The Real Estate Institute of Victoria has revealed Melbourne’s cheapest, most expensive and highest growing suburbs from last year’s December quarter.

Data shows that overall, Melbourne house prices rose yet again, up 1.1 per cent to a median of $821,000, raising the annual price growth to 13.2 per cent for 2017, the highest figure in seven years.

REIV President Richard Simpson believes the growth is a result of a strong auction market, with more than 25 auction records broken

“While price growth slowed in the December quarter due to increased supply and reduced investor activity, 2017 was a record-breaking year for Melbourne’s property market,” he said.

“High levels of interstate and overseas migration, new Government initiatives for first homebuyers and record low interest rates have contributed to significant double-digit price growth last year.”

Top performing suburbs were largely within the premium end of the market, with high demand outstripping supply, thus increasing competition and delivering great results in these areas.

Melbourne’s apartment market also rebounded in December with the citywide median price increasing 1.2 per cent to $594,500.

Mr Simpson added that regional Victoria had also experienced its strongest property market in recent years with house prices up 2.6 per cent in the December quarter to a record high $396,500, an annual increase of 10 per cent on the same period last year. 

“Regional cities and towns within commuting distance of the CBD have certainly benefitted from strong price growth in Melbourne with a number of these areas now recording median house prices higher than those in the outer ring.”