October was a very bad month for Perth’s housing market, with the latest data on dwelling values, dwelling construction and dwelling rents all posting ongoing falls.
Consider first Perth dwelling values, which have now fallen by nearly 22% from their June 2014 peak, after falling another 0.4% in October:
Western Australian dwelling construction also continues to crash, with the latest approvals data for September registering more falls, which points to further declines in both commencements and completions:
Finally, Perth’s rents are still falling, down another 0.2% over the September quarter to be 22% below the December 2014 peak:
So, that’s a triple bust for Perth’s housing market, with only rents looking to be near their bottom.
This is great news for first home buyers and renters, but disastrous news for leveraged negatively geared landlords.