Cracks are showing in the Sydney property market, with prices now falling for the first time over a 12-month period since the boom began.

The harbour city recorded a 0.5 per cent drop in housing prices in the year to February, CoreLogic data released on Thursday shows. This figure includes apartments and houses.

The median property value now stands at $880,743, after the first 12-month decline since 2012.

Over the three months to February, Sydney prices dropped 2.4 per cent. This was the weakest result in the country.