Dwelling values across the combined capital cities of Australia rose by 1.6% in May with house values driving most of the capital gains, up 1.8% compared with a 0.1% rise in unit values.
The strong May numbers were largely the result of a surge in Sydney dwelling values which were up 3.1% over the month.
A rise of more than 1% month-on-month was also recorded in Melbourne (1.6%), Canberra (2.5%) and Hobart (2.2%).
Perth was the only city to record a fall in dwelling values over the month, down 2.7%.
The CoreLogic combined capitals index has recorded a 5.0% increase since the beginning of January and as a result, has caused the annual trend in capital gains to rebound after conditions tapered since July last year.
The annual rate of growth, which recorded a recent trough in December last year at 7.4%, has since rebounded back to 10.0% at the end of May.
The current growth cycle has been running for four years now.
After capital city dwelling values fell by 7.4% between October 2010 and May 2012, values have since risen by 36.6% over the growth cycle to date.
The largest capital gains over the cycle to date have been in Sydney where dwelling values are 57.5% higher followed by Melbourne with a 39.4% capital gain since values started rising.
The third strongest performance has been in Brisbane at 18.5%.
The rebound in the rate of capital gain during 2016 is supported by other measurements in the market.
Auction clearance rates across the combined capital cities have remained stable and hovered around the high 60% to low 70% range since February this year.
The March data shows investors now comprise of 47.6% of all new mortgage commitments which is the highest proportional reading since August last year.