Perth property prices in reverse over 2014-2015 financial year.

July 02, 2015
Melissa McCullock

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PERTH real estate continues to travel in the opposite direction to the eastern states, as house price data from the full 2014-15 financial years shows.

The latest CoreLogic RP Data home values results reveal capital city dwelling values went up by 9.8 per cent in the past year, not far off last year’s performance of 10.1 per cent.

But that was largely driven by Sydney, the strongest performer during the financial year with its values up by 16.2 per cent, followed by Melbourne up 10.2 per cent.

In Perth, house prices fell 0.9 per cent in 2014-15, with a 0.4 per cent drop during the June quarter capping a dismal year for property growth.

 width=Only Darwin was a worse performer than Perth in real estate during the 2014-15 financial year.

CoreLogic RP Data research analyst Cameon Kusher said he thought the Sydney and Melbourne markets would continue to see growth in the coming months.

“We thought that the market would have started to slow by now, so it is definitely stronger than we expected it to be, in particular in Sydney and Melbourne we thought those markets would slow more so than they have,’’ he said.

He said investment had driven a lot of that.

“People do not have another viable option as far as to where to park their money at the moment, so they are coming into the housing market and it is continuing to drive that market and of course the offshore buyers, they are seeing exchange rate benefits for housing, it is actually looking cheaper than it was 12 months ago to them as well.’’

Mr Lawless said there were other economic and demographic reasons for why Sydney and Melbourne had performed so strongly as well.

“These states are more sheltered from the mining sector downturn and have benefited from the strong multiplier effect of housing construction as well as a vibrant financial services sector,’’ he said.

“The Perth and Darwin markets are weakening in line with the downturn in the resources sector and an associated weakening in infrastructure investment and a marked slowdown in

migration.”

 

 width=The mining downturn and slowing migration are among the reasons for a lack of growth in Perth real estate prices.

BEST PERFORMERS 2014/2015 FINANCIAL YEAR

Sydney 16.2 per cent

Melbourne 10.2 per cent

Brisbane 3.4 per cent

Adelaide 4.5 per cent

Perth -0.9 per cent

Hobart 0.9 per cent

Darwin -2.9 per cent

 

Posted in: Property market

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