Inner city cottage character attracts downsizers

Small period homes are surging in value across the inner ring in recent months – as reflected in current data compiled by the REIV.

In recent months, period homes in inner Melbourne have sold for as much as $10,000/square metre as buyers focus on securing small, character home in good locations.

The most sought after area for these smaller – one and two bedroom – homes in recent months is in Melbourne’s north and inner west, where buyers continue to look for value.

Northcote has seen a $200,000 rise in the past three months (from 1 June to 20 August) compared to the same period last year.

This growth, of close to 30 per cent, is just ahead of Footscray which has seen a $253,000 increase (25 per cent ahead of the same period last year).

REIV CEO Geoff White said that character homes were ever-popular in inner Melbourne.

“With development growth in the inner suburbs, there are fewer of these homes than there were in the past,” he said.

“Yet they seem to be just as popular as ever before – with the demand, and lower supply, leading to prices close to or above $1m for these smaller homes.”

Mr White said that the market is currently “ripe” for this sector of the inner city market.

“Period style homes are particularly attractive to downsizing homebuyers, offering character living in a smaller property,” he said.

“The ‘downsizer’ demographic continues to grow, as children leave home and empty nesters look for CBD fringe, smaller homes.”