Perth records fastest property downturn in four decades

Résumé détaillé

The latest report from Cotality states that dwelling values across the metropolitan area are now 8.9 per cent below the record high in April.

Perth’s home values have plummeted over the past six months, with new figures revealing it to be the fastest decline in property prices over the past four decades.

According to Cotality, dwelling values across the metropolitan area are now 8.9 per cent below the record high in April – the steepest decline over a comparable period in 40 years. The only capital city to record a steeper decline was Sydney.

The number of houses sold in Perth also declined by 21.4 per cent, the biggest drop nationally, over the 12 months to October.

And Perth houses spent three times longer on the market when compared to just three months ago, sitting at 28 days on average.

Cotality’s head of research, Gerard Burg, said the downturn in the housing market reflected a build up in pressures on the demand side, including affordability constraints, higher interest rates, cost-of-living – particularly related to energy prices – weak consumer confidence and changes to investor policies in the federal budget.

“Initially, the downturn was led by Sydney and Melbourne, however the longer downturn in these markets has seen more time for an adjustment on the supply side, meaning fewer homes being listed to bring more balance between supply and demand,” he said.

“This process has happened more slowly in markets like Brisbane and Perth, meaning that we’ve seen a large increase in the stock of available homes to purchase.

“The total listings of properties for sale in Perth sat 8 per cent above the five-year average in the four weeks ending November 8, compared with around 55 per cent below average at the end of January.”

Burg said this meant it was now a buyers’ market – but “only because so many potential buyers have been pushed to the sidelines”.

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