There were 42 suburbs in Victoria with a median price tag in excess of $1 million in the 12 months to May, according to REIV figures.
The most expensive suburb was East Melbourne, where the median was $2.6m. Deepdene came second on the list with a median of $2.5m and Toorak third at $2.2m.
REIV says Toorak may have a median lower than East Melbourne or Deepdene, but it has a significantly higher volume of very high priced sales as well as the most expensive properties in the city.
The real estate group anticipates that mortgage brokers in the inner eastern suburbs will continue to see a rise in the number of million-dollar sales.
There have, however, not been any units with this price tag so far, although a recent sale in Malvern valued at $987,500 was not far off the mark.
REIV says that all of the high-priced suburbs have one thing in common: they all have frontage to the Yarra River.
Other areas that are attracting big spenders include Eaglemont, Ivanhoe East, Ivanhoe and Alphington.