Capital city dwelling values rose 1.4% across the country, according to RP Data Rismark's September Home Value Index.
It was the largest month-on-month growth since March 2010, leading research director Tim Lawless to claim a recovery is "underway."
Adelaide took the lead with a 2.4% increase, followed by Perth at 1.6%, Sydney at 1.5%, Melbourne at 1.4% and Brisbane at 1.1%.
Over the quarter, however, Darwin values climbed 3.9%, making it the strongest capital city in Australia for Q3.
The northern city also had the highest rental yields for both detached and unit dwellings.
Hobart continues to falter, showing another month of declining property values. It is now Australia's weakest performing capital, according to RP Data.
RP Data’s research director Tim Lawless said the increasing values should have encouraged the RBA to sit tight, however it dropped the cash rate yesterday to 3.25%.
Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker
Top Suburbs :
Get help with your investment property
Do you need help finding the right loan for your investment?
When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.
Just fill in a few details below and we'll then arrange for a local Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus and appointment is free.
We value your privacy and treat all your information seriously - you can check out