After showing signs of recovery, the latest dwelling price results from Core Logic revealed that Perth’s housing market has taken another leg down, with values falling by 0.8% in the June quarter:
With Perth dwelling values now down 11.4% since June 2014:
Unlike Sydney and Melbourne, where dwelling losses have been stemmed by first home buyer stamp duty concessions, Perth’s dwelling price declines have been led by the bottom 25% (“low value”) end of the market:
Sales volumes in Perth have also collapsed to 20-year lows:
Whereas Perth’s rents have collapsed by 18% since December 2014, according to the ABS:
And CoreLogic reports just 3.0% growth in Perth house rents and a 2.1% decline in unit rents over the past 10 years:
The immediate outlook for Perth housing remains poor. Despite construction levels crashing, new dwelling supply continues to easily outpace population growth:
From the second chart above, there were 19,400 net dwelling additions across Western Australia in the year to March, compared to an increase in Western Australia’s population of just 21,395.
This ongoing oversupply should ensure that Perth’s housing market remains in a funk for the foreseeable future.
