The average cost of a 3-bedroom house in Melbourne is a topic of interest for many people looking to buy a home in the city. According to recent data as of September 2023, the median house price in Melbourne is approximately AUD 922,000 for a 2-bedroom house.
It’s important to notice that median house prices can vary according to different sources. In this article, we’ll also analyse a few other sources to provide a broader understanding.
However, this cost can vary depending on a number of factors, such as the location of the property, the condition of the house, and the current state of the real estate market.
In this article, we will explore the average cost of a 3-bedroom house in Melbourne in more detail. We will examine the factors that can affect the cost of a property, as well as provide some tips for those looking to buy a home in the city.
Average Cost of 3 Bedroom Houses in Melbourne
Melbourne is one of the most livable cities in the world, with a thriving real estate market. The average cost of a 3 bedroom house in Melbourne varies depending on the suburb and the type of property.
The cost of a 3-bedroom house in Melbourne can range significantly depending on the location, size, and condition of the property. For example, median house prices in various Melbourne suburbs are as follows:
- Craigieburn: $660,000 AUD
- Cranbourne: $661,000 AUD
- Melton: $500,000 AUD
- Officer: $705,000 AUD
- Hoppers Crossing: $620,000 AUD
- Werribee: Approximately $612,000 AUD
The median price of a 3-bedroom house in Melbourne has seen fluctuations over the past few years, reflecting the dynamic nature of the property market. In 2022, the median price of a 3-bedroom house in Melbourne was notably higher, but as of 2023, the market has adjusted to the figures mentioned above.
“It is important to note that the cost of a 3 bedroom house in Melbourne can also be affected by other factors, such as proximity to public transport, schools, and other amenities.”
For those interested in comparing costs with another major Australian city, you can explore Are houses cheaper in Melbourne than Sydney? to gain more insight.
Properties that are located closer to the city center or have access to good public transport are generally more expensive than those located further away.
Overall, the cost of a 3 bedroom house in Melbourne is relatively high compared to other cities in Australia. However, with the city’s strong economy and high standard of living, many people are willing to pay a premium to live in Melbourne.
Current Trends in Melbourne’s Housing Market
Melbourne’s housing market experienced fluctuations with prices rising after the onset of Covid, peaking in early 2022, and then falling until early 2023. Specifically, prices rose 15.8% from the onset of Covid to their peak in March 2022 but then fell by 7.9% until January 2023, as noted by Property Update.
Since January 2023, prices have shown signs of recovery, increasing by approximately 4.5% by the end of October 2023.
The median home value in Melbourne climbed to $755,871 in May 2023, which was a 0.9% increase from the previous month, according to The Urban Developer. This rise put the Victorian capital up 1.6% for the rolling quarter. These figures suggest that Melbourne’s housing market is on the road to recovery.
As reported by CoreLogic’s daily home value index. There has been a notable recovery of housing prices in Melbourne since 2017, with house prices increasing by 0.5% in October after a 0.4% rise in September 2023.
It is worth noting that the housing market is subject to a variety of factors, including economic conditions, government policies, and population growth. As such, predicting future trends is challenging.
Analysing these sources and current data it’s clear that Melbourne’s housing market is slowly recovering from the recent downturn.
Factors Influencing the Cost of 3 Bedroom Houses
The cost of building a 3 bedroom house in Melbourne can vary depending on several factors. Here are some of the key factors that influence the cost of building a 3 bedroom house in Melbourne:
The location of the property is one of the most significant factors that impact the cost of building a 3 bedroom house in Melbourne.
The cost of land in different suburbs of Melbourne can vary greatly.
‘The cost of land in the inner suburbs of Melbourne is generally higher than in the outer suburbs. Additionally, the cost of building materials and labor can also vary depending on the location.”
2. Size and Design
The size and design of the house are also essential factors that influence the cost of building a 3 bedroom house in Melbourne. A larger house will require more materials and labor, which will increase the cost of construction. Similarly, a more complex design with unique features will also increase the cost of construction.
