Rise in Perth house prices tipped

A research collaboration between CoreLogic and ratings agency Moody’s has predicted a turnaround in Perth’s depressed property market this year, with a 2.8 per cent rise in detached house values foreshadowed.

However, the report suggests while conditions are improving, there is still a long way to recovery as the drag from the mining downturn slows.

The CoreLogic-Moody’s Home Value Index forecast detached home prices in Perth to increase by 2.8 per cent in 2017, after falling 4.1 per cent last year.

Apartment values are also tipped to rise, by 5.6 per cent, following a 3.3 per cent decline last year.

“The recovery will continue through 2019 thanks to slower supply growth; building approvals peaked in mid-2014 and have since fallen 48 per cent,” the report said.

“The downturn in mining investment continues to weigh on Perth’s housing market, but the recent rally in key commodity prices suggests that the fall is over.

“However, Perth’s housing market is unlikely to rebound sharply because commodity prices will remain well below the levels experienced during the boom in 2011.

“Perth’s housing market is showing signs that the worst is behind.”

On national scale, detached housing values across the capital cities are forecast to rise by 5.6 per cent this year.