Australia’s property powerhouses, Sydney and Melbourne, are breathing a big sigh of relief following some strong home price gains in August. Bouncing back after the last few years, their numbers are looking bright once again.

Across the country, capital city home prices rose an average of 1% in August, driven by a 1.6% rise in Sydney and 1.4% in Melbourne. It was a good month for all our capital cities, with five of the eight enjoying price rises.

Brisbane has remained steady and has continued to grow in value, registering a 0.2% rise in August.

Last month’s rise is being seen as an end to the property price correction that began in the last third of 2017. Sydney and Melbourne’s property prices had reached an unsustainable level, resulting in the price drops we’ve seen. It looks like we’re now seeing a healthy evening out of property prices, but what does it mean for these cities moving forward?

Is it time for Sydney and Melbourne to pop the champagne?

It should also be noted that experts are warning against seeing the bumps in Melbourne and Sydney as the start of a new property boom. This is not that. There had been a growth trajectory the previous two months in those two cities, and certainly August delivered an unexpected rate of growth. However, the rate of price growth over coming months would depend on any policy responses from the Reserve Bank and bank regulator APRA should they feel that these numbers mark an increase to household debt. The Reserve Bank and APRA of course want to stop a return to house prices that created record levels of debt.

The overall message from this news is positive, however. The sudden jump in our two biggest property markets is anchoring a nationwide pick up, and should be seen in the context of a modest overall recovery in property prices.