It’s price on application for this home in Centennial Park which has the highest median house value of any suburb in Australia. Picture: realestate.com.au Source: Supplied

Capital city values were up by 8.5 per cent and growth continued throughout much of the year, although the pace slowed a little in recent months.

Some markets performed better than others according to the annual CoreLogic RP Data, Best of the Best report.

In the housing market Mays Hill, about 24km west of the Sydney CBD recorded the best growth in the house market in Australia.

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There are very few homes listed for sale in Mays Hill, New South Wales and this one is seeking offers of more than $1.3 million. For that you get five bedrooms and two bathrooms. Picture: realestate.com.au Source: Supplied

In the 12 months to September its median value shot up by 48.8 per cent to $823,724.

Of the nine houses listed for sale in the suburb on realestate.com.au eight are already under contract.

Many of the properties have been listed as potential development sites.

The best growth in the unit market was also in New South Wales at Winston Hills about 35km west of the Sydney CBD. Its median value increased by 41.5 per cent during the period to $450,840.

CoreLogic RP Data research director Tim Lawless said investors and upgraders had driven the market during 2014.

Source: CoreLogic RP Data. Source: News Corp Australia

He said investor activity was continuing to grow and is now at its highest ever proportion of lending.

“Investment lending has risen across most states however, New South Wales and Victoria have seen the most significant escalation,’’ he said.

Mr Lawless tipped continued growth in the market next year although not at the same level as this year.

“After 2.5 years of growth, the market seems to be running out of steam,’’ he said.

“We still expect values to grow in 2015 albeit at a slower pace than what we have seen through 2013 and 2014.’’

Cheap rent in sunny Cairns — only $165 per week for a unit in this complex. Picture: realestate.com.au Source: Supplied

Mr Lawless said the big increases in values in Sydney and Melbourne in the past year could lead more buyers to look at regional markets in New South Wales and Victoria or Brisbane and even Adelaide next year.

It was mostly suburbs outside capital cities which offered the best returns for investors in the

past 12 months.

Coleraine in the southern Grampians, about 330km west of Melbourne had the highest gross rental yield for houses in Australia of 13.1 per cent.

The median rent was only $170, but with a very low median house price or $67,500 the return to investors was high.

Property investors did well in Robe, with a solid 13 per cent gross rental yield among the highest in Australia. Picture: Stephen Laffer. Source: News Corp Australia

Online listing website realestate.com.au has no properties listed for rent in the suburb.

Robe about 330km south of Adelaide was also a strong performer, with a yield of 13 per cent based on a median rent of $785 a week and a median house value of $313,500.

In the unit market, Woree in Cairns was the best performer with a gross rental yield of 11.6 per cent based on $250 a week rent and a median value of $112,500.

There are 34 units listed for rent in the suburb, with the cheapest $165 a week for a one-bedroom apartment and the most expensive rent $340 a week for a fully-furnished two bedroom apartment.

The report revealed Centennial Park in New South Wales had the highest median house value in Australia of $5,494,116, which means half of the properties in that suburb were valued at more than that price.

While Dawes Point in Sydney had the highest median until value of $2,523,974.

Source: CoreLogic RP Data Source: News Corp Australia