Perth continues to see the strongest house price growth in Australia . While this city is seeing similar trends to other capital cities , it appears that rising wealth from strong mining conditions is also playing a role . Adelaide is also a top performer , seeing similar drivers to Perth . Melbourne continues to see the weakest growth , however , is still up 6.6 per cent compared to last year .
While Perth tops the country for house price growth , Adelaide units are the strongest , with prices up almost 10 per cent since last year . While growth is problematic for affordability , it will ensure more homes are built . The cost of construction increased dramatically last year . Although it has stabilised now , building a home is still a lot more expensive than it was two years ago . Prices of existing homes needed to rise to match the higher costs of building a new home .