Prices are spiking up for double-fronted houses

Period double-fronted houses are the hottest residential property category in Melbourne’s inner-city at the moment. These large and wide homes are on track to achieve very high prices for vendors in 2015 because of their scarcity and the strong interest they attract from competing buyer groups, says Nelson Alexander Sales Director Arch Staver.

For every 20 single-fronted cottages in most areas of inner Melbourne, there is just one double-fronted house. It is little wonder these aspirational and sought-after properties played a key role in Melbourne’s real estate recovery last year. Nor is it the least bit surprising that their current rate of price growth is exceeding the price growth for other types of residential property.

Mr Staver says a number of inner-city double-fronted houses, which three years ago were auctioned for around $1.5 million, have sold for more than $2.4 million in 2014. In many cases, these properties were merely repainted or underwent a cosmetic renovation before being offered to the market.

In the current market, renovated double-fronted houses in good locations are almost always listed with $2 million-plus expectations. Some – especially free-standing double-fronters and semi-detached houses on large blocks – are commanding considerably more money than this.

“The new $2 million is $3 million when it comes to high-quality inner-city houses,” Mr Staver explains. “And $3 million prices are now almost exclusively paid for double-fronted houses.”

The supply and demand argument is a convincing one for double-fronted houses. Extra-wide Victorian and Edwardian residences occupy some of the finest locations in the inner suburbs and their limited supply means they benefit very strongly from demand from competing buyer groups.

A homeowner who offers a double-fronted house to the market will see robust interest from different demographic and buyer groups. These include professionals in their 30s with growing families who want to stay living in the inner city, but require additional bedrooms and living space.

Then there are baby boomers seeking single-level, easy-to-maintain period houses in lifestyle-rich locations.

Mr Staver says the additional width of double-fronted houses – many are more than 12 metres wide – is their great appeal to buyers.

He says sellers who list a double-fronted house are advantaged by the fact that baby boomers have substantial cash reserves to buy the lifestyle property they desire.

“There are an extraordinary number of baby boomers wanting to now buy into Fitzroy and Carlton,” Mr Staver says. “Many don’t want to purchase an apartment and then have to deal with an owner’s corporation. They want a house, and they love a good double-fronted house.”

He says the extra bedroom accommodation and space in a double-fronted house is extremely appealing: “When you walk into a double-fronted house’s entrance hall, you can either turn left or right. That’s rare in the inner-city.”

In 2014, Nelson Alexander auctioneers witnessed very competitive bidding for double-fronted properties that were auctioned across eight different inner-Melbourne municipalities. Un-renovated double-fronted houses tended to attract as much interest as renovated ones.

“I think the double-fronted house market is the most exclusive market in the inner-city,” Mr Staver says.

“That’s not just in Fitzroy and Carlton. You will find the same high demand for double-fronted houses in Prahran, East Melbourne and South Yarra – in any inner area.

“This is because the extra width and large amount of accommodation on one level, without the need for stairs, as well as the potential to have a two-car to four-car garage, are the key factors that come into play and make double-fronted houses so desirable.”

If you are considering selling a double-fronted house, please contact a Nelson Alexander office for a free appraisal and detailed local market information about this keenly-sought property category.