Sydney prices fell 1.2 per cent in the June quarter from March, triggering the city's fastest annual price decline in more than nine years, official figures on Tuesday showed.

The 3.9 per cent annual decline was the biggest the NSW capital had seen since March 2009, when values dropped 5.2 per cent over the 12-month period. Sydney's decline, coupled with falling values in Perth and Darwin were sufficient to trigger a decline across the country's eight capital cities - the first such fall in almost six years.

"Although momentum has been weak for some time now, nationwide annual price growth across all dwelling types turned negative in the second quarter," JP Morgan economist Henry St John said.

Sydney housing prices are falling at the fastest rate in the country. Getty Images

Credit curbs for investors, unaffordable dwelling prices and flat wages growth have reined in the east coast-led residential market boom and will keep cooling the market. Sydney house prices will fall 5.1 per cent this year, and then tread water in 2019 with only a 0.6 per cent gain, according to forecasts by Moody's Analytics and Corelogic this week said.

Home prices for all capital cities fell 0.7 per cent in the June quarter from March, the ABS found, in line with economists' expectations, and slightly better than Corelogic's recorded decline of 0.8 per cent for the quarter.