Sydney and Melbourne house prices surged in February with double-digit annual growth putting the capital cities on track to outstrip the peak of the 2017 property boom by the middle of the year.

Sydney house prices increased by 1.8 per cent in February while Melbourne jumped 1.3 per cent, CoreLogic data released on Monday shows. The surge has pushed Sydney's median house price back above $1 million.

The booming price growth may be a complication for the Reserve Bank board ahead of its meeting on Tuesday, with pressure mounting for a rate cut to a record low to help counteract the impact of the coronavirus outbreak on the economy. Markets put the chance of a rate cut on Tuesday at 90 per cent.

House prices climbed 10.9 per cent in Sydney and 10.7 per cent in Melbourne for the 12 months to February, with median values now at $1,001,357 and $809,719 respectively.