19/06/2018 - 14:19

Perth house prices continue to fall

19/06/2018 - 14:19

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The latest data from the Australian Bureau of Statistics shows Perth’s house prices are down on the last quarter, while the ANZ is forecasting further house price falls for the state in the next two years.

Perth house prices continue to fall
The ANZ is forecasting further falls for Perth’s house prices. Photo: Attila Csaszar

The latest data from the Australian Bureau of Statistics shows Perth’s house prices are down on the last quarter, while the ANZ is forecasting further house price falls for the state in the next two years.

During the March 2018 quarter the ABS' residential property price index (RPPI) for Perth declined by 0.9 per cent, following a rise in the December 2017 quarter.

Annually, the RPPI index fell 1.5 per cent.

Perth’s house price index fell by 1 per cent, with the attached dwellings price index falling by 0.2 per cent. 

Overall house prices across Australia dropped by 0.7 per cent in the March quarter, but were 2 per cent higher over the year – the weakest annual growth rate since September 2012.

The ANZ has forecast further falls in house prices nationally over the next year, with Canberra and Adelaide the exceptions. 

ANZ is tipping Perth’s house prices to continue to fall over the next two years, albeit at a lower rate in 2019 (a drop of 1 per cent) than in 2018 (3 per cent).   

But the Commonwealth Securities says it’s not all bad news, believing Perth’s home prices to have bottomed and expects interest rates to be unchanged until at least February 2019.

Another positive indicator is that consumer confidence across Australia is up by 9.2 per cent over the year, according to the ANZ Roy Morgan consumer confidence rating.  

“The weaker housing market reflects a regulatory induced tightening in the supply of credit rather than tighter monetary policy,” ANZ said in a report released today.

“We think, as a result, that the impact on the economy will be less pervasive.

“There are also offsets to the weaker housing market. For instance, we revised up our outlook for wages in the very near term, and larger-than-expected tax cuts are a positive development.”

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