Australia, like many other countries around the world, has seen a boom in property prices over recent years, and the price of property has rocketed in the space of just a few years. A recent report has shown how property prices in the Melbourne area have soared in the space of just four years.

According to figures the value of houses in Melbourne has soared by 145 percent in the last four years. The data was released by the Australian Bureau of Statistics, which showed that in the Melbourne area the average value of a home increased from $284,600 in 2005 to $697,500 in 2009. During the four years period the second and third biggest house price increases were seen in the municipalities of Queenscliffe and Port Phillip.

A spokesperson for REIV, Robert Larocca, said that whilst property valuations provided an effective indicator of the real estate market the figures were not set in stone. He stated that homeowners had to consider the fact that whilst the increases in property values meant that they would get far more for their property than they would have several years ago it also meant that they would be paying far more for the property that they were buying in its place.

He stated: "Home values may have gone up, but so has the one that you would move into and then you are looking at stamp duty. The council valuations are struck to apportion how rates are paid ... the actual sale is influenced by how many other properties are on the market, when you are seeking to sell your home, and the overall market."

He also said that the huge increase in property prices in the area was a reflection of the number of upmarket houses that had been built over recent years. In Queenscliffe property prices saw the highest average value outside of the city in 2008/2009, with property prices increasing by 83 percent to an average of $515,500. Larocca said: "It's a very cute seaside town. Like most parts of Melbourne that have bay frontages the prices have increased, but it is a smaller area and it's a bit more exclusive."

The increase in house prices will not necessarily benefit all homeowners, as many will get more for their property if they sell but will also pay more for another home if they are moving on. However, there are some people that will benefit financially on a huge level, such as those that have more than one property and are simply selling one of their properties, or those that are moving in with family or a partner, hence their reason for selling the home.

However, whilst property prices have soared over recent years some industry experts have predicted that they may fall again in the future as a result of unsold stock levels increasing, which stems partly from potential buyers struggling to get the finance that they need in the current climate.