Charter Keck Cramer's national land sales program shows Melbourne was the only Australian city to increase sales in the December quarter, even though a state election occurred midway through the period; an event that would usually freeze activity.

Annual sales increased to 12,665 in 2014, up 43 per cent, compared with 2013 when 8838 lots sold. It is slightly lower than the 46 per cent increase in volume recorded in 2013 but that level followed two years of falling sales.

The median land price increased 6 per cent annually to $210,000 (a quarterly increase of 3.3 per cent), the highest point since 2012.

Charter Keck Cramer director Robert Papaleo said there would be some upward pressure on prices this year, driven by last week's interest rate cut and the low three months' worth of unsold stock being held by developers.

Research by land sales agent Oliver Hume shows similar results.

National research director Andrew Perkins is also forecasting probable price increases.

"Prices have certainly hit the bottom of the current cycle and we're expecting them to step up this year. The market's been good," Mr Perkins said.

A record 37 new projects, covering 32,000 lots, hit the market in 2014, Oliver Hume figures show, and there will be no let-up in 2015. Land supply is expected to reach about 300,000 lots this year, which constitutes 16 years' worth of supply based on current absorption levels.

Listed residential developer Stockland has set a cracking pace, launching the 11,000-lot $4.6 billion Cloverton project in Kalkallo in Melbourne's north along the Hume Highway.

Low interest rates and high population growth are driving the growth, which is building despite poor consumer confidence levels.

Oliver Hume project director Gerrard Ellis said "the lead-up to and drop in the cash rate has had an immediate impact across all growth corridors".

Metropolitan Melbourne gains about 80 per cent of the 100,000 new migrants each year; 60 per cent of whom buy, and build a house in the outer suburban growth corridors.

"That works out to about 15,000 to 16,000 new homes a year," Mr Perkins said.

Consumer demand for new property has also reduced the value of rebates offered by developers – for landscaping or other incentives – to $5000 from $7500, the research shows.

Mr Perkins said only 40 per cent of projects offered a rebate to purchasers.

Oliver Hume's net median price rose 3.3 per cent in the December quarter to $204,000, a price not seen since the start of 2012.

The most expensive part of Melbourne is Casey in the south-east, where land is fetching a median price of $226,000. Hume in the north has overtaken Wyndham in the west to record the second most expensive price of $212,500 but high rebates of $8500 are offered.

Prices fell in the Whittlesea and Wyndham areas to $183,500 and $200,500, respectively.