KENSINGTON was ranked Melbourne's third-strongest growth suburb with a 12 per cent quarterly jump in median price, from $645,000 in the September quarter to a $725,000 in the December quarter.
The Real Estate Institute of Victoria released the December 2011 quarter statistics last week, showing increased stability compared to the September quarter, when figures showed an average median price drop in metropolitan Melbourne.
REIV chief executive Enzo Raimondo credited two interest rate cuts last year for the increases and improved stability.
Mr Raimondo said overall transaction numbers were significantly lower compared to the same time the previous year.
Clifton Hill, Carlton North, Brunswick East and West all recorded fewer than 30 sales in the quarter.
North Melbourne also recorded fewer than 30 sales, but the median price increased 11 per cent to $915,000 in December.
Suburbs including Fitzroy North and Thornbury recovered ground lost in the September quarter. Fitzroy North's December median was $850,000, up 5 per cent from $807,500 in September.
Over the course of 2011, Thornbury's price dropped 11 per cent but recovered 1.3 per cent in December, resting at $687,000 at the end of the year.
In apartment prices, North Melbourne stood out thanks to a 17 per cent quarterly increase and 16 per cent overall annual change. Median North Melbourne apartment prices increased from $430,000 in September to $505,000 in December.
The median house price in metropolitan Melbourne was $550,000, up nearly 2 per cent from the $540,000 September median.
The REIV did not expect significant change during the March quarter, traditionally a quiet time of year for property sales.