Real Estate Institute of Victoria figures show Huntly was the stand out performer, with the median price jumping from $383,000 at the end of 2020 to an astonishing $555,000 at December 31.

Other Bendigo suburbs to register significant increases include Ironbark (34.9 per cent), California Gully (35.3 per cent), Quarry Hill (35.2 per cent) and North Bendigo, (32.5) per cent.

Across regional Victoria, the median house price recorded its largest annual increase since 2001, up 27 per cent reaching a record breaking $565,000 over the year.

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Units and apartments in regional Victoria also grew, achieving an annual growth of 19.6 per cent bringing the median price to $395,950.

In the final three months of 2021, the median house price in Kennington jumped by almost 11 per cent, while in Flora Hill it was up 8.2 per cent, and in Spring Gully the price increased by 9.8 per cent.

Bendigo REIV branch chairman Matt Bowles said while every suburb was experiencing strong price growth, the inner suburbs close to the CBD and Bendigo Health had become more gentrified and therefore benefited most.

"I think everywhere is hot at the moment," Mr Bowles said.

"People are buying by price, rather than by suburb."

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He said the ongoing shortage of housing stock had exacerbated the situation, and that the dire shortage of land to build on was also having an impact on the local market.

REIV president Adam Docking said the data reflects the enduring attraction of regional Victoria as a lifestyle choice following two years of COVID-19 restrictions.

He said the impact, if any, of the Omicron surge on the real estate market was yet to be fully understood.

"At this stage it's too early to tell. Virus safety is front-of-mind and Victorians are well-adjusted to the protocols they need to prepare for when attending inspections," said Mr Docking.

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"Major factors influencing the residential real estate market continue to be low interest rates, lifestyle choices as more people work from home and pent-up demand after the series of lockdowns over 2020 and 2021."

Mr Docking also emphasized the need for government to improve infrastructure investment to support the unprecedented growth in regional areas.

Mr Docking said he expects real estate markets will soon begin to stabilise as some of the listing volume issues are addressed and buyers have more to choose from.

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