Mining slowdown softens Perth market

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Sectors around WA are starting to feel the effects of the slowdown in the resources boom and the Perth property market is no exception.

According to the latest RP Data CoreLogic Home Value Index results, Perth recorded a -0.4% decline in dwelling values over the month of September itself.

Furthermore, it recorded a -0.6% decline in dwelling values over the September quarter.

The latest REIWA figures were a bit more positive – they showed a slight lift in Perth’s median house price over September.

However, they also showed a decline in sales activity over the same period.

REIWA president David Airey said September was traditionally a slow sales month due to a number of different holidays and sporting finals.

Sales numbers for the September quarter were down by 7% on the June quarter and down 15% on the same time last year.

In relation to prices, Airey said that - despite some modest monthly variations - there had been little movement in the median house price between recent quarters.

“September’s lift in the monthly median reflects a compositional shift in sales with a small increase in turnover closer to the city and some weakness in outer urban markets.”

Meanwhile, the REIWA data also showed that Perth’s rental market has slowed down significantly.

The city recorded a vacancy rate of 4%, although there were 150 fewer rental listings for September than there was in August.

Although the median rent for the metropolitan area held steady at $450 per week, rents had softened since June, Airey said.

“Over the last three months, typical rents for houses have dropped $10 to $450 per week, while rents for units and villas have dropped by around $15 to about $430 per week since June.”

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