Perth property: Lacklustre end to selling season but city still outshines most of Australia

It was a lacklustre end to the busiest selling season of the year but Perth’s property market is still outshining most other Australian capitals, data reveals.

According to CoreLogic’s Home Value Index, released on Thursday, house values held firm in November and despite recording no growth, Perth was still the second strongest performing market in the country behind Darwin, which enjoyed a slight uptick of 0.2 per cent.

Brisbane and Hobart recorded the steepest declines last month, with dwelling values falling 2 per cent.

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CoreLogic research director Tim Lawless said the Perth and Darwin markets were yet to show signs of a reversal in prices.

“A comparatively healthy level of housing affordability, along with tight labour markets and relatively strong economic conditions have helped to insulate these cities from the downturn so far,” he said.

Real Estate Institute of WA chief executive Cath Hart said the Perth index had hardly changed since May when interest rates started rising.

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“The increases have added $760 per month to a $500,000 mortgage since May, while those on a mortgage of $1 million have seen repayments increase by $1520 per month,” she said.

“Rising interest rates have clearly impacted prices and borrowing capacity in the Eastern States.

“Perth, on the other hand, is very well placed to weather the changes in interest rates.”

Ms Hart attributed WA’s resilience to a strong economy, affordability, steady population growth and one of the lowest unemployment rates in the country.

“These factors are all supporting the property market and there is nothing right now indicating that house prices will fall drastically any time soon,” she said.

The top performing suburbs for house price growth in November were Bentley (up 3.1 per cent to $500,000), Subiaco (up 2.1 per cent to $1,675m), Bayswater (up 2.1 per cent to $720,000), Dawesville (up 2 per cent to $520,000) and Falcon (up 1.9 per cent to $453,500).

Other suburbs to record strong house price growth were Sorrento, Parmelia, Kelmscott, Heathridge and Tapping.

It comes as listings on REIWA’s website were up 5.8 per cent in November to 8642 — but still 5.1 per cent lower than a year ago.

“The delays in the building industry coupled with some hesitancy are affecting the number of properties for sale,” Ms Hart said.

“People who are building new homes are reluctant to list their current home before their new home is complete.

“People looking to buy an established home are also waiting to sell until they have found a new home.

“This reduces the number of properties for sale.

“Building completions are expected to improve over the next 18 months and when they do, the low supply of established housing will start to improve.”

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