The housing market of Victoria reached record highs over the December quarter, with metropolitan housing values surpassing $850,000 for the first time, according to the Real Estate Institute of Victoria (REIV)

This recent growth came on the back of two consecutive quarterly gains of over 3%. The last time this happened was in 2017.

House prices in Melbourne grew by 3.7%, while unit values expanded by 3.8%. For the first time, unit values in the capital city went beyond $630,000, with new benchmarks being set across the inner, middle, and outer rings.

Regional Victoria also achieved a new record after it witnessed a 2.2% growth in house prices over the quarter. Homes in the regional markets now have a median price of $422,500, the highest on record.

Units in regional areas also beat their previous record, climbing 3.2% to $307,500.

"These are outstanding figures; the Victorian real estate sector continues to soar and set new heights," said Leah Calnan, REIV president.

Established metro suburbs have also recovered their median prices. Eastern and south-eastern regions dominated the top quarterly growth list for both houses and unit, with Mitcham, Nunawading, Blackburn South, and Blackburn North all recording gains above 15% and surpassing the $1m price tag.

"Buying in Victoria is a great investment; house and unit values are growing across the entire state. Victorian real estate record growth during the December quarter will put smiles on a lot of faces; anybody who invested here is getting a great return," Calnan said.