Amid surging property prices in other capital cities, Brisbane houses and units became cheaper, a new quarterly report shows.

The median house price fell 0.9 per cent to $521,152 and apartment prices slumped 2.9 per cent to $367,518, the biggest quarterly fall of all mainland states, the Domain Group September House Price report showed.

In the same period, Melbourne house prices grew 3.1 per cent, Sydney by 2.7 per cent and Hobart’s prices rose 2.3 per cent.

Domain Group chief economist Andrew Wilson said the backtrack in house prices was a speed bump in a strong year of growth.

“The September quarter is always a soft time for Brisbane’s house prices, and the end of the year is expected to be a lot stronger,” Dr Wilson said.

However, Dr Wilson said apartment prices painted a more ominous picture, which are now the lowest since December 2012.

“While the drop in house prices is seasonal, there’s no hiding unit prices are a longer-term issue,” Dr Wilson said.

“Unit prices have been falling now for three years, and in the short-term, I can’t see it changing,” he said.

Propertyology managing director Simon Pressley said interest rate cuts intended to encourage buyers had almost become a “blunt instrument”.

“Before when the Reserve Bank reduced interest rates it would give buyers a spring in their step,” Mr Pressley said.

“But with continued reductions there seems to be a change in consumer psyche where people think things must not be OK,” he said.

He said detached houses in middle-ring suburbs were the most popular with buyers.

“Houses between $500,000 to $1,000,000 are seeing the most buyer activity – I wouldn’t say it’s booming, but it’s strong and solid,” he said.

“As for apartments, there are some people buying, but there is a growing awareness of the increasing supply, and with good reason, more are staying away.”

But Real Estate Institute of Queensland spokeswoman Felicity Moore said the outlook for the apartment market is positive over the medium to long term.

“For the past five years, a significant level of supply has come onto the market – more than ever before in Brisbane’s history in such a short timeframe – and this will have the inevitable impact of softening apartment prices and rents,” Mrs Moore said.

“However, as with all things, this too shall pass and we expect that our continued population growth will eventually absorb this excess supply and apartment owners will realise real capital growth.”

A Local Government Area breakdown shows Ipswich, where house prices grew by 0.5 per cent, was the strongest growth region over the quarter.

Logan and Moreton Bay recorded 1.9 per cent and 1.1 per cent price declines, respectively, Brisbane City and Redlands remained flat.