Perth property prices drop 2.8%

Even so, prices were still up 3.7 per cent in the corresponding period from the previous year.

The median price of other dwellings also saw declines over the same period — down 0.2 per cent to $399,000 — a drop of 3.9 per cent from the same period in 2021.

Even so, REIWA chief executive Cath Hart is optimistic about how the city’s market is tracking, given that the median house price fell across all capitals over the same period.

She said that “the Perth market is holding up well in the face of interest rate rises, supported by a strong economy, low unemployment, population growth and affordable housing”.

“With rate rises likely to continue into the new year, we are starting to see buyers adjusting their expectations and budgets, but low supply and strong demand should see prices remain relatively steady in the coming months,” the CEO continued.

The subtle changes to median prices meant Perth has “maintained its title as the most affordable capital city by median price”, REIWA flagged.

Darwin is the second-most affordable, offering purchasers a median house price of $550,000 and a median other dwelling price of $403,500.

That contrasts sharply with the most expensive capital city, Sydney, which has recorded a median price of $1,464,000 for houses and a median price of $755,000 for other dwellings.

Ms Hart has flagged that while Perth does remain an affordability haven for buyers, tenants are not so lucky.

“It has been a challenging time for the rental market,” Ms Hart conceded.

“The housing shortage has seen the vacancy rate fall and prices rise.”

Caused in part by an exodus of investors from the local market over the past two years (and 18,000 fewer rentals now than the peak in January 2021), Ms Hart said they are “starting to see increasing investor activity, particularly from eastern states investors”.

According to the CEO, this bodes well for stock levels: “Rental listings will remain low in the medium term but are expected to improve over the next 12-18 months, as both building completions and investor activity increase.”