Recent research by RP Data confirms that home values across Australia's combined capital cities rose by 0.2% in March. House values are up 0.1% and units rose by 0.9%.

Rental rates are increasing too. Gross rental yields have improved from 4.1% in February 2010 to 4.6% at present for houses; and from 4.8% to 5.2% for units. Over the year to February 2012, capital city house rental rates increased by 4.7% and unit rents are up by 3.2%, both of which outperformed home value growth.

Sydney

Sydney home values increased by 0.4% in March 2012 (house values up 0.2%; units increasing by 1.0%) bringing the total increase for the March quarter to 1.1%.

Melbourne

Melbourne's housing market has been quite resilient over recent months, and although house values fell by 0.3% in March 2012, unit values rose by 0.3%.

Brisbane

Brisbane's housing market experienced an increase of 0.8% in March 2012, with home values up 0.8% and unit values rising by 0.7%.

Adelaide

Adelaide values recorded the largest decline out of all the capital cities in March 2012. House values fell by 1.8%; however unit values bucked the trend, rising by 3.1%.

Perth

Perth is one of the two capital cities that recorded the greatest increase in home values in March 2012. House values rose by 1.4% and unit values were slightly higher, climbing 1.8%.

Hobart

Hobart experienced relatively strong value growth in March, with home values up 1.4%. Indeed over the last quarter, Hobart home values rose 7.3%.

Darwin

Home values in Darwin increased by 1.1% in March 2012, with house values up by 1.6%, compared with a 1.3% fall in unit values. Over the last three months, home values have increased by 3.9%.

Canberra

Home values across Canberra decreased by 0.3% in March 2012, with house values down 0.6% though unit values increased by 2.9%. Over the past year, values in Canberra have fallen by just 0.2% making the nation's capital the best performing market among all state or territory capitals.