The latest REIV figures show 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.
REIV President Richard Simpson said growth for two-bedroom homes was widespread across the city, with buyer demand the driving factor.
“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.”
“Smaller homes also allow buyers to enter the market below the suburb’s median price, particularly in the city’s inner ring where a two-bedroom house commands $400,000 less than the region’s median house price.”
He added that with the exception of Frankston, all of the top performing suburbs for two-bedroom homes were located within 20km of the city.
“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.”
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 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.
Top performing family homes were predominantly located in the city’s more affordable suburbs, as buyers were priced out of inner city areas where the median for a three-bedroom home is just under $1.4 million.
Top Melbourne suburbs for two-bedroom houses, median price and annual change
Glenroy – $675,500, 38.8% annual change
Fitzroy North – $1,270,000, 33.5% annual change
Reservoir – $805,000, 33.1% annual change
Frankston – $507,750, 32.4% annual change
Kensington – $990,000, 2.8% annual change
Clifton Hill – $1,250,000, 23.8% annual change
Yarraville – $950,000, 23.3% annual change
Heidelberg West – $715,000, 21.2% annual change
Port Melbourne – $1,205,000, 20.8% annual change
Rosebud – $455,000, 19.7% annual change
Top Melbourne suburbs for three-bedroom houses, median price and annual change
Broadmeadows – $532,000, 40.6% annual change
Thomastown – $612,000, 36% annual change
Frankston North – $432,500, 33.3% annual change
Heidelberg Heights – $890,000, 32.3% annual change
Highett – $1,257,000, 30.3% annual change
Werribee – $441,000, 29.7% annual change
Meadow Heights – $440,000, 29.4% annual change
Melton South – $328,000, 28.6% annual change
Sunshine West – $617,500, 28.6% annual change
Frankston – $560,250, 28.6% annual change
