Most readers searching for The Ambassador Frankston want to know what the building is now and what its units sell for. This article draws on published reporting, and Domain reports that the former Ambassador Hotel at 325 Nepean Highway was converted from motel rooms into apartments in 2009. It also separates confirmed facts from claims we could not verify.
Last checked: 2026-11-03
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Current use: Studio apartments in the former Ambassador Hotel complex · Affordability claim: Melbourne’s most affordable property (24 Feb 2026 report) · Address: 7/325 Nepean Hwy, Frankston VIC 3199 · Operator website: ambassadorfrankston.weebly.com
Snapshot: what the record confirms
- The complex has 110 residential units subject to a Section 173 agreement that requires owners to tenant them rather than live in them as principal residence (realestate.com.au (2019))
- The Section 173 agreement stemmed from a 2006 VCAT decision that ruled the units suitable only for short and medium term accommodation (7NEWS)
- Units were converted from motel rooms and sold as low-priced studio and two-bedroom apartments in 2009 (Domain)
- Six studio apartments in the complex sold for $80,000 each, totalling $480,000, as reported in February 2026 (Herald Sun)
- The former chapel was listed for sale in late 2024 at $1.25m to $1.375m by Turning Point church, which bought it in 2021 (realcommercial.com.au)
How we researched this
Last checked: 2026-11-03.
Sources reviewed: property and newspaper news coverage, real estate agency and property portal listing pages, a conveyancing firm’s published commentary, and one community discussion thread.
We did not visit the site, interview staff, owners or residents, retrieve council or VCAT documents, check official crime statistics, or independently verify any sale or listing price.
| Item | Reported detail |
|---|---|
| Address | 325 Nepean Highway, Frankston VIC 3199 |
| Residential units | 110 |
| Unit types after conversion | Studio and two-bedroom apartments (sold from 2009) |
| Planning condition | Section 173 agreement: units must be tenanted, not owner-occupied as principal residence |
| Section 173 origin | 2006 VCAT decision |
| Six-studio sale (February 2026) | $80,000 each, $480,000 total |
| Chapel asking price (late 2024) | $1.25m to $1.375m |
| Chapel owner purchase year | 2021 (Turning Point church) |
| Distance to beach (2026 listing) | About 250 metres |
The Ambassador Frankston for sale
Current use as studio apartments
Recent reporting describes the complex as apartments rather than a hotel. Recent sale reporting describes the units as studio apartments, and the 2009 conversion sold them as studio and two-bedroom apartments, according to Domain. Use is restricted by the Section 173 agreement, which realestate.com.au reported in 2019 limited owner-occupier buyers.
Agent Anthony Sansalone of Hocking Stuart Frankston put the investor case in those terms at the time.
If you were a savvy investor and you could bide your time, all of a sudden the values in there would rise quite significantly.
Anthony Sansalone, Hocking Stuart Frankston
Warning: Victorian Property Settlements says it has deliberately chosen not to act for buyers or vendors in the building and advises clients to walk away (Victorian Property Settlements).
Affordability claim in 2026 coverage
Coverage from late February 2026 frames the complex as one of Melbourne’s cheapest. Domain’s 25 February report carries a headline describing it as Melbourne’s cheapest apartment.
The comparison behind the claim is arithmetic on reported figures: six studios at $80,000 each, against a Melbourne median unit price of $624,000 that the Herald Sun cited in the same reporting.
Price band in recorded sales
- A one-bedroom unit sold for $99,000 in June 2024, according to 7NEWS.
- A ground-floor one-bedroom at 40/325 Nepean Highway last sold for $92,000 in September 2025 and was listed at $149,500 in January 2026 after renovation.
- Other two-bedroom units sold for between $196,000 and $238,000 in 2025, per the realestate.com.au listing report.
- Frankston’s median unit value was $550,000 (PropTrack, 2026) and $505,000 (realestate.com.au, 2024).
Agent John Walsh of Aquire Real Estate estimated that 10 to 15 per cent of the more than 100 apartments are in similar condition to the six studios sold, as the Herald Sun reported.