3. Building Materials
The type of building materials used in construction is another crucial factor that influences the cost of building a 3 bedroom house in Melbourne. The cost of materials such as bricks, timber, concrete, and roofing materials can vary depending on the quality and availability of the materials.
4. Labor Costs
Labor costs are a significant factor that influences the cost of building a 3 bedroom house in Melbourne. The cost of labor can vary depending on the experience and expertise of the builder, as well as the location of the property.
5. Site Conditions
The site conditions of the property can also impact the cost of building a 3 bedroom house in Melbourne. For example, if the site has a steep slope or difficult access, it may require additional excavation or foundation work, which can increase the cost of construction.
In summary, the cost of building a 3 bedroom house in Melbourne can vary depending on several factors, including location, size and design, building materials, labor costs, and site conditions. It is essential to consider these factors carefully when planning to build a 3 bedroom house in Melbourne.
For those considering a purchase, understanding financial prerequisites is vital. You can find detailed information on this aspect by exploring How much deposit do you need to buy a house in Melbourne?
4 Simple Tips for Potential Buyers
When looking to buy a 3 bedroom house in Melbourne, there are a few tips that potential buyers should keep in mind to make the process smoother and more successful.
1. Do Research
Firstly, it is essential to do research and have a clear understanding of the current property market in Melbourne. This includes knowing the average cost of a 3-bedroom house in the area and being aware of any recent trends or changes in the market.
Reputable sources such as soho.com.au can provide up-to-date information on property prices and market trends.
2. Be Clear About What You Want
It is important to have a clear idea of what features and amenities are essential in a 3 bedroom house. This can include things such as the location, proximity to public transportation, schools, and shopping centers, as well as the size and layout of the house itself.
By having a clear idea of what they are looking for, potential buyers can avoid being swayed by properties that do not meet their needs.
3. Consider Working With a Buyers Agent
It is advisable to work with a reputable real estate agent who has experience in the Melbourne property market. A good agent can provide valuable advice and insights into the buying process, as well as help to negotiate a fair price for the property.
4. Be Ready to Act Fast
Potential buyers should be prepared to act quickly when they find a property that meets their needs. The Melbourne property market can be competitive, and properties can sell quickly.
By having pre-approval for a mortgage and being ready to make an offer, buyers can increase their chances of securing their dream 3 bedroom house.
By following these tips, potential buyers can navigate the complexities of the Melbourne property market and find the perfect 3 bedroom house for their needs.
Additionally, for those looking for available properties, exploring houses for sale in Melbourne can provide a comprehensive view of the current offerings in the market.
Suggested reading: After reading this, enhance your knowledge about the local real estate market by checking out our detailed analysis: How much is a house in Melbourne?
FAQs on ‘What is the Average Cost of a 3 Bedroom House in Melbourne?’
1. What is the average cost of living in Melbourne for a single person?
The average monthly cost of living in Melbourne for a single person is around $2,500, encompassing housing, food, rent, transportation, entertainment, and other amenities. This figure provides a general estimate of the expenses one might expect while living in the city.
2. Is a salary of 100k AUD per year good for living in Melbourne?
With an annual salary of $100,000, one is above the average income in Melbourne and can lead a comfortable life while also saving money, assuming frugal living habits. However, in desirable city locations like Melbourne and Sydney, a significant portion of income may be allocated to house rents.
3. Which part of Melbourne is considered the wealthiest?
The wealthiest suburbs in Melbourne include Toorak and Hawksburn, located in the 3142 postcode. Situated just five kilometres southeast of Melbourne’s CBD, this area hosts more of Australia’s richest millionaires and billionaires than any other suburb in the country.
4. What is the happiest suburb in Melbourne?
Tarneit is recognized as the happiest suburb in Melbourne. Analysis of Census data by The Age revealed Tarneit as having the most mentally healthy residents. The suburb has experienced rapid growth over the past 25 years, becoming one of Melbourne’s fastest-growing areas.