There is hope that Perth’s plummeting property prices have turned a corner with new market figures indicating a slight improvement in home values.
The Core Logic Hedonic Home Value Index shows house values in Perth endured marginal growth of 0.1% in September, resulting in a 2.9% drop in the past 12 months.
House values dropped by 0.1% in September, while unit and apartments gained 0.8%.
The median dwelling price for Perth is now $462,783.
It comes as the slowdown in the growth in Melbourne and Sydney continued.
CoreLogic head of research Tim Lawless says despite the small drop in Perth’s property values in September, it appeared the West Australian capital had already endured the bottom of the price cycle.
“Perth dwelling values look to be moving through the bottom of the cycle, with values edging 0.1% higher over the month, however, values remain down over the quarter and year,” the report says.
The report found that while the pace of capital gains is slowing, growth in weekly rents had improved in Sydney and Melbourne, but declined in Perth.
“The strongest rental conditions are in Hobart where weekly rents are now rising at 8.5% per annum.
Rental conditions aren’t as strong across Brisbane (-0.1%), Perth (-3.7%) and Darwin (-2.2%) where rental rates continue to slip lower,” it says.
Lawless said: “The more subdued housing market conditions now playing out are likely the result of a combination of factors, namely, the clampdown on investment and interest only lending which is likely to have a knock-on effect for the Sydney housing market more than any other city.”
Courtesy of Realestate.com.au and credited to Nick
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