Across the country, capital city property values jumped 9.8 per cent throughout 2014-15 and by an average of 2 per cent during the June quarter, figures issued by CoreLogic RP Data on Wednesday showed.

Canberra's dwelling values were up 0.5 of a per cent in the second quarter of 2015 and 0.6 per cent in June.

Sydney recorded the sharpest increase of 3.3 per cent in the past three months, followed by Melbourne with 1.9 per cent.

The only capital cities to experience a drop in residential property values were Perth and Darwin, which had the steepest fall of 3.1 per cent.

CoreLogic RP Data's head of research, Tim Lawless, said the Perth and Darwin markets had weakened in line with the resources sector downturn, drop in infrastructure investment and slowed migration.

"Brisbane, Adelaide, Canberra and Hobart are seeing softer economic conditions and population growth compared with Sydney and Melbourne. However, housing markets have shown some level of growth over the year," Mr Lawless said.

The average Australian capital city house price, based on settled sales over the quarter, was $595,000 and the average unit price was $500,000.

The data showed the average sale price for Canberra homes in the past quarter was $535,000. Houses were sold at an average $590,000 and average unit sale was $420,000.

Sydney was the most expensive city with a median residential property price of $722,000 in the quarter, while Hobart was the most affordable city to buy with the median price of $315,500.

Rental yields in the ACT rose to 4.1 per cent for houses and 5.1 per cent for units in the year to June.

The highest rental yields were experienced in Darwin, with 5.8 per cent for houses, and in Brisbane with 5.4 per cent for units.

Melbourne had the lowest rental yields of any capital city with 3.2 per cent for houses and Melbourne units at 4.3 per cent.

The figures prompted a leading investment bank to warn Australian property prices were in a bubble and heading towards a correction in the next two or three years.

UBS research indicated soaring property prices in major cities across Australia had begun to exhibit some bubble-like characteristics, but there was no sign yet of a cause for it to burst until 2016-2017.

CommSec chief economist Craig James said there wasn't a housing bubble, rather an imbalance between supply and demand in key markets such as Sydney and Melbourne.

"This is much like what happened in the iron ore market: when demand exceeds supply, prices can soar at an unsustainable rate. But the homes are being built to meet demand, it just takes time."

Mr James said investors should tread warily.