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Big is not always best!

Marble bedroom with poster, front, toned

Two-bedroom houses are outperforming the typical family home in Melbourne’s inner and outer rings as buyers look to enter the market below the suburb’s median house price.

New REIV data shows the median price for two-bedroom homes in Melbourne’s inner ring rose 14.7 per cent over the year to March to $1,015,000 – a $130,000 increase.

By comparison, the median price for three-bedroom homes rose 12 per cent over the year to $1,310,000 while four-bedroom homes within 10km of the CBD increased 8.5 per cent to $1.9 million.

REIV President Joseph Walton said two-bedroom homes offer buyers an entry point to some of Melbourne’s most expensive suburbs.

“Smaller, single-fronted homes deliver value for money, particular at the top end of the market where the median house price is currently just over $1.5 million,” he said.

“Given space is at a premium across the city, two-bedroom homes are ideal for couples and downsizers who want the backyard but don’t necessarily need the three-bedrooms.”

Mr Walton added that buyers were also seeking value at the affordable end of the market with two-bedroom homes in outer Melbourne performing better than any other property type in outer Melbourne.

“While larger family homes are typically the norm in outer Melbourne, the strongest price growth has actually been in the two-bedroom market where the median has increased almost 12 per cent over the year to $460,000.

“A two-bedroom home allows buyers on a budget to enter the market well below the suburb’s median house price without needing to consider an apartment.”

“A backyard is still a priority for many buyers and this factor is really driving growth for smaller homes across the city.”

Information courtesy of the REIV

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