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Perth property prices continue downward trend

Natalie HordovWestern Suburbs Weekly

PERTH property prices continued their downward trend in September, dropping 0.8 per cent according to the latest CoreLogic home value index.

They declined 1.9 per cent over the quarter, making Perth the weakest performing capital city.

Nationally the index recorded its third consecutive month of gains, up 0.9 per cent for the month and 1.7 per cent over the quarter.

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The monthly gain was the largest since March 2017.

Source: CoreLogic.
Camera IconSource: CoreLogic. Credit: Supplied/Supplied

National price growth was supported by stronger market conditions on Sydney and Melbourne, which both recorded a 1.7 per cent increase in property values in September.

Source: CoreLogic.
Camera IconSource: CoreLogic. Credit: Supplied/Supplied

While Perth prices were down 21.3 per cent since their peak, results varied across the region and Mr Lawless said splitting the market into quartiles and sub-regions could provide a better understanding of which sectors were firing and which were lagging.

In Sydney and Melbourne the prestige end of the market was driving the strongest capital gains with values up 4.2 per cent and 4.6 per cent respectively over the September quarter.

Source: CoreLogic.
Camera IconSource: CoreLogic. Credit: Supplied/Supplied

CoreLogic head of research Tim Lawless said the opposite was true in Perth where the high end of the market had still declined but was a little more resilient to falling values.

Prices were downs 1.5 per cent over the quarter for the upper quartile, compared with 2.2 per cent for the lower quartile.

The results were more marked over the longer term.

Source: CoreLogic.
Camera IconSource: CoreLogic. Credit: Supplied/Supplied

“While each of the broad valuation cohorts has recorded a sustained drop in values, the reduction has been less severe across Perth’s top quartile where values are down 16.5 per cent since peaking compared with a 27.8 per cent decline across the lower quartile,” Mr Lawless said.

When looking at the capital city sub-regions, five of the 10 weakest performers over the last 12 months were in Perth.

Source: CoreLogic.
Camera IconSource: CoreLogic. Credit: Supplied/Supplied

Mandurah, recorded a quarterly decline of 3.9 per cent, down 11.6 per cent over the 12 months to September and 37.4 per cent since peaking in December 2006.

The south-west (-2.9 per cent) and north-east regions (-2.5 per cent) had the second and third largest declines in values over the quarter.

Mr Lawless said the different performances of the housing market across broad valuation groups and regions highlighted how diverse conditions could be below the surface.

“Factors such as housing affordability, lending policies, market cycles and local economic and demographic conditions can have a significant baring on market activity,” he said.

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