Canberra's property market continued to deliver mixed results in the September quarter, with median prices dropping by 1.4 per cent.
Data from the Australian Property Monitors house price report shows the capital's property market remains up by just 0.2 per cent for the year, as unit prices also down by 0.8 per cent.
The same survey found Sydney and Melbourne were sustaining the national average, with Sydney growing by 4.2 per cent and Melbourne by 2.2 per cent.
“Although the national median house price had a solid increase over the quarter, this outcome primarily reflected strong contributions from the Sydney market and to a lesser extent, the Melbourne market,” economist Andrew Wilson said.
“Despite the influence of the lowest interest rates in 60 years generating buyer and seller interest, local supply and demand factors continue to drive housing price growth.”
Dr Wilson said the Canberra market showed a "volatile pattern of activity" during the past 18 months and concerns over public sector employment were reflected in the latest results.
Price growth continued in the Sydney marketplace broke through $700,000, as the median house price reached $722,718 and $515,035 for units.
"Despite the influence of the lowest interest rates in 60 years, local supply and demand factors continue to drive capital city housing market outcomes," Dr Wilson said.
"Housing market recoveries remain patchy, mixed and fragile. Medium-term prices growth will continue to be constrained by modest levels of incomes growth and the impact on a still wary consumer of a predicted deterioration in economic activity and rising unemployment."
Hobart remains the lowest median priced capital city, with media house prices last quarter reaching $322,788 and just $253,179 for units.