30/11/2010 - 09:25

Perth house prices fall further

30/11/2010 - 09:25

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Perth house prices have continued their downward slide falling 1.8 per cent in October according to the latest RP Data-Rismark Hedonic Home Value Index.

Perth house prices fall further

Perth house prices have continued their downward slide falling 1.8 per cent in October according to the latest RP Data-Rismark Hedonic Home Value Index.

Perth was the weakest performing Australian capital city in the three months to October falling a total of 3.8 per cent.

Hobart (-0.6 per cent) and Brisbane (-1.6 per cent) were the only other city to record a fall over the same period.

In contrast, home values in Canberra, (+2.4 per cent), Darwin (+1.7 per cent), Sydney (+0.8 per cent) and Melbourne (+0.5 per cent) all rose.

Nationally dwelling values were up a modest 0.3 per cent in October.

But RP Data's research director Tim Lawless said this months rate rise, bank top-ups, declining clearance rates, and a rising stock of unsold homes hinted a tough times ahead.

"Since the market started to cool the cumulative decline in dwelling values to the end of October has been less than one per cent across capital cities, suggesting a market that is slowing at a controlled pace," he said.

"Of course, the October data doesn't include any effect from the November interest rate rise, which we expect will have cause conditions to cool further."

The cost of a unit in Perth also continued to drop in October down 3 per cent to $395,000.

The value of units in Perth have fallen 6.6 per cent to October and 4.5 per cent over the past 12 months.

Rismark International joint managing director Ben Skilbeck said, "Since the RBA is unlikely to lift rates in December, the key swing variable will be the extent to which rates increase further in 2011."

"Rismark analysis has shown that aggressive rate hikes can put downward pressure on prices," he said.

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