No house price gains for 3 years: QBE

House prices in Perth are expected to fall by 10 per cent from their 2014 peak by June 2019, according to a new report commissioned by QBE.

After peaking in late 2014, Perth’s median house price fell by 5.6 per cent in the 18 months to June this year, QBE said in its BIS Shrapnel report today.

With mining investment reduced and economic conditions weakened, QBE has forecast Perth’s median house price to be 10 per cent below its 2014 peak by June 2019.

“Prices are forecast to soften through the three years to 2019, which is likely to be positive for housing affordability,” QBE Lenders’ Mortgage Insurance chief executive Phil White said.

“It’s expected owner occupiers, including first home buyers, will be stepping in to pick up some of this opportunity in the market.”

QBE's report coincided with a monthly take on the Perth property market by the Real Estate Institute of Western Australia found housing affordability was sustained in September.

REIWA president Hayden Groves said Perth’s preliminary median house price had softened slightly.

“The median house price for the three months to September came in at $525,000, which is 0.8 per cent lower than the three months to August figure,” Mr Groves said.

REIWA’s median for Perth is higher than CoreLogic RP Data’s most recent analysis, which estimated Perth’s median house price to be $480,000 for last month.

Mr Groves also said Perth’s overall median rent eased by $5 to rest at $370 a week for the September quarter.

“This broke down to a median house rent of $380 per week, while the unit median was $350 per week,” he said.

“The improved levels of affordability are providing good opportunity for first time renters to emerge and enter the market, while those in share houses are now finding they can afford to move out on their own.”