To the west is Black Rock and Sandringham, to the south is Beaumaris and Mentone, while to the east is Heatherton and to the north, is Highett and Moorabbin.
Cheltenham is home to some of Melbourne’s best golf courses including part of the Royal Melbourne Golf Course, the Victoria Golf Club and the Cheltenham Golf Club.
It is also home to a thriving retail hub around the Cheltenham train station, Charman Road and the Nepean Highway.
According to the REIV, Cheltenham’s median house price for the year ended December 31, 2007, is $520,000, up 25.3 per cent since last year.
By comparison, median values increased 12.6 per cent for homes in metropolitan Melbourne, to $425,000.
The REIV annualised median figures are considered more statistically reliable than the quarterly figures released throughout the year, because they include a much greater sample of sold properties.