House prices across Australia climbed further in May as a combination of ultra-low interest rates, strong consumer confidence and low supply drove prices to their highest levels in every capital city.

Sydney’s property market is one of the hottest in the world as house prices are currently rising by A$1,220 (£667) a day, and Melbourne house prices are climbing at almost A$800 (£437) a day with no sign the markets are about to cool any time soon as the economy gathers speed and the Australian Reserve Bank remains committed to record-low interest rates for years to come.

Among major global cities, only Vancouver on Canada’s Pacific coast has seen house prices climb faster than Sydney, which so far this year has endured a 15.1% jump in values according to data just released by CoreLogic. Sydney’s median house value in May climbed another 3.5% to a record $1.186m (£648,000). Since the start of the year, it has grown by $34,200 (£18,700) a month.

In Melbourne’s the median house value climbed by 2.2% through the month of May to reach $908,000 (£496,000), growing by $21,500 (£11,750) a month since the start of the year.