Melbourne housing prices have fallen for the second year in three, dipping 0.4 per cent in the year to June, as high borrowing costs and a high concentration of lower-priced units pushed the city’s median price below that of smaller cities Perth and Adelaide.

Meanwhile, Sydney house prices rose at a slower rate of 1.3 per cent year-on-year compared with 6.9 per cent a year earlier, as the number of homes on the market surged and the effect of higher interest rates was also felt, new figures from Cotality (formerly known as CoreLogic) show.