Canberra house prices continue to show steady growth despite a concerns over unit oversupply in the market.
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The latest CoreLogic Home Value results showed national price growth is slowing on the back of a drop in Sydney house prices.
The national market only grew at .05 per cent over the quarter to September, the slowest rate of growth since June 2016.
CoreLogic head of research Cameron Kusher said the national slowdown in growth was largely on the back of conditions in the Sydney market where capital gains have stalled and a softening market in Melbourne.
The data showed Canberra was the third best performing capital city for property growth - after Hobart and Melbourne - in both the last month and quarter.
House prices in Canberra jumped 0.6 per cent in September, while across the last quarter prices rose by 1.3 per cent.
Canberra's September growth rate was identical to the same time last year, and up on the 0.8 per cent rise last quarter.
The last 12 months saw property prices jump by 7.8 per cent in Canberra, with steady growth expected to continue.
"You're starting to see population growth in Canberra pick up, a very low unemployment rate and also the fact it's a lot more affordable than Sydney is why we're seeing investment there," Mr Kusher said.
"For the year ahead we think the market is going to be fairly steady to what it is at the moment with reasonable growth in the market."
The average house price in Canberra was $653,139 while the average price for a unit was $429,556.
But there was less good news for Canberra's unit prices, which dropped 0.1 per cent in September, showing modest growth of 0.6 per cent over the last quarter.
Mr Kusher said Canberra's unit sector was facing similar oversupply concerns to Brisbane.
Hobart further cemented itself as the best performing property market after a recent history of sluggish conditions.
It has seen annual growth of 14.3 per cent- the highest since 2004 - and a quarterly rise of 3.4 per cent.
The report found while Melbourne's housing market is showing slower growth conditions, its growth remains resilient compared to Sydney.
Mr Kusher said property prices were expected to trend lower in Sydney and potentially Melbourne later this year but demand for housing and low interest rates would help support a floor under housing prices.
