Home values across Australia’s capital cities climbed almost 10 per cent during the 2014/15 financial year, fuelled by the booming Sydney and Melbourne markets.

A rebound in values during June helped lift the annual result to 9.8 per cent, just below the 10.1 per cent rise in 2013/14, data released by CoreLogic RP Data shows.

CoreLogic RP Data’s head of research Tim Lawless said the Reserve Bank’s interest rate cuts in February and May helped fuel demand for property, particularly in Sydney and Melbourne.

In Adelaide, property prices rose by 4.5 per cent, with the median dwelling price hitting $405,000.

Lawless said the strength in the housing market had been “diverse” over the year.

“While Sydney and Melbourne have seen dwelling values increase by 16.2 per cent and 10.2 per cent over the financial year respectively, every other capital city has seen growth of less than 5 per cent and dwelling values are down over the year in Darwin (-2.9 per cent) and Perth (-0.9 per cent),” he said.

Adelaide had the fifth highest rate of capital city growth since dwelling values started rising in May 2012.

Since that time, Sydney property prices had risen by 43.1 per cent, followed by Melbourne (25.9 per cent), Perth (12.8 per cent), Brisbane (12.4 per cent) and Adelaide (10.4 per cent).

Hobart, Darwin and Canberra all increased by under 10 per cent over the growth phase.

Lawless said these “three tiers” of housing market performance could be explained by economic and demographic factors.

It wasn’t a coincidence that NSW and Victoria were experiencing greater housing demand, given they cities had the strongest economic conditions and rates of migration. These states were also more sheltered from the mining sector downturn than others.

– with AAP