More large homes hitting market, boosting median price

The sale of larger family homes across Melbourne has boomed, with the number of five-bedroom houses sold in the city’s middle suburbs up 25 per cent and outer suburbs up more than 20 per cent, the latest REIV data shows. 

A total of 963 five-bedroom homes were sold in Melbourne’s middle suburbs in the year to June 30, compared to just 768 in 2013-2014.

REIV Chief Executive Officer, Enzo Raimondo, said the number of four-bedroom homes sold also increased, up more than 7 per cent in Melbourne’s outer suburbs.

“The level of demand and competition for larger homes, particularly in the middle and outer suburbs, is encouraging more vendors to sell,” said Mr Raimondo. 

This demand is pushing up the median price of larger homes with significant price growth recorded for five and six-bedroom homes across the city.

The citywide median for a six-bedroom home rose 16.6 per cent over the previous year to $1,107,500 in the June quarter. 

Mr Raimondo said Melbourne’s middle suburbs were once again the main driver of this growth with the median price for a six-bedroom house up 24.7 per cent over the year to $1,115,100. This was followed by the buoyant inner suburbs where prices increased 16 per cent to $2,305,000.

“This substantial price growth reflects the strength of the Melbourne property market in the low interest rate environment.” 

Five-bedroom homes in Melbourne’s inner suburbs were also in hot demand in the year to June 30, recording annual price growth of 19.9 per cent to a $2,240,000 median. 

Camberwell, Kew and Mount Waverley saw some of the highest annual price increases, up 17.7, 12.6 and 12.1 per cent respectively.

Melbourne’s inner ring was also home to the city’s most expensive suburbs for five-bedroom properties.

“At almost three million ($2,955,000) Brighton has Melbourne’s highest five-bedroom median house price. This is up 24.7 per cent over the previous year.”

Kew and Balwyn also made the list with median prices of $2,600,000 and $2,490,000 respectively.  

Across the city seven-bedroom homes also boasted significant capital gains, up 33.5 per cent over the year to a $1,235,000 median.

The largest price increases for seven-bedroom homes were recorded in Melbourne’s middle suburbs, with the median price up 43.9 per cent to $1.2 million in the latest quarter. This rose from a median of $834,000 in June 2014.