Melbourne leads australian property price rise

Melbourne is leading property price rises in Australia, according to RP Data.

The latest index shows that property values jumped 6.4 per cent in the three months to August 2014, 1.4 per cent higher than Sydney, which has also been driving house price growth in recent months.

Capital city dwelling values moved 4.2 per cent higher, the strongest capital gain over the three months of winter since 2007.

According to RP Data research director Tim Lawless, Sydney and Melbourne housing markets are driving these two tier conditions. "Over the latest growth cycle we have seen Sydney dwelling values increase by 27.2 per cent and Melbourne values up by 19.5 per cent. Sydney and Melbourne were also the strongest performing cities during the 2009/10 growth cycle. Since the beginning of 2009, we have seen values rise by a cumulative 50.1 per cent and 46.1 per cent respectively in Sydney and Melbourne. Looking at the remaining state capitals over the same time frame, the next best performer was Perth where values are now 15 per cent higher, followed by Adelaide at 9.9 per cent, Brisbane with 5.3 per cent and Hobart where dwelling values are actually 1.5 per cent lower.

"With today marking the first day of Spring, we are expecting listings numbers to rise over the coming month which will provide a real test for the housing market."