The price of traditional family homes in Victoria has been boosted by increased market participation by owner-occupiers, according to the Real Estate Institute of Victoria.
New REIV regional data shows that three-bedroom houses experienced some of the strongest price growth in the December quarter, increasing by 3 per cent to a median of $345,000.
The industry body said that areas within commuting distance of the city recorded the highest growth for traditional three-bedroom homes, as first home buyers and families capitalised on stamp duty concessions and affordability.
CEO Gil King said that Norlane was the state’s top performer for this property type, with the median price of a three-bedroom house rising by 10.5 per cent to $299,000.
“While this was up from $270,500 in September, it remains well below the $730,000 median price for a three-bedroom house in metropolitan Melbourne,” Mr King said.
The REIV CEO said that three-bedroom homes were also highly sought after in the Geelong suburb of Lara, with the median price up by more than $36,000 in December to $450,000, an 8.8 per cent increase on September figures.
“Similar price growth was also seen in nearby Corio, where the median for a three-bedroom house rose [by] 8.2 per cent to $310,000.
“Family homes in Clifton Springs on the Bellarine Peninsula were also popular in the last three months of 2017, with the median price rising [by] 8.1 per cent to $400,000. This was $30,000 higher than the previous quarter.”
“This boosted the median price for a three-bedroom home in Ballarat East to $320,000, while similar-sized homes in Ballarat Central now attract a median of $399,000.”
The REIV said that other property types seeing statewide growth were three-bedroom units, up by 3.9 per cent to a median of $360,000, and four-bedroom houses, up by 1.1 per cent to a median of $470,000.