Data from CoreLogic shows combined capital city home prices rose 1.1% in August and 1.0% in September. The increases follow rate cuts by the RBA which lowered rates in May and August to an all-time low of 1.5%.

The RBA has played down risks of a bubble in the housing market and specifically noted that changes to the methodology of CoreLogic’s data had overstated recent price gains.

Annually, growth in prices reached 7% in August and 7.1% in September (the average growth across the eight capital cities).

The data showed the strongest annual increases were in Sydney (10%), Canberra, Melbourne and Hobart (all 9%), while prices fell in Darwin (6%) and Perth (7%).