The drug ice is overtaking heroin as the most traded illicit substance in an area traditionally viewed as Melbourne's heroin heartland.

Police report that crystal methamphetamine is being dealt in large quantities around Victoria Street in Richmond, with the drug now rivalling heroin in an even split.

An ice user. Credit:Justin McManus

Local officers are scratching their heads over how to manage the city of Yarra's decades-long drug problem, which has not abated despite a 38 per cent rise in charges for drug trafficking and possession in recent months.

The latest figures released by police show a spike in drug crimes (up 42.7 per cent), car theft (up 39per cent) and property crimes (up 17 per cent) in Richmond, as domestic violence, alcohol-fuelled violence and traffic offences take priority.