Banyule has mostly defied the statewide downward trend with a rise in most suburbs, particularly Ivanhoe, Macleod, Montmorency and Rosanna. According to REIV data, Montmorency was the standout performer with the median sale price jumping 19 per cent, from $553,000 to $660,000.

Daniel Sheean, a director at Hocking Stuart Greensborough, said Montmorency provided a more affordable alternative for buyers originally considering Heidelberg and Rosanna. "Were Street and its cafes have brought people in from a fair distance away and they've really picked up on the whole vibe of the area. There are certainly buyers who would live in Montmorency that would not live in the immediate surrounding suburbs," Mr Sheean said.

However median sale prices in Heidelberg West, Heidelberg Heights and Watsonia fell significantly between December and March. The median price in Heidelberg West fell almost 18 per cent, from $486,000 to $400,000, in the March 2011 quarter. The fall is even more considerable (23.3 per cent) when compared to June 2010, when the median price was $522,000. Heidelberg Heights fell 7 per cent to $550,000 while Watsonia experienced an 8.4 per cent drop to $500,000.

Greensborough had a slight drop in the March quarter after strong rises throughout 2010. Unit prices fared better, with the median price rising about 4 per cent to $430,000.

Yet in Bundoora, where house prices have remained relatively stable, the median unit sale price dropped 13.25 per cent to $347,000.

Mr Sheean said Greensborough was popular with investors because of new infrastructure projects, while Bundoora has had an influx of cheaper student accommodation.