Increased market participation by owner-occupiers has boosted the price of traditional family homes across the state.
New REIV data shows three-bedroom houses experienced some of the strongest price growth in the December quarter, increasing three per cent to a median of $345,000.
Areas within commuting distance of the city recorded the highest growth for traditional three-bedroom homes, as first homebuyers and families capitalised on stamp duty concessions and affordability.
Norlane was the state’s top performer for this property type with the median price of a three-bedroom house in the suburb rising 10.5 per cent over the quarter 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 home in metropolitan Melbourne.
Three-bedroom homes were also highly sought after in the Geelong suburb of Lara, with the median price up 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 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 8.1 per cent to $400,000. This was $30,000 higher than the previous quarter.
Bairnsdale and Hamlyn Heights also experienced solid price growth for three-bedroom homes, up 7.8 and 6.4 per cent respectively.
Meanwhile, family homes in Ballarat East and Ballarat Central also performed well in the December quarter with the median price increasing 7.6 and seven per cent respectively. 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.
Other property types seeing statewide growth in the December quarter include three-bedroom units, up 3.9 per cent to a median of $360,000 and four-bedroom homes, up 1.1 per cent to a median of $470,000.
For more information on median prices by number of bedroom, head to reiv.com.au/market-insights.