01/07/2015 - 14:39

No capital growth for Perth houses

01/07/2015 - 14:39

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No capital growth for Perth houses

Perth median house prices remained largely flat in June, recording a 0.4 per cent fall, taking the yearly reduction to 0.9 per cent, according to market analysts CoreLogic RP Data.

The June result made Perth Australia’s second-weakest performing capital city, only behind which Darwin recorded a 3.1 per cent fall in median values.

RP Data said Perth’s median house price was $525,000, while the median unit price was $425,000.

Nationally, dwelling values rose 2.1 per cent in June, contributing to a 9.8 per cent annual rise.

CoreLogic RP Data head of research Tim Lawless said the resources downturn had negatively impacted the Perth and Darwin markets.

“The Perth and Darwin markets are weakening in line with the downturn in the resources sector and an associated weakening in infrastructure investment and a marked slowdown in migration,” he said.

Mr Lawless said interest rate cuts in February and May had contributed to pushing capital gains higher across other cities.

“Growth conditions had been moderating from April last year through to the end of January 2015,” he said.

“With the RBA cutting the cash rate in February, there was an instant buyer raction across the Sydney and Melbourne housing markets where auction clearance rates surged back to levels not seen since 2009.

“Capital gains once again accelerated and we are now seeing Sydney and Melbourne homes selling in record time; Sydney homes are selling in just 26 days and Melbourne homes are selling in 32 days.”

The results are in line with figures released by the Real Estate Institute of WA last month, albeit from May, which indicated the Perth median house price was steady at $547,000.

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