Melbourne's bayside suburb of Carrum entered the $1 million club for the first time in the last quarter of 2018, following a ten per cent increase in the median house price.

It was the only suburb to join the 127-member $1 million club in the October to December quarter of last year.

Real Estate Institute of Victoria (REIV) President Robyn Waters said its bayside location and infrastructure boost has contributed to the rise in property values.

“Carrum’s bayside location and existing infrastructure including a train station and schools make it a popular choice for families, young people and retirees,” Ms Waters said.

“The new Skyrail may also have contributed to this boost in property values as well as an increase in culinary and entertainment options in Carrum and its neighbours such as
Patterson Lakes and Chelsea."

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Pictured: 6/693 Nepean Highway, Carrum. For sale by Daniel Wright and Michelle Cahir of Buxton Chelsea, as seen on Thehomepage.com.au

The bayside suburb of Elwood was another top performer, with its median house price rising from $1.73 million to $2.07 million.

There were 10 suburbs with a median of more than $2 million as of December last year. Unsurprisingly, Toorak came the closest to tipping into the $3 million club, with a median house price of $2.8 million.

Carlton broke into the $2 million club for the first time, after its median house price rose a whopping 36.9 per cent in the December quarter.

Carlton joins Toorak, Armadale, Hawthorn, Black Rock, Albert Park, Malvern, Elwood, Balwyn and Canterbury in the top 10 most expensive Melbourne suburbs for median house price.

Brighton was nudged out of the top 10.

According to CoreLogic data, the number of suburbs with a million dollar median price tag has dropped significantly over the past year, down from 170 suburbs to the current figure of 127.

The fall in million dollar suburbs has been greater in Melbourne than in regional Victoria.

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But agents say there's still plenty of demand at the top of the market.

"The market seems to have gained momentum compared to late 2018, with properties placed $5 million or above still in high demand," agent Justine Harris of RT Edgar Toorak told WILLIAMS MEDIA.

"2019 has kicked off with increased numbers through our open for inspections compared with late last year, which has resulted in some properties being secured prior to their auction or expressions of interest closing dates.

"Our office has been receiving strong enquiry for prestige homes in the areas we cover, with buyers ranging anywhere from those overseas, to locals simply wanting to upgrade their own homes within the same area."

Related reading:

"Strong enquiry" for prestige homes in Melbourne

Why industry experts are saying now is the time to buy in Melbourne

These are Melbourne's top price growth suburbs