Are 3 bedroom properties better value than 4 beds? The data suggests so.
Across 20 Melbourne suburbs 4 bedroom H&L packages average 14.0% above the resale medians in the same suburb. Where 3 bedrooms the gap is only 4.7%.
The old saying "bigger is better" may no longer hold true for house and land investments.
A 4/2/2 was often considered the sweet spot for investors however, at The Move we have have analysed the difference between package prices and the resale market and found an interesting trend.
Accross 20 suburbs 4 bedrooms, new-build asking prices are 14.0% above the established four-bedroom medians in the same suburb. Where 3 bedroom properties that gap collapses to 4.7%.
What does this mean for you? Well for a 3 bedroom buyer weighing new against established, the price objection you have been rehearsing largely is not there, and the conversation moves cleanly to build quality, warranty and depreciation benefits. However at 4 bedrooms the premium is real, the conversation is probably harder and valuations maybe more of an issue.
