Larger homes rebound in December as owner-occupiers return
Date: 4 Feb 18
Increased market participation by owner-occupiers has boosted the price of larger homes across the city. 
New REIV data shows three-bedroom houses outperformed all other property types in the December quarter, increasing 2.6 per cent to a citywide median price of $730,000.
REIV President Richard Simpson said traditional three-bedroom family homes in the city’s outer suburbs experienced the strongest price growth, up 17.2 per cent over the quarter to a median of $587,000.
“Space is at a premium in Melbourne, which is encouraging more family buyers to consider established suburbs in the city’s outer ring,” he said.
“The bridesmaid effect is really driving buyers with families further from the city, with strong growth within 20km of the CBD pricing owner-occupiers out of these markets.”
“Changes to densification and height restrictions in the past year have increased demand from developers in the inner and middle rings, with larger homes and land blocks in these areas pinpointed for future development.”
“Traditional homes in outer Melbourne remain relatively affordable by comparison, with buyers able to purchase a home with a backyard for less than half the price of those in inner Melbourne.”
Melton and Melton South in the city’s west experienced some of the strongest quarterly price growth for this property type, up 17.8 and 14.7 per cent respectively. Despite the growth, the median price of a three-bedroom house in both suburbs remains under $400,000.
“Suburbs better known for their affordability were the city’s top performers for family homes, as buyers looked for new growth areas to enter the market.”
Mr Simpson added that four-bedroom homes had also performed strongly in the December quarter, up 2.5 per cent to a citywide median of $851,000.
Hoppers Crossing in the south-west saw the largest increase for four-bedroom houses with the median price increasing 12.6 per cent to $595,000.
Meanwhile, citywide two-bedroom houses are the most expensive property type with a median price of $900,000.