These are the suburbs which performed better than any other during

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HOUSE values jumped 47 per cent in Australia’s best performing property market in 2016, while the strongest performing unit market wasn’t far behind.

Australias best performing property markets for 2016 have been identified in the latest CoreLogic Best of the Best report which analyses the winners in the property market, from increases in values, to rental rises and returns for investors.

And the winner is.....

Windsor in Victoria.

The median value of houses in Windsor increased by 47 per cent in the past 12 months while for the unit market it was Hunters Hill in NSW where median unit values jumped by a massive 45.8 per cent during the same period.

It wasnt just capital city suburbs that performed well during the year.

The gold medal suburb for property investors in the house market was Rosebery in Tasmania.

It achieved the highest gross rental yield of 9.3 per cent, while unit owners in Woree in Cairns achieved a gross rental yield of 8.7 per cent.

The unit market achieved the highest median weekly asking rent in Dawes Point in Sydney where it was $1775 a week.

In the house market it was $1725 a week in Tamarama in Sydney.

In terms of chalking up the highest value of sales for the year unsurprisingly it was in Sydney.

Mosman recorded $1,047,292,200 worth of house sales while for units it was Melbourne for a total of $739,769,597.

CoreLogic research director Tim Lawless said the results showed just how diverse and complex Australias property market was.

Not just across capital cities but also regionally and across product types,’ he said.

They are all moving at different speeds, I cant remember a time when we have seen so much diversity nationally across our markets.

Markets are always going to be running at different speeds, but to see Perth and Darwin tracking backwards for as long as they have now, since 2014, and Sydney and Melbourne values rising for nearly five years now at a fairly consistently high pace of capital gains and rental yields slowing to new historic lows and rental rates very flat generally - it is just the fact that the complexity of the market is such that there are so many indicators moving in different directions.’

Mr Lawless said the market had not performed how he had expected it would this year.

Absolutely not. I would have thought by the end of 2016 the market would have been slowing down due to affordability constraints for example in Sydney and Melbourne, due to very low rental yields, due to less investment. But the fact is the second half of 2016 has seen some re-acceleration in market conditions.

Of course we saw interest rates cuts in May and August which seems to have added some further incentives particularly for investors.’

Mr Lawless said investor numbers had been consistently rising since May with loans to investors increasing more than 15 per cent during that time.

His perspective of what the market would be like for 2017 was similar to how he thought 2016 would play out.

I think it is going to be a year of more moderate conditions and I think the renewed level of growth probably just reinforces that and the fact that we simply cant see dwelling values continuing to rise like what they have, on a backdrop of low wages growth and now it looks like rising interest rates as well.’