Frankston's Urban Transformation: 4,000 New Homes and 16-Storey Towers

Frankston Is About to Change Forever: Here’s What You Need to Know

Frankston is on the verge of a dramatic transformation that will affect every resident, property owner, and potential buyer in the area. The Victorian Government is moving forward with a plan to add 4,000 new homes in Frankston, with buildings rising up to 16 stories in parts of the city. Frankston, as we know it today, is set to change – but the question is, who is benefiting from this growth, and at what cost?

A Historic Change: 16-Storey Buildings in Our Backyard

Twenty-five years ago, I was the chairman of the committee that helped draft Frankston’s planning scheme following the amalgamations of councils. Even then, we knew Frankston’s Activity Centre needed to grow. It was clear that the city had to adapt to meet the housing and infrastructure demands of an expanding population. But what’s being proposed today, with buildings soaring up to 16 stories around the Activity Centre, is not what anyone envisioned, certainly not what the local community envisioned.

Back then, we thought of growth as a way to enhance the community, provide more services, and give Frankston the ability to support a larger, diverse population. We didn’t think about creating a small Melbourne city within our suburban boundaries. But that’s exactly what’s happening now – the state government is pushing forward with plans that will completely reshape the city’s landscape and, in the process, disrupt the lifestyle of its residents.

The new plan doesn’t just cover the core of Frankston; it’s set to stretch out as far as the freeway. This isn’t just development in the heart of Frankston – it’s sprawling, dense high-rise living that is going to change the very fabric of our community.

What’s Driving This Change?

It’s easy to wonder why this is happening, especially when the local residents and businesses haven’t been consulted about such large-scale changes. The reality is that this is all about money – it’s a cash grab.

One of the driving forces behind these changes is the Windfall Gains Tax (WGT), which was introduced by the Victorian Government in 2021. The tax is designed to capture a portion of the land value increase that occurs when the zoning of land is changed to allow for more intense development. In other words, if your property is upzoned from low-density residential to something that allows for taller, more expensive buildings, the government wants to take a cut of that increase.

It’s not just about providing homes – this change is about generating revenue from landowners. The WGT allows the state to collect a hefty percentage of the profits made from land value increases due to rezoning. If you own land in the newly rezoned areas of Frankston, be prepared for this tax to come after you. You may not be the one building a 16-storey tower, but your property is going to be affected by the changes in the planning scheme, and the state is going to take its share of any uplift in land value.

The government's argument is that this development will provide thousands of new homes for a growing population. But who really benefits from this urbanization? Certainly not the people who have lived in Frankston for years, enjoying its more suburban character and family-friendly atmosphere.

How Will This Affect Property Owners?

For those living in the streets surrounding the Activity Centre, this new development is going to come for your land. The zoning changes are designed to encourage high-density living, but this means your residential land is now viewed as a valuable commodity for developers. It’s a classic case of developers wanting your land, and the local government standing aside to allow them to buy it up, develop it, and then pay a portion of the proceeds to the state in taxes.

The new planning scheme is going to push property values up, but not in a way that benefits the people who already live here. For property owners who don’t sell and decide to stay, they may face the consequences of living next to high-rise buildings and experiencing loss of privacy, sunlight, and quiet streets that were once characteristic of Frankston.

Furthermore, the Windfall Gains Tax is designed to hit landowners directly. If you hold onto your property and the land’s value increases as a result of these planning changes, you could be hit with a significant tax bill. This means that while the state stands to benefit from all this new development, you could be left with the cost. If you’re not ready to sell, this tax could push you to the brink, especially for older homeowners who are trying to live out their retirement years in peace. The government’s Windfall Gains Tax isn’t just a development tool – it’s a financial burden on current property owners.

What Should You Do Now?

If you are a homeowner in Frankston, you need to understand that your property is not safe from the changes. This new development plan is pushing property values up – but not necessarily in a way that benefits you. If you’re considering selling, now might be the time to take action. But be aware that the Windfall Gains Tax could be coming for you if you’ve been holding out for a better deal in the future. Developers will be looking to purchase land in areas that will see the highest value uplift, and if you’re in one of those areas, you need to factor in the potential for tax implications before you make any decisions.

For those thinking about buying property in Frankston, take caution. While the idea of more homes being built may sound appealing for future investment opportunities, this transformation will drastically change the area’s character. Expect increased traffic, loss of green spaces, and possible impacts on local amenities. Moreover, the Windfall Gains Tax means that new buyers could face higher costs in the future if they’re purchasing from a landowner who is already feeling the tax burden.

The Frankston We Knew Is Gone

Frankston’s landscape is about to change, and the Frankston we knew is gone. This isn’t just about adding new homes – it’s about reshaping the entire community to fit a model that benefits developers and the state. What’s being done is a cash grab, driven by a desire to extract value from the land that residents and homeowners have been living on for years.

For those of us who care about the future of Frankston, this is a wake-up call. We need to understand what’s happening to our city and how these changes will affect us in the long term. Whether you're a property owner, potential buyer, or someone who cares about the future of our community, it’s time to look out, because this transformation is going to hit harder than you think.

If you have any questions about how these changes might impact your property, or if you need assistance understanding the Windfall Gains Tax and how it may affect you, don’t hesitate to get in touch.

The changes are coming. Are you ready for them?

David Dawn
Licensed Conveyancer
Victorian Property Settlements
Post Office Box 11220
Frankston, Victoria 3199
Email: David@quick32.com