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A Unique Opportunity: The Revival of the Former Ambassador Hotel
A Frankston apartment located within what was once deemed Australia’s most dangerous address has hit the market for a surprising price of $149,500. This one-bedroom unit, part of the freshly renovated former Ambassador Hotel, offers a chance for potential homeowners and investors to secure an affordable piece of real estate in a location that has undergone significant transformation.
The History Behind the Walls
Initially serving as a luxurious wedding venue, the Ambassador Hotel was synonymous with gatherings and celebrations until the 1990s. However, with the shift to short-stay accommodation, the property saw a steep decline, becoming infamous for crime, vandalism, and anti-social behaviour. Reports from 2018 detail shocking incidents, such as a neighborly dispute escalating into violence, which only intensified the building's negative image.
Yet, despite its troubled past, the transformation of the Ambassador has paved the way for renewed interest. Under the stewardship of committed owners, the once heavily policed property has now become quieter and significantly safer, making it attractive for potential investors keen to capitalize on a recovering area.
Investment Potential: A Property to Watch
The apartment, specifically unit 40 at 325 Nepean Highway, boasts recent upgrades including a brand-new kitchen, fresh carpets, and a vibrant paint job. With only 250 meters to the beach and close proximity to Frankston Central and the train station, it positions itself as an appealing choice. Adrian Foster, director of Fosterfroling Real Estate, believes its solid brick structure and suspended slab roof also add lasting value.
This ground-floor apartment presents a rental potential of $270 to $285 per week, allowing investors to enjoy a substantial return. The previous owner initially aimed for long-term investment but shifted gears to capitalize on the value added through renovations.
A Section 173 Overlay: What It Means for Buyers
While the building boasts many advantages, potential buyers should note that a Section 173 overlay is in place. This means that residents cannot use the apartment as their principal home but can stay here if they have another permanent residence. Understanding these regulations is crucial for potential investors and future owners, allowing them to navigate their options effectively.
Comparative Market Insights
In 2025, similar two-bedroom apartments within the former Ambassador were sold for prices ranging between $196,000 and $238,000, demonstrating a recovering market. In contrast, the median unit price in Frankston has been reported at $550,000, making this apartment an enticing option for first-time buyers or investors looking for affordable properties in a bustling locality.
A Bright Future: What Lies Ahead for Frankston Investments
The revitalization of the former Ambassador Hotel signifies promising shifts in the Frankston property market. With rising interest and investment surrounding the area, it stands as a beacon for future developments. Additionally, as urban areas continue to attract people looking for affordable housing, this apartment could represent a compelling entry point for new homeowners.
Investing or living in the Frankston area not only expands opportunities but also allows buyers to engage with the community's recovery and growth trajectory. This focus on community revitalization emphasizes a hopeful outlook for future property values and quality of life.
Securing Your Piece of Frankston: Take Action Now!
If you’re considering making this unique part of history your new home or investment, act quickly as interest is high. The dual allure of affordability and location will likely attract many buyers. Subscribe to Property Newcastle today to stay informed about this and other exciting property trends, ensuring you lead the conversation on property in Frankston and beyond!
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