he strongest quarterly growth in house and unit prices since December 2007, according to Australian Property Monitors (APM).

The recovery was led by the top-end of the market, with median prices in the more expensive half of the market in Sydney, Melbourne and Brisbane growing by nearly double the rate of those in the bottom half. The results indicate the property market is now in recovery mode with prices having reached their bottom, according to APM.

The two largest property markets, Melbourne and Sydney, recorded price increases while Brisbane and Perth were the only markets to see prices fall back to June 2008 levels.

In Melbourne, the median house price increased by +5.8% during the quarter, with prices up by +4.1% for the 12 months ending in June.

In Sydney, the nation’s largest property market, house prices grew by +3.7% in the June quarter, the first quarter of median price growth for the city since December 2007.

However, Darwin experienced the strongest results, with housing prices growing by +11.2% in the quarter contributing to a 12-month increase of +17.3%. Another strong market was another strong market, with prices rising +7% in Q1. Canberra house prices rose by +2.4%, while Adelaide recorded a +2% rise in housing prices.

Brisbane prices rose by +1.7% in the June quarter, but prices still remain down by -4.5% for the 12 months ending in June. Perth housing prices recorded a -0.8% decline in the quarter, contributing to an annual fall of -4.4%.