JENNA THOMAS & HAYLEY WILLIAMS
Perth’s house prices nosedived by 3.5 per cent in the last three months, making the Western Australian capital the worst performing capital city in the nation from the perspective of existing home-owners.
The Core Logic RP Home Value index report says Perth dwelling prices fell by 3.5 per cent in the quarter to October 31 as a result of a decrease in resources-related infrastructure spending.
Real Estate Industry Association of Western Australia Deputy President Damian Collins said it is definitely a buyers’ market and the best opportunity Perth has seen in a long time.
“It’s a great opportunity for people who have been looking [to get] into the market … to take the plunge,” Mr Collins said.
“Perth houses are significantly cheaper than what you’d find in Sydney and Melbourne.”
Mr Collins said the number of properties for sale across metropolitan Perth has increased to about 16,000 – a balanced market generally sits at 12,000 to 13,000.
Realtor with Subiaco-based Property Wizards, Trevor Dunkley, said the drop was just part of a typical cycle influenced by a range of factors.
“The infrastructure [and] the mining sector is coming to an end …” Mr Dunkley said.
“Replacing that now is oil and gas, tourism and government infrastructure.”
It is not the resources sector alone causing the lull in the market.
Mr Collins said that, by and large, people just are not confident.
“There is lack of confidence in the market due to all the negative discussion of what has happened in the mining sector,” he said.
Realtor with Acton Real Estate at Subiaco, Louis Carr, said it felt like there are less buyers at open homes.
“The numbers at home opens are down from where they were six or seven years ago significantly,” Mr Carr said.
“What you find also at the moment properties that are on the market for 21 days, if they haven sold in 21 days, they’re overpriced.”
Desperate sellers are looking to auction as a fast solution.
“More agents or more properties are being offered for sale by auction,” Mr Carr said.
“The average time on the market for homes in Perth is about 60 days.
“Auction is 22 days.”
The southern Perth suburb of Mount Pleasant recorded the largest drop in dwelling prices during the quarter – at 8.2 per cent.
Despite the overall decrease, St James also in Perth’s south, has managed to achieve an increase of 5.1 per cent in dwelling sale price.
Darwin and Hobart were the only other two capital cities that recorded a drop in dwelling values over the quarter.