Property values rose 2.3 per cent nationally over the past month, resulting in a 3.5 per cent gain for the first quarter of the year.
With the exception of Perth, every capital city recorded a house value rise over the past three months, according to the RP Data Rismark March Hedonic Home Value Index Results report.
In Adelaide, home values increased by 1.2 per cent over the past quarter — 1.4 per cent in the past month.
Melbourne recorded the strongest value growth for the quarter, up 5.4 per cent, and Sydney and Hobart values rose by 4.4 per cent and 4.7 per cent respectively.
RP Data research director Tim Lawless said half of Australia’s capitals posted record high property values, but said he expected value growths to slow during the coming months.
“Over the long term, I don’t believe such a strong pace of growth can be sustained,” Mr Lawless said.
“We expect housing market conditions to cool down as the year progresses.
“If the pace of capital gains doesn’t slow, we may see higher interest rates realised much earlier than previously expected.”
Adelaide’s median home value is currently $390,000.
It posted a year-to-date value gain of 1.2 per cent, a year-on-year increase of 4.6 per cent and Adelaide’s average year-on-year total return sits at 9.2 per cent.
Adelaide houses are currently earning homeowners an annual rental yield of 4.3 per cent, and units are reaping 4.7 per cent.
Rismark managing director Ben Skilbeck said favourable weather had helped drive success over the past quarter.
“March and September have a history of being comparatively strong seasonal months for dwelling value changes,” Mr Skilbeck said.
“As such, there should be little surprise that, in the presence of high auction clearance rates and in the absence of any major economic changes, the March month delivered materially stronger performance than the flat February result.”
Luxury housing was the best performing sector of the market, with premium properties rising 7.2 per cent over the past six months.
The affordable quarter of the market experienced a value rise of 4.9 per cent for the same period.
HIGHLIGHTS OVER THE THREE MONTHS TO MARCH 14
Best performing capital city: Melbourne +5.4 per cent
Weakest performing capital city: Perth -0.6 per cent
Highest rental yields: Darwin houses — gross rental yield of 5.9 per cent and Darwin units at 6.2 per cent
Lowest rental yields: Melbourne houses with gross rental yield of 3.3 per cent and Melbourne units at 4.1 per cent
Most expensive city: Sydney with a median dwelling price of $630,000
Most affordable city: Hobart with a median dwelling price of $338,000