What Price is an Extra Bedroom?
It has long been believed that the more bedrooms a property has, the greater its value and research conducted by the Real Estate Institute of Victoria (REIV), now proves this. By calculating the median price of properties based on the number of bedrooms they have, the REIV’s research indicates that just a single additional bedroom can raise a property’s value by more than $100,000.
In Melbourne, 5 suburbs have 1-bedroom units that have a median price below $200,000. In these locations, the median price for properties with only one extra bedroom is over $100,000 more expensive.
For example, in the suburb of Caulfield North, 1-bedroom units have a median price of $315,000 – a price that is around $200,000 less expensive than the $516,500 median price tag of a 2-bedroom unit.
However, the research also shows that an extra bedroom does not always equate to more money in all suburbs.
The research is particularly useful for first-home buyers signing up for their first home loan, as the guide shows many Melbourne suburbs where it is possible to purchase a house or unit for less than $320,000.