Sydney, Perth and Melbourne show strong annual growth in home values: RP Data

Sydney home values have risen 5.9% over year to July 21, according to the latest RP Data weekly market update.

It has been the strongest performing  of the five capital city markets this year, just ahead of Perth (5.2%) and a little bit further ahead of Melbourne (4%).

Across the five capital cities, home values are up 4.1% - with Brisbane (including the Gold Coast) and Adelaide weak.

The index tracks the underlying value of residential property - other indexes track sales prices, which indicate what a vendor may or may not get on the open market depending on numerous factors such as seasonality, interest rates, demand and inflation.

The graph below shows how dwelling values have been rising since bottoming out in about May last year, though at a moderate and uneven pace.

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