The figures were buoyed by a rising presence in new housing estates with strong demand, particularly from first-home buyers, prices are rising, according to RPM research manager Michael Staedler.
“There’s moderate capital growth, as opposed to strong capital growth,” Mr Staedler said. “But the prices are not coming back.”
That’s a step ahead of the 4 per cent fall in the city’s median house price in the past 12 months, according to latest CoreLogic figures.
A contingent of downsizers were also reinforcing the new townhouse market.
But it was first-home buyers, some of them now priced out of house and land packages, who were increasingly turning to townhouses, which could be bought in some estates for as low as $397,000, said RPM head of project marketing Cameron Yates.
Some of them have simply been priced out of the traditional house and land package.
“Price points have moved to the level where some first-home buyers have already been priced out of house and land sales,” Mr Yates said.
“The first-home buyers seem to be gravitating more towards the affordable townhouse model, so it hasn’t been impacted as much as the apartment market.”
He said two-storey townhouses were selling fastest, lasting a typical three weeks on the market.
Urban Development Institute of Australia Victorian chief executive Danni Addison said affordability was a key factor influencing the demand in the townhouse market.