Melbourne House Prices Rise 3.6%

House prices across Melbourne have increased over the three months to March, rising 3.6 per cent compared to the previous quarter.

This is according to data from Australian Property Monitors (APM), which showed that units have also experienced a similar rise.

The price of units has risen sharply, increasing 2.6 per cent over the same period.

Over the past 12 months alone, Melbourne's median house price has escalated by 3.7 per cent, showing the best performance for the city's market since the March quarter of 2010.

Demand for units and houses in the area is likely to come as welcome news to anyone trying to sell property in Rowville, as the effects of this optimism are felt throughout the state.

This news comes as the Real Estate Institute of Victoria revealed that the rental market across Melbourne is tightening, with the vacancy rate falling from 3.6 per cent in January to 2.8 per cent in March.

Asking rents therefore increased by 3.7 per cent from $381 per week to $395 for a house, which may encourage more people to consider purchasing property in the city.

The greatest tightening was seen in inner city areas, where the vacancy rate declined from 3.8 to 2.9 per cent.