Properties located close to the capital cities and are priced under $500,000 have grown the fastest according to a new report.

RP Data revealed that 62.5% of the top performing suburbs in the list are situated in capital city areas with only 4 mining towns making the cut.

Properties under $500,000 dominated the fastest growing list with a total of 53 suburbs included while the middle to upper range ($500,000 to $1 million) accounted for 20 suburbs listed.

Cameron Kusher, senior research analyst with RP Data said that it's not a surprise to see that growth areas are dominated by suburbs near the capital cities.

"It is surprising to see some of the $1m plus suburbs making the high growth list. However it's important to remember that the data was calculated on an annual basis and in the earlier part of 2008, these areas were still performing very strongly," he said.

In Sydney, McMahons Point saw median house price grow by 47.4% to $1.675 million while units in Greenwich jump by 49.8% to $490,000.
"Greenwich is a tightly-held area and unit prices are still affordable so the spike in growth is likely due to the high demand from first homebuyers because it's within their price range," said Pino Tedesco, director with Metropole Property Investment Strategists.

All the top ranking suburbs for houses in Victoria were found within Melbourne. Houses in Portsea, St Andrews and Eaglemont saw values jumping between 30% and 38% while unit values in Dallas surged by 48.3%.
In contrast, Queensland's top performers were dominated by suburbs outside Brisbane. House values in River Heads grew 43.1% while unit prices in North Lakes climbed by $47.3%.

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