Melbourne's property market continues to surge, with the median price breaking $700,000 mark for the first time ever, as 16 more suburbs have joined the $1 million median price bracket.

The metro Melbourne median house price of $706,000 for the three months to June 30 was up from $671,000 in the March quarter, representing a quarter-on-quarter increase of more than 5 percent, REIV data shows. 

REIV Chief Executive Officer Enzo Raimondo said the last time a quarterly increase was this great was in late December 2014.

“A number of factors have contributed to the strong result," said Raimondo. "A record number of auction sales in the first half of the year, low stock on market, high levels of migration and record low interest rates have been good news for sellers.”

Growth was widespread across Melbourne, with inner suburbs recording an increase of 6.2 per cent, and homes in middle and outer suburbs increasing 5 per cent.

The number of million dollar suburbs across Melbourne skyrocketed to 78 this quarter – 16 more than in the previous (March) quarter. “These ranged from Abbotsford in the inner north, to Fairfield in the north-east, to Heidelberg in the outer east and Hughesdale in the south-east,” said Raimondo.

Regional Victoria also had price increases, with the median price of a home in regional Victoria also increasing in the June quarter, up 1.5 per cent to $346,000.