June 02, 2011 – According to the latest RP Data-Rismark Hedonic home value index, Perth house values have recorded its largest fall in any capital city by 7.1 percent in the 12 months to end April, seasonally adjusted, which is said to be the greatest fall nationwide.
According to statistics released just this week by RP Data-Rismark, Perth’s median price for houses for sale and units was just 2.3 per cent, that is lagging almost $50,000 behind Sydney through February and March 2009.
Perth’s house prices have threatened to top those in Australia’s biggest city following the global financial crisis that hit in October 2008.
With Brisbane’s homes for sale values dropping 6.8 per cent, seasonally adjusted, the capital city has also suffered a similar fate to Perth.
According to the home value index for the combined capital city dwelling markets, it has showed a declined by a seasonally adjusted 0.3 percent in the month of April, while values dropped 1.2 per cent in the three months to April.
Tim Lawless, RP Data research director surmised that the expensive suburbs have helped drag the overall Australian property market down.
Premium Property losses Cause Decline
The greatest slump in Perth’s house values is said to be caused by losses in premium properties.
As the instability of the luxury end of the housing market is showing, the top-end housing market in Perth was impacted the biggest as it dropped by 12.1 percent in value over the 12 months to the end of April
Accounting for 60 per cent of the Perth’s property market, mid-range homes values has dropped by 4.7 percent for the same period.
Perth was recorded as the second-weakest performer for the April quarter, showing house prices dropping by 3 percent, seasonally adjusted. This figure was only just behind Brisbane, which has also suffered by a drop of 3.1 percent following the recent catastrophic flooding.
The weak conditions observed in the Perth and Brisbane markets combined with the comparatively high capital gains recorded in Melbourne and Sydney has forced a widening housing cost gap.
According to Mr. Lawless, both Perth and Brisbane home values has continually experienced a more significant correction than other capitals.
