Melbourne was home to the largest residential property price hikes in 2016, outgunning Sydney.
Homes in Melbourne were an average of 10.8 per cent more expensive in December than they were a year earlier, according to the Australian Bureau of Statistics' Residential Property Price Index.
Sydney's home prices rose 10.3 per cent, followed by Hobart (8.8 per cent) and Adelaide (4.1 per cent), while Darwin was the softest market, as prices fell seven per cent.
Overall, capital house prices rose an average of 7.7 per cent in 2016.
NSW is still by far the most expensive state to buy a house, with the average price at $865,000 in December, up from $535,000 just five years earlier.
The average price in Victoria stands at $690,000, up from $507,000 in 2011.
Recent auction activity has been strong across the capital cities, with the national clearance rate at 76.2 per cent in the week ended March 19, up from 75.1 per cent a week earlier and 68.8 per cent a year ago, according to the latest data from CoreLogic.
MEDIAN CAPITAL CITY HOME PRICES
Sydney - $940,000 for a house, $740,000 for a unit
Melbourne - $700,000 for a house, $520,000 for a unit
Canberra - $628,000 for a house, $403,500 for a unit
Darwin - $520,000 for a house, $340,000 for a unit
Perth - $510,000 for a house, $421,000 for a unit
Brisbane - $508, 000 for a house, $385,000 for a unit
Adelaide - $430,750 for a house, $325,000 for a unit
Hobart - $381,200 for a house, $325,000 for a unit
Source: CoreLogic Property Market Indicator Summary week ending March 19
CAPITAL CITY HOUSING PRICES IN 2016
Melbourne - up 10.8 pct
Sydney - up 10.3 pct
Hobart - up 8.8 pct
Canberra - up 5.5 pct
Adelaide - up 4.1 pct
Brisbane - up 3.8 pct
Perth - down 4.1 pct
Darwin - down 7 pct
Source: Australian Bureau of Statistics Residential Property Price Index December 2016.