The suburbs, which all belong to the 3037 postcode, are bound by Keilor Downs to the east, St Albans, Kings Park and Burnside to the south, Caroline Springs to the west and Taylors Lakes and Calder Park to the north.
The precinct is home to the massive Watergardens shopping centre.
According to the REIV, Delahey’s median house price for the year ended December 31, 2007, is $266,500, up 10.8 per cent since last year.
Values in Sydenham over the same period increased 7.9 per cent to $300,000.
Taylors Hills, which is still relatively new, is not yet included in REIV research.
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.
The Delahey precinct is expected to be hit hard by successive interest rate rises in early 2008, and is one of the areas “on notice” for bank repossessions.