The latest CoreLogic RP Index shows that property prices in Australian capital cities increased by 0.3% in February, taking the annual rise in values to 8.3%. Sydney recorded the largest year-on-year increase at 13.7%, followed by Melbourne at 7.4% and Brisbane at 5.9%.

However, values have increased by under 4% in every other state capital city over the year. Combined, dwelling values have moved 22.6% higher across the capital cities since the start of the growth cycle in 2012.

CoreLogic’s head of research, Tim Lawless, pointed out these latest month-on-month results show the combined rate of dwelling value growth slowing compared with the December and January figures, down from 1.3% in January and 0.9% in December, but that the growth trend remains strong, particularly in Sydney and Melbourne.

He sounded a note of caution: “Weaker jobs growth, higher unemployment, declining affordability, low rental yields and political uncertainty are all factors that could dent consumer confidence and provide some counterbalance to the rate cuts and quell any additional market exuberance.”