The contrasting demand for property based on location and bedroom numbers
November 24, 2009
New research from Victoria has dissected the contrasting interest in property based on the location and the number of bedrooms.
The September quarter Property Update from the Real Estate Institute of Victoria showed that the median price of a house in Melbourne has reached $480,000 - an increase of 6.7 per cent since the June quarter - and analysis shows that the level of demand varied according to the number of bedrooms and the location of the home.
The REIV calculates this variation of the median price series to help inform sellers and buyers about demand for different types of housing in different locations. It also reflects the fact that people often look for a certain size home in a range of adjacent suburbs.
In the detached houses segment the strongest demand in the quarter was for four-bedroom houses in the inner east, where the median price increased by 15.2 per cent, from $1,420,000 to $1,636,250.
The second-highest increase in price was found in the outer east, where two-bedroom houses now show a median price of $454,544, an increase of 13.9 per cent from $399,100 in the June quarter.
The fact that solid appreciation was evident in both expensive and affordable suburbs illustrates the broad-based nature of demand during this quarter, according to the industry body.
Third on the list were two-bedroom houses in the inner east and three-bedroom houses in the inner south, both of which recorded a 13 per cent improvement.
In the unit and apartment segment the highest price increases were recorded for three-bedroom units and apartments in the south east, where the median increased by 16.7 per cent, from $441,375 to $515,000. The second-highest growth was recorded for three-bedroom units in the north east and the third-highest growth was for two-bedroom homes in the north east.