Housing prices across Australia's capital cities have risen 3.5 per cent for the year to September 30, the weakest growth in more than three years even as the value of all the nation's dwellings rose to $6.2 trillion.

Melbourne was the best performer, with an annual home price increase of 6.9 per cent, data from the Australian Bureau of Statistics shows. This was followed by Hobart, which recorded an average price increase of 6.8 per cent for the year to September 30. Canberra posted price increases of 5.5…