House price growth in Sydney has flattened and values in three other Australian capital cities fell in September, according to the latest residential index by CoreLogic.

Overall there was a 0.9% rise in capital city property prices over the month and a 4% rise in Q3, however, across the capital cities, the month on month results ranged from a 2.4% rise in Melbourne to a 1.9% fall in Hobart while Sydney, posted a month on month gain of just 0.1% in September.

The most substantial capital gains in Q3 were achieved in Melbourne where dwelling values were up by 7.4% followed by Sydney at 4.6 %, Brisbane at 1.9% and Darwin up by 0.4%.

Head of research Tim Lawless pointed out that the flat growth rate in Sydney comes after dwelling values increased by 16.7% over the past 12 months and they are 49.6% higher over the growth cycle to date.

“The slower month on month reading across the Sydney market comes at a time when auction clearance rates have slipped to the low 70% range from week to week and the number of advertised properties has risen,” said Lawless.