The report from property market analysts Propertyology shows homebuyers who invested in Bendigo 15 years ago would have made more money than investing in Melbourne at the same time.

It includes a historical property market performance of each of Australia's 550 local government areas (LGAs) between 2000 and 2014.

Propertyology calculates ‘total return’ on average annual growth rate plus rental yield.

Despite ranking 209th, Bendigo's rating was enough to be included in the top 20 per cent when compared with the rest of Australia.

Luke Goggin Real Estate director Luke Goggin said he was surprised and a bit sceptical, but also encouraged by the finding Bendigo properties had earned a higher return on investment than those in Melbourne.

"Bendigo has been very solid - traditionally we double every 10 years," Mr Goggin said.

"You buy something for $200,000, in 10 years it will be around the $400,000 mark.

"Recently, I would have said properties have consistently gone up about 10 per cent a year, but better than Melbourne, I'm not sure of that."

Mr Goggin said he knew of Melbourne properties which had risen in value by $200,000 in three to five years.

Mawby Property director Darryn Mawby was similarly surprised at the Bendigo-Melbourne comparison.

“But I thought we would have been a lot higher than that (209^th among LGAs),” he said.

“Bendigo has regularly been recognised as one of the most vibrant real estate markets in regional Australia.

“We don’t tend to get the highs and lows and swings you get elsewhere (in Australia).

Mr Mawby said while returns on Bendigo properties had been consistently good in the past decade, some of the return in Melbourne had been “mind-boggling”.

The report says the median price for a house in Bendigo has increased at an average of 8.3 per cent - from $98,500 at the start of 2000, to $320,000 at the end of 2014.

Average rental yields of 4.7 per cent resulted in a total return of 1.7 per cent.

Central Victoria rates strongly, with Mount Alexander Shire the best ranked at 92. Buloke Shire (134th) also ranks in the top 20 per cent.

Outside the top 20 per cent are Loddon (240th), Macedon Ranges (260) and Campaspe (357th).

Proving population mass isn't the be-all to property market performance, Hindmarsh, which includes the Wimmera centres of Dimboola, Nhill, Rainbow and Jeparit and population of less than 6000, is Victoria's top performer, ranked 26th nationwide.

Confounding Bendigo agents, including Mr Goggin, Melbourne finished an underwhelming 377th out of 550 LGAs.

Propertyology market analyst Simon Pressley despite Bendigo's median house value increasing by a modest 1.6 per cent in the past year and a 4  per cent vacancy rate, the outlook was sound.

"The new Bendigo hospital will create extra jobs for the Bendigo economy and the regional rail link increases access," he said.

"Propertyology anticipates heightened investor activity in strong regional centres like Bendigo over the next couple of years."

Mr Goggin said the Kangaroo Flat and Strathfieldsaye housing markets had been among the best performed in recent years.

"Eaglehawk still sells quickly because they are affordable, and the city is dynamite," he said.