In spite of great hopes for the Perth property market the Western Australian capital has delivered a less than stellar performance in recent months.
In the three months ending May 2011’s median dwelling values fell by 4.2 per cent, seasonally adjusted, to rest at $462,500, according to RP Data and Rismark’s latest figures.
“Despite what appears to be fairly strong fundamentals, the Perth housing market doesn’t appear to be turning just yet,” said RP Data’s Tim Lawless.
“For a city that is recording rapid population growth, low unemployment and a large private capex boom, house prices have nevertheless been contracting since late 2007, after years of above average growth in the pre-GFC period.
“Today the critical missing piece of the puzzle seems to be buyer demand.”
In the 12 months ending May 2011, Perth’s median dwelling values are now down 7.5 per cent.
While the immediate outlook for the Perth market is unclear, a recovery is eventually expected.
BIS Shrapnel’s most recent forecast predicts Perth house prices to rise by 19 per cent over the three years to June 2014, representing a rise of just under six per cent per annum.