The national property market has recorded its largest monthly increase in two years as Australians capitalise on rising confidence, an easing in lending standards, lower interest rates and tax cuts. The average situation across the nation was a 0.8% rise in house prices in August, according to one research source, while another has reported a 1.9% monthly rise.

Sydney was the best performing city in the three months to August, with its median rising 1.9%, according to CoreLogic. Melbourne is recovering also, with a quarterly rise of 1.8%. Both major cities are still more than 6% lower year-on-year, according to CoreLogic – although figures from SQM Research have them down only 3-4% year-on-year.

Canberra, Hobart and Brisbane also recorded rises in the house prices in August, while Sydney, Melbourne, Brisbane and Adelaide all saw uplift in their apartment markets.

“The significant lift in values over the month aligns with a consistent increase in auction clearance rates,” Corelogic research director Tim Lawless says.