Australian house prices continue to increase in most capital cities, but growth pace is slowing, according to a June quarterly house price report released today by online real estate data group Australian Property Monitors (APM).

House prices around the country had a moderate rise of 2.4 per cent in the three months to June, although the annual rate remained strong at 15 per cent.

Home unit prices also climbed 2.4 per cent in the quarter, with an annual rate of 12.2 per cent.

Sydney enjoyed its fifth successive quarterly upward sweep, with a 2.3 per cent growth for an annual increase of 11.9 per cent for house prices. Unit prices in the city hiked 2.8 per cent.

Melbourne and Canberra likewise had strong growth for the second quarter, with lifts of 4.4 per cent and 1.9 per cent and annual rates of 27.9 per cent and 16.5 per cent, respectively.

Among capital cities, Hobart and Darwin were the only ones to report a drop in prices.

APM economist Matthew Bell said the performance was remarkable considering the six interest rate hikes between October last year and May 2010.

"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."