Following the first formal land sales for Frankston on 29 May 1854, the suburb quickly began to develop into a structured community. On 12 December of the same year, Samuel Packham received a licence to establish the Frankston Hotel, which historical records place at the northwest corner of Davey Street and Nepean Highway—today the site of the Pier Hotel. Packham promoted the hotel as a country retreat, employing a kangaroo tracker and organizing game hunting expeditions for guests, highlighting early tourism and recreational activities in the area.

Around the same period, Charles Wedge established the Banyan sheep station on his pre-emptive land licence, covering areas now known as Carrum Downs and Seaford. Meanwhile, James McMahon purchased land over present-day Sandhurst and Skye, reflecting the growing agricultural and pastoral economy of the region.

The first permanent brick house in Frankston was constructed in 1855 at Ballam Park, replacing the earlier wooden house built in 1847. Frederick Liardet, the younger brother of Frank Liardet, built the residence in a French Colonial Gothic Revival style designed by their father, Wilbraham Liardet. Today, the house is recognized on both the Victorian and Australian heritage registers through the National Trust of Australia and is managed by the Frankston Historical Society, which offers tours and maintains a local history museum at the estate.

Community infrastructure also began to take shape during this period. A site was reserved for a Church of England (Anglican) on the corner of Bay Street and High Street in the Frankston CBD, which included a school area and a temporary burial ground. In 1856, a temporary hall was built to serve both as a place of worship and as a school, eventually evolving into the Woodleigh School. Frankston’s first post office opened on 1 September 1857, initially operating from this same hall, reflecting the early establishment of civic services.

By the late 19th century, Frankston had grown from a fishing village into a burgeoning township, with hotels, heritage homes, pastoral enterprises, religious institutions, and educational facilities laying the foundations for the suburb’s long-term development and community identity.