Canberra property values have grown by 0.6 per cent in the past month to a new record high.
New data from CoreLogic for October showed the median value for Canberra property rose to $601,487, a 2 per cent increase compared with the same time last year.
The figures show the national capital has the third highest median property value in the country, only behind Sydney and Melbourne.
Canberra house values jumped by 0.8 per cent last month to a median of $671,968.
There was a modest increase for unit values on the other hand, rising by just 0.1 per cent to $429,728 for October.
Canberra recorded its largest quarterly growth, 2.4 per cent, since March.
On a national level, property values increased by 1.2 per cent, the biggest rise in more than four years.
Every capital city recorded growth in property value last month, with the exception of Perth, which dropped 0.4 per cent.
The new figures comes as property values across the country dropped by 8.4 per cent in the nearly two years between October 2017 and June this year.
The CoreLogic figures show national property values are at a similar level to what they were three years ago.
CoreLogic's research director, Tim Lawless, said the housing market was gathering steam after a long period of falls in house prices.
"It's becoming increasingly clear that the housing market rebound is gathering pace, both geographically and across the board valuation cohorts," Mr Lawless said.
"[This is] off the back of lower mortgage rates and improved access to credit, as well as an improvement in affordability relative to the market peak several years ago and consistently high demand via population growth."
The Reserve Bank in October slashed the official interest rate to a record low of 0.75 per cent.
A decision on whether the rate will be cut even further will be made on Tuesday.
AMP Capital chief economist Shane Oliver said several factors had unleashed pent up demand in the national housing market.
"The boost from the election result, RBA rate cuts and the relaxation of the 7% mortgage rate serviceability test are continuing to drive a surge in home buyer demand," he said.
"The big issue is whether the rebound in the Sydney and Melbourne property markets will present a problem for the RBA in terms of further easing whether by rate cuts, quantitative easing or both.
"This will no doubt cause some consternation at the Bank. But as we saw over the 2011-17 period the RBA will do what it believes is right for the 'average' of Australia as opposed to a couple of cities.
"However, it may have to return to tighter regulatory controls again if housing credit growth starts to get out of hand again. In other words, we don't see the rebound in the Sydney and Melbourne property markets as a barrier to further monetary easing, but if it continues to gather pace leading to a rebound in credit growth to levels that cause the RBA to worry about financial stability then expect a new tightening of the screws from bank regulators."
Mr Lawless said, "Demand for housing is responding to stimulus measures, including mortgage rates that are now lower than anything we have seen since the 1950s.
"There has been a shortage of new listings for several years, which has likely resulted in some pent up demand from homeowners looking to sell."