Capital cities record rise in property values

SYDNEY has retained its position as the nation's most expensive city to buy property, but Perth has experienced the most growth in dwelling values over the past month.

The price of dwellings in capital cities across Australia enjoyed a significant spike last month of 1.3%, the best result since 2010.

According to RP Data, every capital city recorded a rise in dwelling values in March expect for Adelaide where conditions stayed the same.

But Perth came out on top with the highest level of growth after seeing dwelling values grow by 3.4%.

Hobart and Darwin also relished in dwelling value increases of 2.5% and 2.4% respectively for March.

RP Data research director Tim Lawless said since the capital city housing market bottomed out last May, dwelling values had risen by 4.7% after falling 7.4% in 2010.

"The most significant recoveries have been recorded across Darwin where values have risen 13.9% since bottoming out in January last year, and Perth where values are up 9.4% since the market trough in November 2011," he said.

Mr Lawless said both the cities recorded rental growth higher than 10% year on year.

RP Data shows Sydney is the most expensive city to live in with a median dwelling price of $550,500.

At the opposite end of the spectrum is Hobart, where a house is snapped up for a median price of $332,500.