15/12/2015 - 13:53

Perth home prices fall 2.4%

15/12/2015 - 13:53

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Perth residential property prices fell 2.4 per cent in the September quarter, as the Real Estate Institute of Western Australia tipped eight suburbs to watch next year.

Perth home prices fall 2.4%
Perth residential property prices fell 3.3 per cent through the year to the September quarter.

Perth residential property prices fell 2.4 per cent in the September quarter, as the Real Estate Institute of Western Australia tipped eight suburbs to watch next year.

Official figures by the Australian Bureau of Statistics confirmed a cooling in the property market, with residential price rise moderating in the September quarter.

The increase in capital city home prices averaged just 2 per cent in the three months to September, down from the 4.7 per cent rise in the previous quarter.

Perth and Darwin had the weakest outcomes, being the only cities to post a fall in prices in the September quarter and in the year.

Residential prices in Perth fell 2.4 per cent in the September quarter, following a 0.9 per cent fall in the June quarter and a 0.1 per cent fall in the March quarter.

Sydney and Melbourne were the only cities to post home price rises of more than 2 per cent, with Sydney prices up 3.1 per cent during the quarter but significantly lower than the 8.9 per cent increase clocked in the June quarter.

It was followed by Melbourne with 2.9 per cent in prices, compared with 4.2 per cent in the previous three months.

"Tighter lending policies are driving investors out of the market. Falling interest from foreign buyers and growing affordability problems are also contributing to the cooling down," CMC Markets chief market analyst Ric Spooner said.

Over the year to September, the residential property price index was up 10.7 per cent, the Australian Bureau of Statistics said today.

The index fell 3.3 per cent through the year to the September quarter in Perth.

At 19.9 per cent, Sydney's annual price growth was more than twice as fast as the next best city, Melbourne.

The harbour city has enjoyed double-digit growth since the September quarter of 2013.

"Moderation is taking place, but the September quarter data is not showing the full picture. The December quarter data will show the slowdown more clearly," CommSec economist Savanth Sebastian said.

Australia's Big Four banks struck out-of-cycle mortgage rate hikes in November, and the full impact from these would be fully reflected in upcoming home price data, Mr Sebastian said.

Meanwhile, Reiwa has revealed eight suburbs in WA to watch next year, in its latest analysis of house sales volumes for the year to October.

The eight suburbs, which are Brabham, Trigg, Mount Richon, Alkimos, Caversham, Bedford, Willagee and Bayswater, showed the most growth in sales volumes for the year to October.

Reiwa deputy president Damian Collins said the analysis showed that first home buyers and home owners looking to trade-up were still big influencers in the local property market.

“The eight Perth suburbs were quite evenly split between the first home buyer and trade-up market,” Mr Collins said.

“This tells us that first home buyers are taking advantage of Perth’s adjusting housing market to secure their first home, while homeowners looking to trade-up are seeing great opportunity in the current market to take their next step in property ownership.”

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