Demand for Melbourne real estate has increased over the December quarter, which has translated into rising property prices, according to the Real Estate Institute of Victoria (REIV).
The median property value for Melbourne stands at $555,000 – up 7.8 per cent from the last quarter.
In what may be good news for owners of real estate in the city of Knox, median property values in Melbourne's outer suburbs have increased 3.6 per cent.
REIV chief executive Enzo Raimondo said this improvement can be attributed to a number of factors, including growing consumer confidence, a drop in interest rates and increased activity in the final quarter for 2012.
He explained: "Underpinning this increase has been an estimated 16 per cent increase in sales transactions in Melbourne compared to the December quarter in 2011.
"Overall transaction numbers remain low in historical terms and that may cause some ongoing fluctuations, but if improvements in confidence continue, 2013 will see improved activity and an increase in sale values."
The median property values of regional areas remained steady at $305,000 while prominent centres saw rises, with Geelong increasing by over eight per cent. Bendigo recorded a 4.7 per cent rise to $310,000 and Ballarat median property values jumped 1.8 per cent to $290,000.