Melbourne house prices increase by five percent

Melbourne's home prices have experienced the highest rate of growth among the nation’s capital cities during the September quarter with values rising five percent.

Canberra came second with home prices up 4.5 percent for the quarter, followed by Sydney with 3.5 percent, 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 percent and 0.3 percent respectively.

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

With AAP