5 bedroom house price boom in Melbourne/Mornington Peninsula

5 bedroom houses continue to outperform the growth of other property types. Whilst usually being the most expensive property type in a suburb, they are fairly scare and in high demand.

'FIVE-bedroom houses are growing in price and popularity in outer Melbourne, as more parents buy big with their adult kids staying at home longer in mind.

New Real Estate Institute of Victoria figures show the median price for the property type soared 25.5 per cent in seaside suburb Mt Eliza in the last financial year. This equated to a $280,000 increase to a new median of $1.38 million.

Five-bedroom houses also boomed in price in Mooroolbark, up 21.4 per cent to a $830,000 median, Mt Martha, 19.6 per cent to $1,366,500 and Frankston South, 18.1 per cent to $961,000.

More five-bedroom pads changed hands in Glen Waverley than any other Melbourne suburb in the year-long period, at 74, followed by Mt Waverley, 68, Mt Eliza, 63, and Balwyn North, 46. The city’s southeast accounted for seven of the top 10 growth areas for five-bedroom homes. Most of these were in the outer ring, and several were in coastal areas that also offered lifestyle benefits.'

Five-bedroom house price boom

 

Defies the downward trend in the average household size with people starting families later, more divorcees etc, but it does make sense given the rise in multi generational living.

I would assume that 5 bedroom houses as a % of the overall housing stock in Melbourne would be declining over recent years given all of the two and three bedroom townhouses that are being built everywhere also so they are becoming pretty scarce.

 

I would say the median has gone up due to increase in new stock of mcmansions in the 5 bedroom segment.. All the new houses by the builders that have 5 bedroom are usually the top of the range for the builder thus the higher value of end result

Interesting stat would be the average age of these 5 bedroom dwellings houses compared to their 3 bedroom counterparts

 

Apart from Mt Eliza, all both Waverleys and Balwyn North have high Asian populations and they do have a cultural tendency to live with older folks. Just thought I'd point that out.

 

Over the past few years 4 bedroom houses have seen higher capital growth when compared to fewer bedroom homes. I think there is a preference for larger houses in Australia. Especially when compared to other parts of the world such as Asia where most people are willing to live in small apartments.

We are similar to the US in preferring large size houses. On the other hand, people in Hong Kong have the smallest floor area on average.

Victoria also tend to build the largest apartments in Australia and build the largest houses. Overall, almost 74% of Australian's live in detached houses.

The increasing popularity of larger houses is also a growing trend. 'Over the past 60 years Australian homes have more than doubled in size, going from an average of around 100 square metres in 1950 to about 240 square metres today. This makes them the largest in the world, ahead of Canada and the United States.'

It is no wonder foreign investors typically from Asia have been required to try to fill the oversupply in apartments.

House sizes: How does Australia compare?

 

'Mr King said the city’s southeast accounted for seven of the top 10 growth areas for five-bedroom homes. Most of these were in the outer ring, and several were in coastal areas that also offered lifestyle benefits'. Both Waverleys and Balwyn North are not located in the southeast yet this is where the growth is.