Hobart continued as Australian real estate’s star turn in the June quarter, with capital growth of 2.3%, according to CoreLogic’s latest Home Value Index.

Next best was Adelaide with growth of almost 1.0%, with Brisbane and Canberra also recording positive returns for the last three months of the 2017/18 financial year.

CoreLogic research director Tim Lawless commented, “A surge in first home buyer activity has helped support demand across the more affordable price points in [Sydney and Melbourne].

Despite recent and consistent monthly falls, national dwelling values remain 32.4% higher than five years ago, noted Tim. He said, “This highlights the wealth creation that many homeowners have experienced over the recent growth phase.”

Outside the capital cities, combined regional markets recorded a 0.6% rise in dwelling values over the quarter. Regional markets in Victoria produced the best rate of capital gain over the June quarter (+1.8%), closely followed by regional Tasmania (+1.7%).