The cheaper outer suburbs are starting to out-perform the inner-city areas on price growth in Melbourne, according to the latest figures from the Real Estate Institute of Victoria.

The median price for the more affordable segment of the market rose 5.1% in the September quarter. Sunshine, north-west of the CBD, recorded a 26% rise in its median price from $241,000 to $335,000 during the quarter.

Overall, Melbourne's median price rose 3.9% over three months to reach $431,000 - providing an annual rise of 13% or $50,000 in the city's median price.

There are now 15 Melbourne suburbs with a median price above $1 million, including new entrants Camberwell, Beaumaris, Glen Iris, Malvern East and Brighton East.

Apartment values are also showing strong growth, with the median price for Melbourne units rising 5.1% to $368,000 in the September quarter.