 unit site or about $255k per unit..! http://www.realestate.com.au/cgi-bi...eader=&c=78591887&s=vic&snf=ras&tm=1189673357


This Sat will see the most number of prop being auctioned for Frankston area ever and would be interesting to see the results.

Back with more next week.

Harris

 

[GordonGekko]

awesome Harris!

im kicking myself i only bought 1 house in Fr.North for a measily 176k (in 2005) (3 br! next to a reserve! quiet street 800 m to macdonnalds etc. and 3 km to the beach and i got it for 10k less than asking price , because no one wanted to live in Fr.North? (are you sick you are going to be killed if you live there...etc.) .. but i looove my house and i put in new windows and new kitchen soo it looks great!

awesome!

now on the other side .... who's going for Adelaide? and whats the deal with them 100K hotel rooms in QLD ..are they any good?.

Frankston to the MAX!

GG.

 

[Harris]

7 auctions this Sat with 5 in Frank Sth and 2 in Karingal.

I plan to be there for most auctions (all between 11am and 2pm). If any forumites plan to be there , send me a pm to catch up for a coffee in between the auctions.

Cheers

Harris

 

[gussman]

Which ones r u going to harris ? Are you going to buy more properties ? Have you heard any more about the marina ?

 

[Harris]

I am planning to start with the Banyan dve one which I think is around 11am and then to Culcairn Ave and the 2 in Warringa.

I will call the Project manager of the marina on monday to get the low down on the progress.

If you are around then, we can catch up.

I will pm you my mobile number.

Harris

 

[Harris]

Auction results:

11 Banyan dve - by Wentworth Crowders R E

More than 100 people at the auction with 5 bidders. Expected to sell for around $235k and sold for $252,000.

The house is a 3 bed, 1 bath sitting on 537 sqm in very average condition and needs good renovation.

18 Culcairn dve - by Andrew Milne R E

25 people at the auction. Again a very basic 3 bedder on an irregular block requiring a lot of work expected to sell for $270k sold for $281,000.

29 Mincha St - by Century 21 R E

Around 60 people at the auction, 4 bidders, expected to sell for around $275k, sold for $291,000.

9-B Warringa Road - by Hocking Stuart R E

Around 60 people at the auction for a 3 bed (neat condition) unit, first passed in for $365k and sold half an hour later for $370,000.

8 Charlotte Ct - by eView R E

Around 45 people at the auction for a 4 bed house in good condition passed in for $325k and expected to sell after auction. (will find out what it went for tomorrow).

2/36 George St - (auction was at 3pm, hence couldnt make it to the auction and not aware of the result).

32 Warringa Rd and another prop on Meerlu St in Karingal were both sold before auction.


Hocking Stuart (second largest agency in Frankston) had August as the busiest month ever for them in number of prop sold.

Network 1 also had Aug as their busiest month whilst Andrew Milne R E had Aug as the second busiest month this year.

With prop selling in Karingal at about similar price points to some Frankston South prop, I believe that the southern pockets of Frank Sth hasn't seen the values rise as quickly as Frank Central, Karingal, Frankston Heights and Central Frank, hence the ripple effect must see the prop there to grow at a faster rate in coming months than the rest of Frankston to maintain the historical price differences (being Frank High zone and with being more upmarket area). Other agents that i spoke to also confirmed that southern Frank Sth has a long way to go for achieving good growth levels and should see the rise in values in coming months.

According to Peter Goudorous (Director of largest agency in Frankston MPRE), the up to date data they have based on the prop they have sold in the last 6 months, demonstrates that the prices in Frankston have gone up by an average of 25% (based on their own stock and monthly sales data of over 60 sold prop /mth).

The average timeline across most agencies for selling a prop is still a week or less compared to over 12 weeks last year.

Clarification: : 43 Denbigh St is not a dump (as I posted earlier) and the property appears to be in half decent state - looking from the outside.. It sold last week within 24 hours and it is sitting on flat land (and not sloping land), albiet at the lower end of the street with no possibility of water views. I posted the info verbatim last week as it came through the selling agent however thought I need to clarify it after seeing the prop.

Harris

 

[jingo]

Hi Harris,

Thanks for the update. The information is appreciated. The market is moving very quickly now! Could be a good time to buy into Frankston South!

Regards Jason.

 

[DAAJ]

Hello Harris,

I was wondering what your thoughts were on the large increase of property prices on the "The heat in Melbourne's Inner City Property Market continues" thread and how it may impact on the surrounding suburbs of Melbourne and especially frankston. Up here in Brisbane a new house (correct me if i am wrong) around 15 to 20 kilometers away would sell for $450,000+ in comparison. And an older one would start around the $300,000+ price tag.
Cheers
Dom

 

[Harris]

Hello Harris,

I was wondering what your thoughts were on the large increase of property prices on the "The heat in Melbourne's Inner City Property Market continues" thread and how it may impact on the surrounding suburbs of Melbourne and especially frankston. Up here in Brisbane a new house (correct me if i am wrong) around 15 to 20 kilometers away would sell for $450,000+ in comparison. And an older one would start around the $300,000+ price tag.
Cheers
Dom

Hi Dom,

The inner melbourne is on fire and has been for good 12-18 months (depending on the suburb). Biggest increase in values in some suburbs historically and for others biggest 12 month increase in values in decades !

Not sure when it would peak, however after 30%-60% gains in that period, I cant see that level of growth continuing for too much longer.

Ripple effect is already in full swing, albeit in more middle ring suburbs. Preston, Reservoir, Oakleigh, Mitcham, Ringwood, Croydon are some witnessing that ripple.


Frankston is already on the rise - not sure if its directly connected to the ripple effect....more like for its own reasons:

A combination of being Bayside, Eastlink freeway, gentrification, new developments, proposed marina, $70 mill bulky goods terminal, extensive media coverage etc etc.

The ripple effect, technically speaking should also lead to increase in pressure on values further down the track as the ripple travels through the middle ring suburbs and on to outer ones. !

http://www.realestate.com.au/cgi-bi...eader=&c=11783214&s=vic&snf=ras&tm=1190016281

Now, if the property above in Karingal sells anywhere close to asking price, I would have no doubt in believing that Karingal has risen close to 30% in the last 6-8 months.

So it is moving, currently for its own reasons, however with the completion of freeway and surrounding suburbs getting more expensive, there is no reason why the values shouldnt keep going up for a while there.

Harris

 

[Harris]

http://www.realestate.com.au/cgi-bi...eader=&c=11783214&s=vic&snf=ras&tm=1190016281

Now, if the property above (4 Omaroo Rd in Karingal) sells anywhere close to asking price, I would have no doubt in believing that Karingal has risen close to 30% in the last 6-8 months.



Harris

4 Omarooo Rd (above prop) sold today for $290k+ . The agent wont confirm the exact figure as yet (before the contract goes unconditional) however sold the prop within 48 hrs of being listed at very close to asking price.

Harris

 

[Jom]

Hi
Do you know what the Charlotte Ct place went for in the end?