Property values in Australia rose in November, with the Cotality Home Value Index up 1%, but its pace of growth eased from last month's gain of 1.1%, the real estate data provider reported Monday.

Home values in the country's mid-sized capitals outperformed, with Perth up 2.4% and most others rising 1%. However, the country's two largest cities, Sydney and Melbourne, lagged at 0.5% and 0.3%, respectively.

Sydney and Melbourne's moderated gains could be due to record levels of housing unaffordability, rebound in inflation, and lower auction clearance rates, noted Tim Lawless, Cotality's research director.

"With inflation once again above the RBA's target range and rates potentially on hold for the foreseeable future, it's likely housing sentiment will suffer," Lawless added.

Lawless said the impact of the recent policy of limiting high debt-to-income ratio loans to 20% of new lending will be limited and would only affect the margins of borrowing activity.