Talk of a turnaround in Perth’s property sector after prices rose slightly in November has been all but quashed by new data out today, with home values falling 2.1 per cent over the December quarter.
According to RP Data's analysis of house prices over the three months to December, Perth was the worst-performing capital city in Australia, with prices falling by 0.5 per cent across all capital cities.
Last month, RP Data reported that prices rose for the first time since December 2010 in November, with Perth leading all capital cities with a 0.5 per cent rise.
The 1.6 per cent fall in December puts the Perth median house price at $450,000, RP Data said.
Sydney was the strongest performing capital, with home prices rising 0.4 per cent in the month of December and 0.7 per cent for the quarter.
The survey showed Sydney remained the most expensive capital with a median house price of $485,000, while Hobart was the cheapest with a median price of $328,000.
RP Data director of research Tim Lawless said the index showed the slide in house prices coincided with higher rental rates, improving the yields for investors.
"Weekly rents across capital cities were up 1.0 per cent over the December quarter and are now 6.3 per cent higher than at the same time last year," he said.
"The average capital city dwelling is now offering a gross rental return of 4.6 per cent after a consistent trend upwards since mid-2010."