Melbourne's "hottest" suburb is an ever-changing title. Right now, it's Fitzroy - a suburb that has reached the pinnacle of price and cachet for those who do not want (or cannot afford) to buy in the inner-east.

Fitzroy (or as agents now refer to it, Fitz-royalty), has become the yardstick for the huge change occurring in Melbourne's suburbs and property market. It was the one that started the creep of cool into suburbia and opened up the inner-north as a viable and highly desirable place to live.

But what's next? Fitzroy has well and truly taken off, and its neighbours Carlton and Collingwood (a suburb that 20 years ago was perceived by many as an unthinkable place to live) have quickly followed suit.

Looking at these changes, one can conclude that a suburb becomes hot property when it has a diversity of residents and housing typologies - a phenomenon that's occurring across the city's inner-west, inner-north and outer-east.

The rising median house price of Preston ($615,000 in 2014, $853,000 today), nine kilometres north of the central business district, is believed to be result of the suburb's shifting demographic. Here, young people and families priced out of nearby areas are now joining the suburb's longstanding Greek and Italian residents.

Partner at Nelson Alexander Northcote, Luke Sacco, has observed this shift firsthand throughout his 15 years selling in the north. He says the extension of businesses along High Street (which runs directly through the centre of the suburb) in particular has brought a new vibrancy to Preston.

"Shops that were closed are now cafes, bookshops and barbers, and the more industrial businesses have moved out of Preston to Reservoir where the land is cheaper," Sacco says.

He says recent buyers to the area have helped develop a greater sense of community atmosphere.

"Young families are moving in for the same reason why it became first populated in the '50s and '60s - because it's affordable. It's a real mixture and more of a community now," Sacco says.

In the western suburbs, Footscray (five kilometres from the CBD) is leading the way in terms of cultural and demographic changes, with a variety of housing options available.

In his 24 years working in the inner-west, director of Jas Stephens, Craig Stephens, says the price growth in the area over the past three to five years has been most significant. The median house price is now $757,000, up from $550,000 in 2014.

"We're now seeing homes breaking the $1 million mark, with renovated homes going for up to $2 million," Stephens says.

"There's a massive turnover of properties in the west - every seven years compared to every 21 years in the eastern suburbs ??? It's because we have period style homes that are affordable and allow people to get into the property market for the first time.

"It's very cosmopolitan and multinational, with a variety of people, cultures, nationalities, cafes, neighbours and diversity in the way people renovate their homes."

Impetuses for the shifting demographic have been the development of offices in Docklands, which is just a short bicycle commute away, the upgrade of West Footscray train station, and the increase in arts and crafts street festivals.

For buyers seeking a similar place to call home, Stephens point to Sunshine, Maidstone, West Footscray and Kingsville.

"People tend to gravitate to Williamstown and Newport, or Seddon and Yarraville, and are then disgruntled with what they can afford. People come here and they are pleasantly surprised by the value for money, and still with a good quality lifestyle," Stephens says.

Those loyal to the east and south-eastern suburbs are being increasingly drawn to Ringwood (23 kilometres east of the CBD) and Frankston (41 kilometres south-east of the CBD).

Director of Hocking Stuart Frankston, Aaron Froling, likens the Frankston boom over the last four months to a fairy tale. The suburb's current median house price is $477,000, up from $345,000 in 2014.

"I sold properties last year thinking the market had peaked, but if I sold them today I'd be $300,000 better off [collectively in selling prices]," Froling says.

"People who wouldn't spit on Frankston six months ago are now flocking here. It's changing overnight."

In the last eight weeks alone, Froling estimates some properties have gone up $100,000 in capital growth.

"When we used to meet with vendors they would always think their house was worth more than it was, but now they're undervaluing them, which is why a good agent is essential??? It's never happened in my entire career," he says.

Froling says the lifestyle of Frankston has always been a drawcard for buyers, the only thing standing in the way was its outdated negative reputation.

"The only thing holding us back was the stigma, and now that's being smashed," he says.

"I'm aware we're not in isolation, the whole market is booming, but when you consider the infrastructure of EastLink and Peninsula Link, and that we're on the beach, it's a no brainer."

Feature property

17 Tennyson Street, Seddon

$1 million-$1.1 million
3 bedrooms, 1 bathroom

Built in 1916, this sweet freestanding Edwardian cottage has been given a swish makeover. The recycled brick feature wall in the kitchen and meals area is a showpiece, and references the postcode's industrial history. The kitchen has been delivered the gourmet treatment, and the space spills, via bifold doors, to a deck and a neat garden. The central bathroom has a modern freestanding bath and an open shower. The train station is close enough to walk to before the foam cools on a takeaway coffee from a nearby Charles Street cafe. Agent Rita Galati says Seddon was once a "hard sell", but since neighbouring Yarraville took off, that has changed and Seddon is now highly sought but tightly held.