Capital's housing prices highest in the country

The median price tag for a house in the capital rose to $529,975 over the past month, according to home value figures issued by RP Data and Rismark International yesterday.

It's a jump of almost $25,000 from the median dwelling price recorded in February and the latest in a series of steady increases since May last year.

The latest figure also puts median Canberra prices above those in Sydney, a position the capital has held since local growth surpassed the Sydney market in December.

Median prices in the two cities are considerably higher than other capitals, however Rismark International managing director Ben Skilbeck said each city worked on its own price cycle with Melbourne experiencing a 45.5 per cent increase in home values since start of 2007. ''Sydney and Canberra haven't experienced anywhere near that growth,'' he said. ''You'll see one market boom and then it will go flat.''

Nationally home values rose by 0.2 per cent in March, ending a flat quarter which is considered the strongest result in the past year.

Despite the soft market, Mr Skilbeck said there were a number of factors indicating growth in the coming months, including increased loan approvals and a boost in the number of first home buyers.

''They're always a good test for affordability and they're back to levels not seen for two years,'' he said.

However Australians for Affordable Housing spokeswoman Sarah Toohey said prices in the capital remained an issue for many buyers.

''Canberra is one of the toughest markets,'' she said. ''If you don't work in the public service, even affording rent is almost impossible.''

Canberra experienced some of the largest increases in rental yields throughout the March quarter, up 4.8 per cent for houses and 5.7 per cent for units.

Ms Toohey said the ACT and federal governments should be working towards helping people in housing stress through measures such as increasing rent assistance.