THE property price growth slowdown has well and truly taken hold with new figures revealing little growth in most capital cities and a backward slide in others.

Sydney’s median dwelling prices dropped for the first time in three years during the December quarter according to the latest Australian Bureau of Statistics figures.

Although it was not the worst performer during the period, that honour went to Darwin which recorded a drop in median price of 1.8 per cent.

Of those capital cities which did record price increases during the quarter, many only experienced minor rises.

Canberra was the best performer with its median price up 2.8 per cent, followed by Hobart 2.5 per cent, then Melbourne and Brisbane both with increases of 1.6 per cent.

Adelaide values had a minor increase of 0.9 per cent while in Perth values increases just 0.5 per cent during the quarter.

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Property Council of Australia chief of policy and housing Glenn Byres said nationwide price growth was moderating.

“It has now fallen from 4.7 per cent in the June 2015 quarter to just 0.2 per cent in the December quarter,’’ he said.

Mr Byres said the results had been influenced by a record level of new housing construction and a reduction in the number of property investors in the market.

“We are seeing benefits of policies that have increased housing supply across Australia,’’ he said.

Mr Byres was concerned though that any possible changes to negative gearing could upset the current stability of prices.