Perth house price pain continues

The median price of a house in Perth decreased by 0.5 per cent for August, recording the largest fall of all state capitals, according to the latest CoreLogic data.

It is now down 20.6 per cent from its June 2014 peak.

The Perth median is currently $437,558, which represents an 8.8 per cent fall in value during the past 12 months.

House price values in Perth’s inner suburbs have fallen by 9.7 per cent during this period.

In Mandurah, the median value has contracted by 10.6 per cent since the same time last year, making it the third-worst performing sub-region in Australia.

Conversely, the median house price across Australia’s capital cities rose by 0.8 per cent over August.

This was the largest monthly increase since April 2017.

Adelaide recorded a fall of 0.2 per cent in August, while prices in Sydney, Melbourne and Brisbane were up by 1.6 per cent, 1.4 per cent and 0.2 per cent, respectively.

AMP Capital chief economist Shane Oliver said the rebound in the Sydney and Melbourne property markets would present a dilemma for the Reserve Bank of Australia in terms of cutting interest rates further.

“This will no doubt cause some consternation at the bank,” Mr Oliver said.

“But as we saw over the 2011-17 period the RBA will do what it believes is right for the “average” of Australia as opposed to one sector or a couple of cities.”