While Perth property values fell in the past year, the longer term results are not as discouraging

Stock image.
Stock image.

PERTH dwelling values fell 5.6 per cent in the 12 months to January 2019 according to the CoreLogic Home Value Index.

Darwin, Melbourne and Sydney also saw values fall, while they were static in Brisbane and rose in Darwin, Canberra and Hobart.

Sydney recorded the greatest decline at 9.7 per cent.

Hobart saw the highest growth at 7.4 per cent.

Values fell 7 per cent in regional WA.

Nationally, dwelling values fell by 5.6 per cent over the year, the largest annual decline since March 2009.

Source: CoreLogic.

While it is easy to get caught up in the short-term property pain, a longer term look at the property cycle paints a different picture.

In the 20 years to January 2019 Perth recorded 148 per cent growth in dwelling values.

Source: CoreLogic.

Prices may have more than doubled, but it was still one of the lowest rates of capital city growth, reflecting the recent market decline.

Source: CoreLogic.

Despite seeing 63.5 per cent growth, Perth was one of the weaker performers in the five years from 1999 to 2004, but outstripped every capital except Hobart from 2004 to 2009, recording 52.3 per cent value growth in that time.

The standout performer of that period was the WA regional market, which saw 80.9 per cent growth on the back of the mining boom.

Source: CoreLogic.

The GFC and end of the boom resulted in just 1.8 per cent value growth for the WA regional market in the next five years to January 2014.

The Perth market fared slightly better with 18 per cent growth.

In this time Sydney and Melbourne surged, with growth over 30 per cent.

Source: CoreLogic.

The five years from 2014 to 2019 saw the Perth market decline, falling 15.6 per cent.

The regional market fell 22.6 per cent.

Source: CoreLogic.

Corelogic’s Cameron Kusher said while past performance was certainly not an indicator of future performance, the data showed that over the past two decades most regions had seen some substantial increases in dwelling values.

“The data also shows that over five year increments, the best regions for growth in a given five-year period are typically the weaker areas for growth over the following five years.”

Perhaps the next five years will be brighter for WA.