A big jump in what Victorians paid for houses and apartments in 2014 has put the spotlight firmly back on whether Australians are being priced out of home ownership.

The Valuer-General on Wednesday released his annual report on what Victorians paid for houses last year.

The report – which tracks home sale prices by suburb over a decade – showed the value of all property sales in Victoria had jumped by 12 per cent last year. Since 2004, they had risen by 70 per cent.

And it showed houses in some suburbs of Melbourne had risen in value by more than 50 per cent in a year.

Planning Minister Richard Wynne said the rapid rise in house prices was concerning. "I don't celebrate rising house prices the way the federal government does," he said.

Overall, the report indicated the median Victorian house price had risen from $270,000 in 2004 to $460,000 last year. For metropolitan Melbourne it rose to $550,0000 last year.

The city recorded a 6 per cent rise in house prices, and apartments 2 per cent. In country Victoria, house prices grew by just over 3 per cent.

The suburb that recorded the biggest house price jump was St Kilda West, where, with a small number of sales, the median price jumped by 58 per cent, from $1.14 million to $1.8 million.

Asked if a bubble was forming in pockets of inner Melbourne, where houses were trading for rapidly increasing prices, Albert Park real estate agent Adrian Wood said no.

"I don't see a bubble at all – the demand far outstrips the supply and it's a very stable market," said Mr Wood, who has sold in the area for over 15 years.

In February he sold a three-bedroom house at 40 York Street, St Kilda West, for $2.26 million – a long way from the $17,000 three-bed houses averaged in the street in 1976, the last time the property changed hands.

"It's been trending upwards here since 2005," said Mr Wood, who recently looked at historical sales data for St Kilda West and found there were only 409 houses in the area, and that an average of just 13 were traded each year.

Other suburbs where house prices boomed in 2014 were Mount Dandenong, which jumped by 40 per cent to a median price of $630,000, Caulfield East, which jumped by 36 per cent in value and Middle Park, which rose by almost a third to a median of $2 million.

Apartments in Melbourne also rose, though not as dramatically, with the median sale price $455,000, up just over 2 per cent. The highest price rises for units was in Burnside Heights next to Caroline Springs, Ashburton and Macleod.

Not everywhere went up, though – 47 of 399 areas tracked by the report showed a drop, topped by Cape Schanck and East Melbourne, which both fell by a quarter. A similar fall was recorded in apartment prices in Cremorne, the small suburb between Richmond railway station and the Yarra River.

Economists are warning a correction in the nation's house prices is likely over the next two years, although further rises are expected over this financial year.

Forecaster BIS Shrapnel this week predicted the housing boom was coming to a gradual end, although Melbourne prices were still set to rise by around five per cent between now and mid-2016 before falling.

It is a far cry from the warning issued last month by investment analysts LF Economics, who told a parliamentary inquiry into property prices a "bloodbath in the housing market" appeared a near certainty, due to the magnitude of falls needed for house prices to "reflect economic fundamentals".

The Valuer-General's report showed middle-ring suburbs were rising rapidly in price, and the Planning Minister said this proved people wanted to live in areas near good schools and infrastructure.

Mr Wynne said the Napthine government's role in restricting what could be built on land in much of Melbourne's inner east had not helped manage price rises.