The June quarter REIV median prices showed that while overall demand increased, there were types of homes in certain regions that recorded different levels of demand for both buyers and renters with 2, 3 and 4 bedroom family homes being in greatest demand.
In the south-east, the strongest demand was for two-bedroom homes in areas with a median of $600,500. This is a very high price for a two-bedroom home, highlighting that demand is well and truly exceeding supply for that type of home.
Lack of affordable 2, 3 and 4 bedroom homes has seen a real push to the outer south eastern suburbs and is reflected in the lowest vacancy rates for Melbourne being recorded in outer areas such as Pakenham, Cranbourne and Lynbrook.
This has also been repeated in the western suburbs of Melbourne, particularly in the Wyndham Vale to Melton corridor as well as the northern corridor out towards Craigieburn and Sunbury.
Three-bedroom homes in the western suburbs recorded the second-strongest demand, with an increase in the median that was 50 per cent higher than Melbourne as a whole. This is consistent with our view that good value housing can be found in the west and, judging by that result, many buyers and renters have realised the same thing.
Third on the list was a fairly standard family home, the three-bedroom house in the outer east. There the median increase by 9.4 per cent over the quarter to reach $528,000. There was a clear trend in the June quarter of strong demand in the affordable segment of the market, a trend that is reflected in the demand for family homes in the outer east.
The most expensive type of home appears to be the four-bedroom home in the inner south, the median for which is $1.8m.