The nation's top performing suburbs of 2010 have been identified by RP Data.
According to recent research by the company, Peppermint Grove located in Perth, Western Australia has recorded the highest median price for 2010.
With a median house price of $4.675 million, the sleepy suburb easily outshone and outpriced its other rivals including Sydney's Dawes point.
Properties in Western Australia performed very well over the course of 2010, with South Hedland located in the Pilbara region recording the highest indicative gross rental yield for the year.
Not be outshone by Western Australia, NSW's property market also achieved solid results.
Bellevue Hill in Sydney recorded the nation's highest house median rental rate for 2010, while Mosman housing market recorded the highest gross value of sales.
Speaking about the results, RP Data's research director Tim Lawless said the nation's property market had performed very well, recording an 18.5 per cent increase in home values for the year after values fell by 3.8 per cent in 2008.
But property prices are not likely to climb by 18 per cent next year, according to Mr Lawless.
"The Australian housing market is likely to remain reasonably steady over the coming year. If historic performance is anything to go by, the post-boom period between 2004 and the end of 2006 saw Australian capital city home values increase by just 4 per cent over the entire two year period," he said.
"At that time unemployment was similar to what it is now and the economy was on the cusp of a resources boom that fuelled economic prosperity."