Housing data shows 10-year WA decline

Two reports out today highlight the weakness in Western Australian property prices over the past decade, including dramatic falls in some regional pockets, but the upside is the state has the most affordable housing across the nation.

A CoreLogic report, which analysed property price movements over the past 10 years, revealed declines across the state, with Perth’s northern suburbs registering the only increases.

Since 2008, house prices in Perth’s inner suburbs, which includes the western suburbs, have fallen 9 per cent, while Perth’s south-west (-0.3 per cent) and south-east (-0.6 per cent) also noticed price decreases.

The state’s regional property market has also suffered over the past decade, with CoreLogic’s data showing WA’s outback south (-34 per cent) and north (-38.3 per cent) as the two worst-performing regions in the country.  

The numbers were even worse for regional unit prices, with outback south (-65.7 per cent) and north (-73.3 per cent), again leading the country for the biggest price falls since 2008.

Unit prices in Perth’s inner suburbs also declined 19.5 per cent over the period, along with the north-west (-13.4 per cent) and north-east (-13.7 per cent).

Meanwhile, the Housing Industry Association’s latest affordability report has named Perth as the most affordable capital in Australia.

An index reading of 100 indicates an affordable market whereby mortgage repayments account for exactly 30 per cent of earnings under current market conditions.

In the year to June, Perth’s affordability index improved 6.2 per cent to sit at 111.7, well above the next best capital of Darwin at 95.6.

“With house prices in Perth continuing their steady – even if prolonged – descent, the city has retained its newly-acquired mantle of most affordable market,” the report said.

“The housing affordability index for Perth registered 111.7 in the June quarter, indicating that mortgage repayments for homes at current market prices account for less than 30 per cent of average full-time earnings.

“Affordability in Perth is not only up over the quarter and the year, but also well up on its long-term levels.

“Massive resource booms in WA over the past two decades have had the economic side effect of rapid dwelling price growth, resulting in poor affordability.”

The report also showed a decline of 0.3 per cent in Perth house prices over the past 10 years, reflecting similar results to the CoreLogic data.