House prices fall in January

Perth house prices fell 0.4 per cent in January, according to the latest data from CoreLogic, though its figures have disguised big gains in some of Perth’s more affluent suburbs.

The January results led to Perth recording a 2.6 per cent drop in house prices compared to this time last year, with Darwin (-6.4 per cent) the only other capital city to register a fall for the year.

Overall the CoreLogic Home Value Index for capital cities rose 3.2 per cent for the year to January, with Hobart (12.4 per cent) and Melbourne (8 per cent) recording the highest levels of growth.

Figures from the Real Estate Institute of Western Australia reveal significant house price growth in some of the city's pricier suburbs in 2017, with North Fremantle (26.3 per cent), Applecross (24 per cent) and Dalkeith (20.9 per cent) rounding out the top three price growth suburbs for the year.

Mount Helena, east of Mundaring, recorded a 20 per cent increase in house prices while Leederville (17.7 per cent) and Bicton (17.6 per cent) also registered strong growth.  

Meanwhile, data from the Domain House Price Report shows Perth’s median house price increased 0.5 per cent in the December quarter, resulting in a 2.5 per cent decrease for the year.

Unit prices improved 1 per cent in the December quarter, with a 1.7 per cent drop for the year.

“After multiple consecutive quarters of house price declines and fluctuating unit prices, the Perth market is showing signs of growth,” Domain data scientist Nicola Powell said.

“The annual pace of decline in Perth house prices has slowed compared to the steeper falls recorded in 2016, and the annual unit price decline is at its lowest in almost three years.

“Perth’s housing market outlook for 2018 depends largely on whether the city’s economy and population track upwards throughout the year.”