Sydney and Melbourne continue to outperform the country’s other capital cities in property price growth.
According to RP Data’s latest Hedonic Home Value Index, Melbourne recorded the greatest increase in property prices, climbing 8.4 per cent over 2010, while Sydney was not far behind, recording 6.6 per cent growth.
Despite Melbourne’s strong performance, Sydney remains the most expensive capital city, with the median house price sitting at $525,000, followed by Canberra at $510,000.
RP Data’s director of research Tim Lawless said almost all of the growth experienced in capital city home values was experienced in the first quarter of 2010, when dwelling values grew by 3.6 per cent compared with 4.7 per cent over the entire year.
“The flat lining in Australian home values since early 2010 is an encouraging sign from a valuation and fundamentals perspective. We are seeing rapidly rising household disposable incomes combined with no price growth over an extended period of time,” he said.