Australian house price growth continues to rise in most capital cities but the pace of growth is slowing, according to online real estate data group Australian Property Monitors.

House prices grew 2.4 per cent around the country in the June quarter, but the annual rate was still strong at 15 per cent. Home unit prices also had a 2.4 per cent rise in the quarter, with an annual rate of 12.2 per cent, APM said in its June quarterly house price report.

Sydney enjoyed its fifth consecutive quarterly increase, with a 2.3 per cent rise for an annual increase of 11.9 per cent for house prices, with unit prices up 2.8 per cent.

Melbourne and Canberra also had strong growth for the June quarter, with rises of 4.4 per cent and 1.9 per cent, respectively, for annual rates of 27.9 per cent and 16.5 per cent. Hobart and Darwin were the only two capital cities to post price falls.

APM economist Matthew Bell said the performance was surprising considering the six interest rate rises between October 2009 and May this year.

“Over the quarter we have seen increased investor activity mitigate the fall in demand from owner-occupiers, particularly the drop-off in first-home-buyers,” he said.

“APM expects further price growth moderation in the next three to six months as the low levels of housing finance and the risk of further rate increases weigh on the market.

“However, the medium-to-long-term outlook for property prices remains strong, and we expect the 2010 annual rate of national house price growth to settle in the eight to 10 per cent range.”