New data from CoreLogic RP Data explains why so many Australians aspire to be property owners.

The CoreLogic RP Data Accumulation Index measures total returns from residential property, including increases in value and gross rental returns. 

The latest results show that total returns from property in Australia were 13.9% for the year to May 2016. In a low interest rate, low inflation environment, returns of this magnitude are scarce.

Total returns on Sydney's residential property market for the year were 16.9%, and for Melbourne were 17.5%. In Sydney and Melbourne, gross rental returns are at record lows, so the majority of the gains are coming from capital appreciation.

Perth was the only capital city to record negative returns for the year.

Cameron Kusher, of CoreLogic, said capital growth is unlikely to remain at such high levels, and investors should look for solid rental returns when considering investment property.

"Despite the recent rebound in value growth, the mature capital growth cycle and record low rental returns in Sydney and Melbourne, total returns are unlikely to be as strong in these cities over the coming years.  A more balanced investment approach which focuses on moderate capital growth and relatively strong rental returns is likely to be a superior housing investment profile over the coming years," he wrote.

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