Bayside Motel, Frankston sold for $6.1m as suburb’s ‘very cheap’ prices attract buyers
Soaring interest rates and a construction crisis hasn’t stopped buyers with big plans snapping up Frankston properties including this old motel.
South East
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A prime beachside property has sold for $6.1 million as buyers continue to snap up bargains in Frankston.
The Bayside Motel, at 406 Nepean Highway, sits on 3682 sqm alongside Kananook Creek.
Black Fox Real Estate agent Robbie Emond said the new owner would continue to rent the site’s self-contained units in the short to medium term.
“All the Frankston motels have moved to that model,” he said.
“Rental properties are so hard to find and motel owners are capitalising on that.”
However, Mr Emond said the property would likely to redeveloped with the potential for townhouses or apartments.
“You can build to five storeys there and it’s a great location, close to the beach, walking distance to the train station and CBD,” he said.
Mr Emond said interest in Frankston was high as the suburb was cheap compared to neighbouring bayside municipalities including Kingston and the Mornington Peninsula.
“Buyers are snapping up properties with the plan to sit on them until Frankston really takes off,” he said.
Earlier this year apartment, townhouse and office developer Pace bought Frankston’s old cinema site for $16m from another developer, who had paid $13 million for the site about three years ago.
Pace Development Group plans to build about 200 apartments on the vacant land as part of a $150 million project.
When launching the project Pace managing director Shane Wilkinson said the apartments would feature views across Port Phillip Bay and offer a low maintenance lifestyle.
“Our design brief emphasises Pace’s commitment to developing buildings that are truly iconic and timeless in their architectural language,” Mr Wilkinson said.
He said the 14 storey U-shaped building would feature retail on the ground floor to add to the existing mix of dining, shopping and services on Nepean Highway.