Australia's housing market ended the year well despite recent interest rate hikes, talk of a recession and the phasing out of the first-home buyer grant.

Over the first 11 months, home values rose by 11.3% after their modest 3.8% peak-to-trough falls in 2008.

The data, compiled by property RP Data and Riskmark International, found the best-performing capital city was Darwin with values up 17.9% during the 11 months.

Adelaide was the worst, recording just a 5.7% increase.

The Australian