The price rise has earnt the city seventh spot in the top growth suburbs for regional Victoria.

The revelation by the Real Estate Institute of Victoria - which saw the median house price rise from $353,000 to $394,000 - came as no shock to long-time real estate agent Brian Hancock, of Brian O'Halloran and Co.

The median price for the last quarter increased by 4.4 per cent.

"It would be the biggest price increase we've had in the past 10 years," Mr Hancock said.

Factors which have seen increased demand in city homes include the low interest rates and the government incentives for first home buyers, he said.

In addition to that, the city's title of most liveable has seen it promoted widely all over Australia.

"I think Warrnambool is doing as good as any other regional city - if not better," Mr Hancock said.

He said he believed the trend would continue with projects such as faster rail set to lure more people to the city.

"Any upgrades like that will help," Mr Hancock said.

"I think people want to come to the country for a bit of safety and fresh air."

In a good sign for Warrnambool, the other suburbs faring well appear to be closer to Melbourne, perhaps indicating buyers are willing to move further afield.

The top performing suburb was Strathdale, followed by Churchill, Strathfieldsaye, Wallan, Maffra and Newtown.

For the previous quarter, Warrnambool was 11^th in the growing suburbs list, with Barwon Heads ranked first.

REIV president Leah Calnan said property prices continued to defy gloomy predictions due to the coronavirus pandemic.

Ms Calnan said the Victorian property market had survived everything thrown at it in 2020.

"Despite six months of COVID-19, lockdowns and moratoriums, the Victorian Property Market continues to prosper with properties remaining more valuable than they were in 2019," Ms Calnan said.

"Our members have faced so many challenges in 2020, their work and efforts are evidenced in the September quarter results.

"REIV market statistics are based on results directly sourced from agents and government records and provide a true picture of Victorian real estate."

The average price change for homes in regional Victoria was 5.1 per cent, while in the city the average price change was -1.7 per cent.

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