In the past three years, the property prices in Perth have declined by more than 10 per cent. A recent report however, suggests that there is some evidence of relief with regards to the rate of decline.
In other words, this report shows that the decline of housing prices in Perth is potentially slowing down.
The CoreLogic Hedonic Home Value Index shows that house values in Perth have fallen by 2.6% so far this year. This sets up Perth as being the worst performing capital in Australia.
In August 2017, the property prices in Perth dropped by a further 0.8%, compared to the fall of 1.3% seen in July.
Housing prices overall suffered a 0.9% drop, with units falling by a further 0.6%. This means the median property price in Perth sits at around £463,000.
The data collected for August, suggested that Perth and Darwin continued to see declining house values, with a downwards trend over the previous month and quarter. The annual trend however, highlights that the rate of decline may be easing overall.
Since its peak performance rate in 2014, Perth prices have dropped by a whopping 10.8%. The cumulative decline across Darwin was even more severe, set at 18.6% since the market peak performance.
Despite this poor performance, Tim Lawless of CoreLogic suggests that Perth is still one of the most affordable markets in the country – with a silver lining around a declining market improving affordability for many buyers.
The Western Australian Housing Minister: Peter Tinley, told the Committee for Economic Development on Tuesday, that low income families will still be priced out of the property market in the Perth area, despite the softening housing values.
Tinley claims that the shortage of affordable housing in Perth, alongside a stagnant wage growth rate. The high cost of living has also meant that lower income earners are unable to realise the classical Australian dream of owning their own home.
According to CoreLogic data, national dwelling values remained quite flat across Australia during August. Capital city values grew by 0.1% – simultaneously however, regional dwelling prices fell by 0.2%.
The Corelogic report suggests that the slowdown in growth is most noticeable in Sydney, where the Melbourne market has become more resilient. This is evident in the fact that auction rates have remained consistently above 70%.