The value of Australian homes surged by 2.1 percent in February, according to industry analyst CoreLogic, the steepest increase since August 2003.
A combination of record low mortgage rates, improving economic conditions and government incentives were credited with boosting house prices.
"The last time we saw a sustained period where every capital city and rest of state region was rising in value was mid-2009 through to early 2010, as post-GFC stimulus fueled buyer demand," CoreLogic Research Director Tim Lawless said.
Australia's two largest cities, Sydney and Melbourne saw the sharpest increase, recording a 2.5 percent and 2.1 percent lift respectively as they recovered from weaker performance during 2020.
However on a quarterly basis, the largest growth was seen in the smaller cities, with the value of housing in Darwin up 5.5 percent over the past three months, Hobart up 4.8 percent and Perth up 4.2 percent.
As of the start of 2021, the cost of housing in Sydney and Melbourne remained below previous peak levels, however was forecast in due time to exceed to exceed them, raising further issues for those looking to enter the market.
"At this current rate of appreciation it won't be long before Australia's two most expensive capital city markets are moving through new record highs," Lawless said.
"With household incomes expected to remain subdued and stimulus winding down, it is likely affordability will once again become a challenge in these cities."
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