Two bedroom homes are top performers in Melbourne’s property market
One of the strongest growing sectors of the Melbourne property market is the two-bedroom house. According to the REIV’s latest figures, it has outperformed all other property types in terms of both growth and price, as affordability sees a shift away from the traditional home.
The citywide median price for a two-bedroom house increased 17.1 per cent over the year to September to $891,500 - $130,000 more than the same period last year. This was higher than the metropolitan Melbourne median price for any other property type, including four-bedroom homes at $831,000.
Melbourne’s inner north west with its rows of worker’s cottages, ripe with period features and with great proximity to the city, has seen two bedroom homes fetch excellent prices. The recent sale of 147 Wellington Street, Flemington
is an excellent example of buyer demand for this property type leading to a positive sale result.
REIV President Richard Simpson recently confirmed the demand for two-bedroom homes was driven by multiple buyer types.
“Single fronted homes in highly sought after areas have experienced a resurgence in popularity in recent years, appealing to a broad range of buyers including downsizers, couples and professionals.”
“Many of these older style homes have been recently renovated, offering quality amenities and lifestyle.”
Mr Simpson said a contributing growth factor was that buyers often preferred a smaller house to that of a similar sized apartment.
“Two-bedroom houses are highly sought after because they provide the buyer with land value and outdoor space, which remains a key factor for many buyers.”
“The top growth areas for two-bedroom homes were dominated by suburbs north of the CBD, with many of these offering price points well below their south-eastern counterparts.”
The typical three-bedroom family home also experienced strong price growth over the year, up 13.9 per cent to a median price of $712,000.
Information courtesy of the REIV