The small battler suburb sits in third spot with 38 per cent annual growth in median house value to $434,183, according to CoreLogic figures in the 12 months to July.
The more affluent areas of Middle Park and St Kilda are the top two performing suburbs.
Frankston North was not the only suburb in the Frankston region that experienced huge price growth after attracting the interest of family buyers and investors.
Seaford recorded a 26.6 per cent annual growth to $664,897 to sit on 13th spot, while Carrum Downs had 24.5 per cent growth to $480,636 on no. 20.
Frankston North houses also breached the $600,000 price benchmark this year and agents said many houses had seen price growth of more than $100,000 over a year.
The eye-catching entertainment area at 1 Elisdon Drive, Seaford.Source:Supplied
“Frankston North house prices took a long time to grow but are now catching up with surrounding areas,” Ray White Frankston agent Brooke Wegener said.
“The suburb represents good value for money and has attracted plenty of first-home buyers and investors.”
While there are few units and townhouses in the suburb, this is expected to change as developers have bought larger blocks to build such homes, Ms Wegener said.
She expected prices to grow at a slightly slower but steady pace in future with strong demand and limited supply pf properties in the suburb.
2 Golden Court Frankston North recently sold for $542,000. Source: Supplied
2 Golden Court has a modern-style renovated kitchen. Source: Supplied
The agency recently sold 2 Golden Court, Frankston North, for $542,000. The house price had risen $221,000 from its previous sale in 2014.
In Seaford, house price growth in recent years has been driven mainly by young families moving in, Eview Discover agent Daniel McGlashan said.
“We have seen many buyers coming from inner bayside suburbs because of the affordable homes in Seaford,” he said.
“Prices have grown by more than $100,000 a year but this has not put off buyers because they are attracted to the access to the beaches and freeway.”
Mr McGlashan noted several million-dollar house sales in the suburb this year had lifted the profile of the suburb,
A three-bedroom house at 1 Elisdon Drive, Seaford, attracted 10 offers to sell recently for $780,000. It more than doubled its 2008 selling price of $318,000.
