Property prices continued to rise steadily again in 2002, with the value of the average house in Wales breaking the �80,000 mark, but less dramatic increases are forecast for this year.

The overall growth in prices across Wales was the fastest for a decade, according to the Principality Building Society.

Cardiff was the major hotspot, with the average property price increase touching 20%, rising from �93,000 to nearly �110,000.

Property increases in 2002:

An all-Wales average increase: �71,804 to �83,246 (+16.8%) South East Wales average: �78,628 to �92,464 (+18.5%) Mid Wales average: �74,386 to �85,923 (+16.6%) North Wales average: �68,165 to �76,382 (+13.1%) West Wales average �62,663 to �69,591 (+11.4%)

But the situation elsewhere in the country showed strong regional variations, with a modest 10% increase in Bangor, up to �69,351.

In Newport, average prices went up to �80,193 (+13.6%), �75,215 (+11.1%) in Wrexham, �74,861 (+12.4%) in Swansea.

The key factors in price increases in Wales during 2002 were low interest rates for mortgages and high employment.

Peter Griffiths, chief executive of the Principality Building Society, warned homeowners against anticipating further sharp price increases during 2003, which is expected to show less dramatic rises.

"We remain very positive for the housing market in 2003," he said.

Top prices in Wales are still cheaper than London

"However, I would caution home owners against the expectation that double-digit house price growth will continue into 2003.

"It is pretty obvious that 16.8 % average growth is not a figure that can be sustained for any length of time."

Mr Griffiths said one of the strongest trends noted in 2002 was the movement of first-time buyers away from property hotspots.

"Pressure on affordable homes for first time buyers in Cardiff, Swansea and Newport is having a knock-on effect on nearby travel-to-work towns and communities such as Pontypridd, Llanelli and Cwmbran," he explained.