Homes are more expensive in the inner city but some outer suburbs are experiencing stronger value growth.
Inner-city housing isn't bulletproof, property information provider CoreLogic RP Data says.
"Although housing in inner city areas is more expensive, it doesn't necessarily mean that value growth will consistently outperform growth across the rest of the city," senior research analyst Cameron Kusher said.
"Furthermore, as Perth and Darwin highlight, inner city housing isn't bulletproof and in the event of a house market downturn it has in the past and will potentially in the future also see value declines."
The firm's data shows the proportion of homes worth more than the city-wide median is substantially higher in inner city areas compared to suburbs more than 10km away.
But when it comes to the growth in values, Mr Kusher found that outer suburbs are outperforming inner suburbs in Perth, Hobart and Darwin.
Sydney has recorded the sharpest rises in home values over the past year although it is the suburbs outside the 10km inner ring that have generally experienced stronger value growth, Mr Kusher said.
He noted that Sydney values have been rising for more than three years and growth, while continuing, has shifted from inner city areas to more affordable outer housing markets.
Melbourne, Brisbane, Adelaide and Canberra were the only capital cities in which more than half of the inner-city suburbs recorded value growth in excess of that across the cities.
While its abundant amenity means inner-city housing will likely remain more desirable than suburbs further afield, Mr Kusher said the reality is that the cost of housing in those locations is restrictive and supply is relatively short.
He said in markets like Sydney buyers are having to look outside the 10km inner ring anyway because they can't afford the city prices.
"Particularly for the people on their first and second house the inner city can be an aspirational purchase but you need a big deposit and you need to be able to pay off a big mortgage to be able to be close to the city," he said.
"Obviously in a market like Hobart it's not as substantial a cost as it is elsewhere, but still relatively speaking you pay a lot more as you get closer to the city."
