Solid property growth across the Australian Capital Territory and other smaller cities in March has helped offset a slip in housing values in Sydney and Melbourne, new data shows.

CoreLogic’s latest Hedonic Home Value Index found that strong gains in property values in the ACT, Brisbane, Adelaide and Perth had been fundamental drivers in national growth of 0.7% in March, as prices in the bigger cities continued to soften.

The data, released on April 1, shows Canberra dwelling values rose by 1% in March, resulting in 21.6% growth in the past year. The median dwelling value in Canberra is now $932,704.

Houses again saw less growth compared to units and apartments, which rose by 0.8% and 1.5% respectively. The median house price has continued to creep further past the $1 million mark, sitting at 1,055,812 in March, compared to the median unit price at $609,314.

Canberra’s rental market experienced significant increases in rents, with a 9.7% boost to house rents and a 6.7% rise for units in March. Rental yields were at 3.8%.

McGrath Canberra Managing Director Craig Chapman said the ACT market was showing unrelenting stamina, but the growth was not sustainable.

“The good times seem to keep rolling for homeowners in Canberra with both houses and units sustaining increases in values. It is modest growth when we look at the big picture, but we are seeing a constant upward trajectory,” Mr Chapman said.

“Investors have plenty to celebrate too with median rents rising almost 10% year-on-year and the nation’s capital boasting the highest yields on the east coast.”

Mr Chapman said the market sentiment was positive leading towards the Federal election and excellent results were still flooding in for well-presented and well-located homes across all categories.

“This is a two speed tale,” Mr Chapman said. “While many are rejoicing the seemingly no-end-in-sight run of property price hikes, there are some first homebuyers and renters who are not enjoying such fortunate times.

“A healthy market is a sustainable one. This cycle won’t last forever, so if you’re in the market to buy, sell or rent, it’s crucial you act quickly on quality information from a quality agent.”

CoreLogic Director of Research Tim Lawless said while the monthly rate of growth was up in some cities and regions, there was mounting evidence that housing growth rates were losing momentum.

With the softening in market conditions, the national annual growth rate of 18.2% has fallen below 20% for the first time since August last year.

“Virtually every capital city and major rest-of-state region has moved through a peak in the trend rate of growth some time last year or earlier this year,” Mr Lawless said.

“The sharpest slowdown has been in Sydney, where housing prices are the most unaffordable, advertised supply is trending higher and sales activity is down over the year.”