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Which is Australia's top performing property market?

How are property prices performing in your city this year?

Hobart has been by far the strongest-performing capital city for property values over the first quarter of 2016, according to the latest CoreLogic RP Data figures.

The Tasmanian capital saw a remarkable 6.5% increase in dwelling values over the three months to 31 March. No other capitals have come close to this growth for the quarter, with the next best performers, Adelaide and Darwin, both showing growth of just 2.4%.

CoreLogic RP Data numbers continue to point to moderation in the major property markets of Melbourne and Sydney, up 2.2% and 2% respectively over the quarter.

Property prices in Brisbane have been flat in 2016 so far, while going up 1.8% in Canberra and down 0.9% in Perth.

The slow start to 2016 in most capitals has kept dwelling price growth across the combined capitals to 1.6% for the quarter and 6.4% in the year to 31 March, the slowest annual rate of housing market capital gains since September 2013.

Melbourne remains the market showing the strongest annual growth, up almost 10% year-on-year (YoY).

“The housing market has been losing momentum since July last year, when capital city dwelling values were increasing at the annual rate of 11.1%,” said CoreLogic RP Data head of research Tim Lawless.

“The March quarter rise in capital city dwelling values is in stark contrast to the first quarter of 2015, when values increased by 3%, which is almost double the current pace of quarterly growth."

Lawless also argues Melbourne's property market has been much more resilient than Sydney's, where moderation in the rate of capital growth has been the most pronounced. The NSW capital has shown YoY growth of 7.4%, well down from a high of 18.4 per cent per annum in July last year.

Despite relatively disappointing price growth in most capitals outside Hobart, however, Lawless also highlighted that "no indicators have emerged to suggest that dwelling values are starting to show sharp declines in any of the capital cities".

"Sydney and Melbourne growth rates are moderating after a strong cycle of growth, while other cities are recording minimal shifts higher and lower", he said.

CommSec chief economist, Craig James, agreed. "Home prices should always be analysed over the long term. Prices surge from time to time, and then there are the inevitable corrections or periods of flat growth in prices," he said. 

"Overall there isn’t anything remarkable in current home price trends." 

Hobart remains the most affordable capital city property market with a median dwelling price of $341,500, though it's closing the gap between it and the next most affordable capital, Adelaide.

Sydney remains by far the most expensive capital, with its $730,000 median dwelling price more than twice that of Hobart's.

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