Australian property prices are surging through the effects of higher interest rates, with new data showing four in five markets across the nation have posted growing values in the past quarter.

Figures published on Friday by CoreLogic showed 82.4 per cent of 4506 house and unit suburbs across the nation are seeing rising property prices, with only 17.6 per cent of areas in decline.

CoreLogic head of research Eliza Owen said it comes despite ongoing increases in interest rates – the most recent of which was unveiled earlier this month – and a slowing economy.

There are, however, divergent trends across the nation, with some areas growing faster than others, particularly across the major capitals.

“It’s often noted that Australia is not ‘one housing market’ and we’re currently seeing increased diversity in capital city market performance,” Owen said.

“That’s reflected in city-wide growth rates, the various levels of supply that’s available in some cities over others, and it’s reflected in the different suburbs we analyse.”

The strongest capital market right now is Perth, while property prices in Hobart or Darwin are either flat or falling, the latest CoreLogic analysis reveals.

Brisbane also continues to see prices rise at a break-neck pace.

“At one end of the spectrum, suburb-level analysis reflects the extraordinary growth trend across cities like Adelaide, Perth and Brisbane,” Owen said.

“In these cities, total listings levels are low, city-wide capital growth is running a bit over one per cent per month, and migration trends from both overseas and interstate favour more housing demand.”

Brisbane’s boom

In Brisbane every one of the 162 unit markets analysed by CoreLogic saw prices grow for the quarter, while of 305 housing markets prices only fell in 4 – the suburbs of Kalinga, Windsor, Macleay Island and Lamb Island.

Only three per cent of house markets in Adelaide declined over the quarter, though a much larger portion of unit markets saw values fall, at 13.4 per cent (or 9 of 67 suburbs analysed).

Across Perth, Australia’s strongest performing housing market, 98.1 per cent of house and unit markets posted higher prices over the past quarter.

Source: CoreLogic (click to enlarge).

Melbourne and Sydney at ‘mid speed’

Australia’s two largest cities – Melbourne and Sydney – have also seen prices grow over the past three months, but they’re running at a more “mid speed” pace, Owen explained.

One reason price growth in Sydney and Melbourne is lower is because prices started off higher in these markets, meaning there’s less room for growth without affordability constraints biting.

“The pace of growth across both markets has slowed from the middle of the year, when the June rate-hike surprised financial markets and many economists’ predictions,” Owen said.

“Currently, growth in Sydney markets are strongest across relatively expensive house markets, with Five Dock houses topping the three-month capital growth ranking (up 8.4 per cent).

“In Melbourne, it was the more mid-priced unit market of Moorabbin which topped the list, increasing 7.4 per cent.”

Hobart and Darwin more affordable

Australia’s two smallest capitals are experiencing different market conditions to other cities, with the CoreLogic analysis showing 41 per cent of house markets in these cities saw prices fall.

Overall prices are still rising slightly or are flat across both cities, but Owen said growth trends have been shaky and total listings are actually up 47 per cent on the five year average, boosting supply.

“[Hobart] has seen value falls recorded in three of the past six months,” Owen said.

“Declines across Hobart houses were led by a -3.2% fall across the relatively expensive market of Sandford.”

Property prices have also been relatively flat in Canberra, particularly for units where 32 of 39 markets analysed over the Octover quarter saw prices fall – the steepest being O’Connor (-4.1 per cent).