Australian house prices went up in the June quarter, recording the largest increases since September 2010.

The Real Estate Institute of Australia (REIA) has released the June quarter Real Estate Market Facts report which shows improved performance in the Australian residential property market compared to the previous quarter.

REIA Acting President, Ms Pamela Bennett said, “House and other dwelling median prices increased by 1.2% to $541,188 and 0.5% $430,230 respectively. These are the largest increases recorded since the September quarter of 2010.”

Canberra, Sydney and Melbourne recorded the highest median house prices while the lowest were evident in Brisbane, Adelaide and Hobart.

“Melbourne showed the greatest improvement over the quarter with the median price increasing 5.4% to $590,000. The largest decline was evident in Darwin with the median price down 6.4% to $515,000,” Ms Bennett continued.

Rents for three bedroom houses remained unchanged in most capital cities, with the exception of Hobart and Darwin where median rents for three bedroom houses declined 8.3% and increased 2.7% respectively.

Rents for two bedroom other dwellings showed varied results across Australia; declining in Adelaide, Perth, Hobart and Darwin, increasing in Sydney and Canberra and remaining unchanged in Melbourne and Brisbane.

Darwin remains the most expensive capital city in which to rent a three bedroom house at $540 per week. Sydney is the most expensive city in which to rent a two bedroom other dwelling with a median rent of $450 per week.

The property market’s improved performance over the June quarter was accompanied by an increase in the value of owner occupier and investment loans; both recorded a significant recovery compared to the previous quarter, increasing 12.8% and 19.3% respectively.

“There are signs of some slowing in the pace of global economic growth which may pose some challenges to policy makers to maintain stable economic performance. Maintaining cash rates at the current level will provide respite to mortgage holders and stable economic growth,” concluded Ms Bennett.