Sydney's median house price rose to $875,000 in the June quarter, marking the first increase in a year as buyers returned to the market after the federal election and greater optimism about prospects for the property market.

The higher median price - up from $870,000 in the previous three months - was accompanied by a slight gain in the median house price in Brisbane and stronger gains in Hobart and the ACT. The rise, however, failed to arrest a steady decline in Sydney's residential index for detached homes, which fell for a sixth straight quarter, the Australian Bureau of Statistics said on Tuesday.