Perth's prestige western suburbs, notably Mosman Park, have been ranked among the nation's worst 25 performing suburbs within capital cities, with median house prices falling most comparitively since the peaks of the property boom.
Across the nation, 20 per cent of the most expensive capital city suburbs recorded a fall in values of 5,4 per cent over the 12 months to April 2011, compared with a 0.5 per cent drop at the more affordable end of the market, according to research by analysts RP Data.
Mosman Park house values have dropped a staggering 43.1 per cent since August 2008 to be ranked as the weakest performing suburb nationally, RP Data said, while East Fremantle median home prices have dropped 30 per cent since October 2008 to be ranked third weakest.
RP Data senior analyst Cameron Kusher said while the low number of transactions in Mosman Park had affected the results, there was no doubt demand in the suburb had declined.
Also making the list were Nedlands, which was ninth with a 22.7 per cent drop since January 2008; Cottesloe at 11th, with a median home values fall of 21.6 per cent since Jan 08 and Claremont at 13th, after a 20.8 per cent slip since January 2008.
Cambridge (-9.9 per cent since November 2010), Subiaco (-5.1 per cent since June 2010) , and Kalamunda (-2.3 per cent since July 2010) were the remaining Perth suburbs that made the list.
Suburbs in Sydney made up seven of the 25, while Adelaide, Hobart and Melbourne had three suburbs each.
The only Western Australian suburbs ranked in the top 25 nationally for smallest declines in house prices since their peak were Cockburn (flat since June 2010) and Vincent (-0.3 per cent since March 2010).
"Today's analysis certainly supports the broad trend that indicates the weak performance of the premium sector of the market is having a significant impact on the overall market and subsequently sentiment also," Mr Kusher said.
"With subdued residential property over the markets likely to persist over the next year, we anticipate that the premium and most affordable segments will underperform."
