The demand for larger family homes with three and four bedrooms has boosted the median house price for larger homes across Melbourne, the latest data from the Real Estate Institute of Victoria shows.

Three-bedroom houses in Melbourne’s desirable inner suburbs recorded the highest increase of all property types in the three months to September 30, up 5.8 percent to a median house price of just over $1.1 million. 

Four-bedroom homes within 10 km of the city also experienced solid growth, increasing 3.8 percent over the quarter to almost $1.7 million.

REIV Chief Executive Officer Enzo Raimondo said growth for larger homes was widespread. "Across metropolitan Melbourne the median house price for three-bedroom homes rose 3.6 percent over the September quarter to $603,000 while four-bedroom homes were up three percent to a city-wide median of $752,000," said Raimondo.

Larger houses in Melbourne’s middle ring suburbs were also highly sought after, with significant capital growth recorded for both three and four-bedroom homes. In the three months to September 30, the median for a three-bedroom home increased 3.1 percent to $675,000, while four-bedroom properties in the region climbed 3.8 percent to a median of $955,000.

"Family homes will always be desirable, as they appeal to a broad range of buyers and offer the added benefit of land value," said Raimondo. "Melbourne’s outer suburbs have also seen price growth this year as buyers have sought value further from the city, with larger blocks attracting high buyer interest as the city’s middle suburbs have increased in price."

Larger apartments were also experiencing growth, with three-bedroom apartments increasing two percent over the quarter to a median of $660,000.