property
Investor Re-entry Sparks Heightened Competition in Frankston's Property Market
Returning buyers are pushing up contest levels on listings near Kars Street and the Frankston Waterfront redevelopment zone.
How we reported this
Investor purchases accounted for 38 per cent of Frankston sales settled in the June quarter, up from 24 per cent three months earlier.
Local agents report that out-of-area funds are now chasing established homes with rental yields above 4.8 per cent, a shift that has shortened the average days on market from 41 to 27 since May. The change arrives as Frankston City Council prepares to release 12 new planning approvals for medium-density sites along Nepean Highway by the end of July.
Competition tightens in core pockets
Properties within 800 metres of Frankston Station drew an average of 3.2 bidders at auction last month, compared with 1.9 in the same period last year. One four-bedroom weatherboard on Kars Street sold after 12 bids on 27 June, finishing $92,000 above the reserve. A second listing on Oliver's Hill Road attracted three investor groups who each submitted pre-auction offers above $1.15 million.
Frankston Waterfront Traders Association data shows foot traffic at the adjacent marina precinct rose 19 per cent in the past six weeks, a factor local valuers cite when assessing nearby rental demand. The council's current housing strategy, updated in March, targets an additional 1,400 dwellings within the activity centre by 2030, a pipeline investors are now pricing into offers.
Price signals and next steps
CoreLogic recorded a 4.3 per cent median price lift to $847,000 for Frankston houses between April and the end of June. Clearance rates at weekend auctions held steady at 71 per cent, with investor contracts making up the majority of unconditional sales above $900,000.
Buyers seeking entry should inspect before the next rate announcement on 4 August and secure pre-approval limits that allow for at least two rounds of bidding. Sellers listing this month are advised to prepare tenancy schedules early, as investor due diligence now centres on verified rental history rather than cosmetic upgrades.
This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.