The only good thing was the bricks.
John Walsh, Aquire Real Estate
Who this price band suits: budget-focused buyers comparing reported unit prices with other Melbourne options, and readers who want a central Frankston location. The 2026 realestate.com.au listing places a unit about 650 metres from Frankston Central and 1.1 kilometres from Frankston train station.
Tip: Victorian Property Settlements advises buyers to ask about the original use of the unit, any occupancy or planning restrictions, and whether they can live in the unit or only lease it.
The Ambassador Frankston reviews
What the search results show
No star ratings and no guest or resident review text for the complex were found. The closest public discussion is a Reddit r/melbourne thread on Frankston as a family place, which describes the Ambassador in Frankston North as a bad area expected to change slowly, with gentrification under way across Frankston (Reddit r/melbourne). That is one community post, so it is low-confidence context.
Real estate coverage also includes comments on community stability. Adrian Foster of Fosterfroling Real Estate described the Section 173 effect this way.
It creates a transient community and transient communities are never stable.
Adrian Foster, Director, Fosterfroling Real Estate
Gaps in review evidence
The real estate and news coverage supplies most of the detail here, and none of it is a review from a guest or resident. We found no official crime statistics for the address, and no council, VCAT or body corporate document confirming the agreement’s current terms.
Warning: Safety reporting spans several years. Domain reported in 2016 that paramedics would not attend the site without police, citing the Ambulance Employees Association. Residents hired 24-hour security guards after the complex was branded one of the most dangerous addresses in the country in 2017, according to the Herald Sun. 7NEWS reported a CCTV system with a direct feed to the police station about two years before July 2024.
What to watch: Whether the Section 173 terms change is the main open question. No document reviewed shows a proposal to remove them.
325 Nepean Highway, Frankston
Address and postal details
Domain gives the address as 325 Nepean Highway, Frankston VIC 3199. The 2026 realestate.com.au listing for ground-floor unit 40/325 Nepean Highway places the building about 250 metres from the beach and 1.1 kilometres from Frankston train station.
Operator website
A website at ambassadorfrankston.weebly.com has been associated with the complex, but no source reviewed confirms that site or identifies a current operator, so we have not linked it and treat it as unverified.
What this means: The street address is the most reliable identifier available. Because the complex is split into individual units, the building address alone does not identify a single unit for sale or lease.
The Ambassador Frankston restaurant
What the sources confirm about dining
No restaurant listing or dining description for the apartment complex was found, and the complex is described as residential. The only food service linked to the site is in the former chapel. Realcommercial.com.au reported that the chapel, about 500 square metres of land with three powder rooms and a kitchen, was last run as a social enterprise cafe by Wildpath.
The chapel was listed in late 2024 at $1.25m to $1.375m. Agent Mr Golf said it could be leased for about $65,000 a year and has scope for medical, dental or allied health use.
Tip: Anyone looking for a food service at this address should check the chapel listing, since it is the only dining-related asset found in the sources.
The bottom line: The chapel is listed for sale rather than operating as a cafe, and no source found shows a restaurant in the apartment block.
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Frequently asked questions
What is the address of The Ambassador Frankston?
The address is 325 Nepean Highway, Frankston VIC 3199, according to Domain’s reporting.
How many units are in the former Ambassador Hotel complex?
The complex has 110 residential units, according to realestate.com.au’s 2019 report.
What planning condition applies to the units?
A Section 173 agreement requires owners to tenant the units rather than occupy them as principal residence. It stems from a 2006 VCAT decision.
What did six studio apartments sell for?
Six studio apartments sold for $80,000 each, totalling $480,000, as the Herald Sun reported in February 2026.
Is there a restaurant at the property?
The sources show no restaurant at the apartment complex. The former chapel was last run as a social enterprise cafe by Wildpath and was listed at $1.25m to $1.375m in late 2024.
How far is the building from the beach?
The building is about 250 metres from the beach, according to the 2026 realestate.com.au listing.