Australian house prices fell even further in March, driven by sliding house values being reported in Melbourne and Sydney's most expensive areas.

CoreLogic on Monday reported that dwelling values dropped by 0.6 per cent last month to be down by 7.4 per cent since their peak in October 2017.

Melbourne dwelling values dropped 0.8 per cent last month, with house values off by 1.1 per cent. Over the past 12 months, Melbourne house values have subsided by 12.4 per cent to be the worst performed of any capital.

Dwelling values in Sydney dropped by 0.9 per cent in March to be 10.9 per cent lower over the past year. House values, however, have fallen even further, down by 0.7 per cent last month to be 11.8 per cent off since March 2018.