The value of residential properties across Australia's capital cities accelerated in the December quarter, pushing up home prices by an average 7.7 per cent in 2016.

Prices rose 4.1 per cent in the December quarter, with the growth again led by Sydney and Melbourne, according to the Australian Bureau of Statistics’ Residential Property Price Index. Sydney house prices rose 6.1 per cent during the December quarter, while those in Melbourne rose six per cent. Housing auction…