Australian capital city property prices up 7.9pc in 2014

Combined capital city home values jumped 0.9 per cent in December, according to the CoreLogic RP Data Home Value Index, taking the overall annual increase to 7.9 per cent.

Over the final quarter of 2014, capital city home values increased by 1.6 per cent, with Perth (+2.8 per cent), Sydney (+2.3 per cent) and Brisbane (+1.8 per cent) recording the greatest quarterly gains, while values fell in Darwin (-1.7%) and Canberra (-3.4 per cent).

Despite the positive result across most cities, though, the annual rate of capital gain across Australia’s capital city housing market has continued to slow.

The capital gain on houses compared to apartments was higher, with house values gaining 8.4 per cent over the calendar year compared with a 5.1 per cent increase in apartment values.

According to Mr Kusher, detached housing remains in high demand despite the higher price point: "Based on the median price across the combined capital cities, houses are attracting a $100,000 premium over apartments."

"The slowing annual growth rate is further evidence that the housing market is losing some steam with combined capital city home values increasing by 9.8 per cent over the 2013 calendar year compared to a more moderate 7.9 per cent increase in 2014."