03/10/2016 - 14:02

Perth home prices retreat to ‘07 lows

03/10/2016 - 14:02

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Perth dwelling values tumbled by 2.5 per cent last month to their lowest level in nine years as weak demand continued to cripple the housing sector in Western Australia.

Perth home prices retreat to ‘07 lows

Perth dwelling values tumbled by 2.5 per cent last month to their lowest level in nine years as weak demand continued to cripple the housing sector in Western Australia.

Home prices in Perth fell 2.5 per cent in September, CoreLogic RP Data’s latest statistics revealed today, while the combined value of capital city dwellings rose 2.9 per cent.

In the three months to September, Perth home prices were 3.2 per cent poorer compared with the previous corresponding period, taking the cumulative decline in values to 10.4 per cent since the city’s December 2014 peak, and 5.2 per cent below the previous peak in 2010.

The city’s median sits at $480,000.

The 7 per cent slide year on year has retraced Perth’s dwelling values back to 2007 levels.

“In markets like Perth, where dwelling values have been falling consistently, the slowdown in transaction numbers is related to demand, which is evidenced by the higher number of homes available for sale, as well as the sharp slowdown in migration rates,” CoreLogic head of research Tim Lawless said.

“With advertised stock levels close to record highs in Perth, buyers now have a lot more choice when selecting a property and can negotiate hard on price.”

The latest figures follow recent statistics released by CoreLogic, which showed 20.1 per cent of Perth homes were resold at a loss in the three months to June.

Mr Lawless said Perth has been consistently recording the highest vendor discounting rates at just over 8 per cent on average, as well as one of the longest average selling times at 75 days on average.

Regional Western Australia also experienced the worst of the ‘rest of state’ housing markets, where house values have fallen 12.4 per cent during the past 12 months.

While Perth and Darwin continued to drag national averages lower, Sydney and Melbourne retained their growth pace.

The top performing market for the quarter was Melbourne, where dwelling values pushed 5 per cent higher, due largely to a strong rise in house values which balanced a softer result for the unit market.

Sydney reported a 3.5 per cent rise in house prices in the three months to September.

Melbourne’s median now sits at $590,000 while house prices in Sydney are the most expensive in the country. The city reported a median of $785,000.

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