THE price of the average home in Newport almost doubled in the past four years, new figures released today show.

And the city is the Welsh property hotspot of 2004 according to statistics from The Principality Building Society.

The statistics from major towns and cities across Wales show the average Newport home's value increasing by 27.9 per cent in the past 12 months to a price of £129,397, the largest increase in Wales.

The Newport increase is compared to a 12.9 per cent rise in Cardiff and a 25.8 per cent rise in Swansea, taking the average house price in Cardiff to £161,612, and the average house price in Swansea to £128,771.

The overall all-Wales average has gone from £105,538 to £130,312, a 23.5 per cent increase.

The average Newport house price of £129,397 is a big difference from the average price of houses in Newport in 2000, which was £67,287.

That is an increase of £62,110 in four years.

Peter Griffiths, Principality chief executive, said the house price growth in Wales over the past two years had been strong and reflected the strength of the economy and the job market in Wales.

But he said: "The Principality is predicting a flat year for house prices in Wales in 2005. The business is planning for a year of stability in the market, with the likelihood of minimal growth."

Chris Jones, manager of the Home Office estate agents, Newport, said: "I think Newport is doing so well because of its city status, and when it has established itself it will attract businesses into the area.

"I am hopeful that prices will continue to rise, and things are looking good."

Ian Morgan, proprietor of Morgan Leonard & Co, said: "The rise in house prices in Newport has been startling.

"Traditionally it was a lower-priced area than somewhere like Cardiff, which meant that it attracted people who wanted to make a career out of property investment.

"Now others have moved here because of Newport's location to Cardiff and Bristol."