Melbourne home prices lead the way

Melbourne has recorded the strongest rise in house prices among the capital cities during the September quarter.

House-hunters examine an auction sign outside a property in Beacon Hill, Sydney. Source: Bloomberg via Getty Images

Melbourne's home prices has had the highest rate of growth among the capital cities during the September quarter with values rising five per cent.

Canberra came second with home prices up 4.5 per cent for the quarter, followed by Sydney with 3.5 per cent, figures from market analysis firm CoreLogic show.

The weakest housing market for the quarter was Darwin where home values fell 4.5 per cent while Perth and Brisbane also slipped, by 3.2 per cent and 0.3 per cent, respectively.

The combined capital city index, which is heavily weighted towards Sydney and Melbourne, rose 2.9 per cent for the quarter.