Perth's property market remains Australia's battler, with new figures released today showing median house prices in Perth fell by nearly 3 per cent more than any other capital over the three months to May.
Market analysts RP Data-Rismark's Hedonic Home Value Index for the month of May showed a 4.2 per cent fall in median price values over the three months to May in Perth, taking the year-on-year price drop to 7.5 per cent.
The next biggest fall across Australia was in Hobart, which experienced a 1.9 per cent drop in median house prices for the May quarter.
RP Data put the current Perth median house price at $462,500.
The report showed nationwide median house prices dropped 1.2 per cent over the May quarter, for a 2.3 per cent drop year-on-year.
Capital city home values have now fallen for the last five consecutive months, to come in at $470,000.
The best performing capital was Darwin, with values up 2.1 per cent over the quarter, followed by Sydney (down 0.1 per cent) and Canberra (down 0.7 per cent).
In other states, rental yields are improving, according to RP Data, but Perth still ranks as the country's third weakest market, with yields of 4.9 per cent.
The best rental yields were in Darwin (5.7 per cent), Canberra (5.4 per cent) and Brisbane (5.2 per cent).
"Despite what appears to be fairly strong fundamentals, the Perth housing market doesn't appear to be turning just yet," RP Data research director Tim Lawless said.
"For a city that is recording rapid population growth, low unemployment and a large private capex boom, house prices have nonetheless been contracting since late 2007 after years of above average capital growth in the pre-GFC period.
"Today the critical missing piece of the puzzle seems to be buyer demand."
