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Perth home prices rise after three-year decline, data shows

Emma Young

Those watching Perth's lacklustre housing market will welcome new figures showing house values in the city rose 1.09 per cent in March after the end of the mining boom sent prices in steady decline over the past three years.

Data from property analysis company CoreLogic also shows overall dwelling prices rose by 0.97 per cent while units failed to keep pace, dropping a further 0.73 per cent to make a year-on-year drop of 5.51 per cent.

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Over the past year, Perth dwellings have dropped 4.68 per cent in value, according to the latest Daily Home Value Index.

Overall, capital city home values moved 1.4 higher in March and contrasted the story in Perth with a combined annual growth rate of 12.9 per cent, the highest since 2010.

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Golden children were Sydney, where home prices lifted 1.41 per cent over the month to make 19 per cent for the year, and Melbourne, where they lifted 1.92 per cent in March to make 16 per cent over the year.

Brisbane and Adelaide followed with more modest improvements.

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Perth placed fifth of the eight capitals, above Hobart, Darwin and Canberra, in terms of median dwelling price at March 31, with a median dwelling price of $475,000.  

Perth and Darwin were the only capitals where dwelling values dropped over the past year.

A CoreLogic analysis entitled "Boom... What Boom?" released on Monday said while Perth values consistently rose through the first seven or so years of the past decade, they had been in steady decline since 2014.

They declined 3.3 per cent from 2010-17, a stark contrast to the almost 200 per cent increase of 2000-07. 

Sydney was the only city to record higher value growth this decade compared to last - combined capitals home value growth so far this decade, nearly 45 per cent over 2010-17, is less than half of the almost 100 per cent increase of the same period last decade (from 2000-07). 

In CoreLogic's recently released list of the top 25 council areas for median house price rises for the past two decades, Sydney and Melbourne featured heavily. Only one WA shire made the list – Nannup, with a 9.7 per cent growth per annum placing the median price now at $372,000.

Investor activity has been sluggish in WA so this may indicate that as the economy has weakened and people have migrated away from WA, perhaps home owners are looking to rent out their home rather than selling into weak market conditions.

There were far more WA entries on the list of the worst shires for average house price increases during that time, including the first three with Coolgardie, Yilgarn and Dundas where prices grew by just .4 per cent, .5 per cent and 1 per cent. Other WA shires to make that list were the East Pilbara, Morawa, Bruce Rock and Roeburne.

"Not one of these council areas is situated in a capital city, highlighting that there is often a divide between the performance of capital city and regional housing markets," the analysis said.

"Most of these council areas are in regional areas linked to single industries such as mining or agriculture.

"The past, of course, is no indicator of future performance, but the data provides a good insight into the areas which are likely to see stronger price growth in the future. Regions that have diverse economies and are not reliant on single or a handful of industries are likely to see higher levels of housing demand."

WA shires, mostly in Perth, also featured heavily on the list of regions with the greatest increase in rental advertisements over the past year. 

The shires included Kwinana, where the rates of rental advertisements had risen nearly 50 per cent, down to Armadale, Belmont, Mandurah, Gosnells, Cockburn, Canning, Bunbury, Bayswater, Stirling and Rockingham, where rental advertisement rates had risen 23.5 per cent. 

"Investor activity has been sluggish in WA so this may indicate that as the economy has weakened and people have migrated away from WA, perhaps home owners are looking to rent out their home rather than selling into weak market conditions," the analysis from CoreLogic said. 

Recent figures released by The Real Estate Institute of WA show Perth houses are taking, on average, 66 days to sell. 

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