One-third of the properties located in Melbourne's suburbs have a price tag of more than $1 million, new analysis of the housing market shows.
Figures from the Real Estate Institute of Victoria (REIV) reveal that the number of homes in the region worth over $1 million has soared in the last ten years.
In 2007, just 16 per cent of properties in suburbs classed as falling within Melbourne's inner ring came with a price tag of over $1 million, but this has now increased to 90 per cent, demonstrating just how fast house prices have risen in this area over the past decade.
Meanwhile, in the so-called 'middle ring' of suburbs, the proportion of homes worth more than $1 million has risen from just two per cent in 2007 to almost half (48 per cent) today.
In the outer ring of Melbourne, there has also been a stark increase in the number of properties with a $1 million asking price, rising from only one per cent ten years ago to 13 per cent in 2017.
Overall, 154 of Melbourne's 402 suburbs were found to have a median house price of $1 million or more, with 44 additional suburbs making the list this year. These include Kingsville, Coburg and Mordialloc, all of which have recorded significant increases in property prices over the past 12 months.
The suburb with the biggest house price increase in the last decade is Clayton, which lies 19 kilometres south-east of Melbourne, and has recorded an average property price rise of 210 per cent since 2007. The median asking price in the suburb now comes in at $1.3 million.
Richmond Simpson, president of the REIV, commented: "We've had unprecedented growth in real estate prices over the last ten years, but more particularly in the last few years.
"It's mainly driven by low interest rates and also high population movements to Melbourne from interstate and overseas that's put pressure on housing."