Australia's biggest cities are leading a surge in the Australian property market, with a 1.3 per cent increase in property prices during the month of October.
The rising prices were largely driven by the capital city, Sydney, with significant growth also recorded in Brisbane and Melbourne.
The latest Rismark Home Value Index has also shown the fastest pace of growth in three years, it reported that in the last year the value of houses in the country have risen 7.9 per cent and is up 8.2 per cent on 2012.
This drastic rise in house prices is likely to spark concern amongst property investors about a potential bubble forming in the market, particularly in Sydney, which has seen the largest growth this year, theaustralian.com.au reports.
Ben Skilbeck, Rismark chief executive officer, told propertywire.com that although Sydney has eclipsed its previous cyclical high and Melbourne is near its peak, Brisbane remains 8.4 per cent below its highs.
Mr Skilbeck said: "There is, however, evidence that growth conditions may be spreading to Brisbane with home values in that city rising by 1.4% over the month and 2.6% over the past three months.
"While Brisbane auction clearance rates are typically low in comparison to Sydney and Melbourne due to differences in the preferred sale mechanism, Brisbane auction clearance rates are approaching the 50% mark which was last consistently observed in 2009 when values increased 7.1% over the year."