Property values in Sydney and Melbourne have increased for the first time since 2017, according to CoreLogic’s monthly home value index. 

Sydney dwelling values recorded a rise of 0.1 per cent in June, and Melbourne recorded a rise of 0.2 per cent. 

This was the first monthly gains for Sydney in almost two years since its market peak in July 2017, and first for Melbourne in 19 months since its peak in November 2017. 

"Stability within the federal government, along with the removal of uncertainty surrounding changes to negative gearing and capital gains tax discounts, has brought about increased certainty and boosted confidence in the housing market," CoreLogic’s research director Tim Lawless said. 

"Aided by the housing downturn, we have also seen an improvement around housing affordability, although dwelling values remain high relative to household incomes in Sydney and Melbourne; add to this lower mortgage rates and the high likelihood that interest rate serviceability tests are set to improve,” Mr Lawless said. 

"Potentially, we are seeing the first signs that the top end of Sydney and Melbourne's housing markets are leading the recovery trend,” he added. 

CoreLogic’s head of research Cameron Kusher agreed and said that the worst may be over, as the consistent rate of decline have slowed down particularly in Sydney and Melbourne.  

As of now, the median value for Sydney and Melbourne property is approximately $778,000 and $619,000 respectively.  

However, the national property values dropped by 0.2 per cent in June, showing a 1 per cent decrease over the past quarter and 6.9 per cent decrease over the past year. 

In addition, all other states experienced a drop in the month of June, adding to the overall fall in national property values. 

Property values in Brisbane and Adelaide fell by 0.5 per cent in June, Perth by 0.7 per cent, Canberra by 0.9 per cent and Darwin by 1.7 per cent.