Property values in central Perth, including the wealthy suburbs of Peppermint Grove, Cottesloe, Subiaco and the CBD, plummeted 12.3 per cent in the year to June, according to RP Data research.
Only Beaudesert Shire in Queensland (-13.9 per cent) and Weston Creek-Stromlo in the Australian Capital Territory (-14.1 per cent) performed worse.
In the past five years, central Perth has barely kept pace with inflation, with prices growing an average of only 2.8 per cent per year.
Now most high end suburbs across the country have been suffering from falling values, while the middle range and more affordable suburbs have been performing better over the last year or so. But this has been more obvious in W.A. where the most expensive 20 per cent of Perth suburbs lost 13.4% in property value in the year to June.
During the same period, the middle and low ends of the market shed 4.5 per cent and 4.4 per cent, respectively.
“Prices got a bit too high in those areas and the market hasn’t been willing to pay them,” he said. “The market has been easing for the last four years so it’s not really surprising to see that growth has been pretty poor.
“In real terms, property is now cheaper than it was five years ago.”
Despite the huge resources boom pouring billions of dollars into infrastructure, I still see some time before Perth property prices start to pick up. It will take some time for general consumer confidence to pick up and that a fundamental requirement for a strong property market.
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