Perth property owners could be in for more pain after figures from the Real Estate Institute of Western Australia (REIWA) showed median house prices in the city took a drastic fall over the June quarter.

According to REIWA, the median house price in Perth fell by 3.6%, or $20,000, over the June quarter; the biggest three month fall since the September quarter in 2013.

REIWA president David Airey believes the price fall in Perth shows the city is currently in the grip of a significant price correction.

“Some of this fall can be attributed to the composition of sales, with a greater turnover of more affordable properties pulling the median downwards, but it’s also clear there is a market correction underway and many sellers are having to discount to find a buyer,” he said

Apartments in Perth experienced a price drop from $440,000 to $420,000 over the quarter, while in regional areas the median house price dropped by $10,000 to $380,000 and the median apartment price by around $4,500 to $325,000.

The price fall hasn’t attracted bargain hunters to the Western Australia capital, with the average time a property is spending on the market stretching out to 71 days.

“The stock of listings has risen significantly over the last six months, but appears to have levelled out. There were 13,739 properties on the market in the quarter, which is only up 63 on the March quarter,” Airey said.

“There were 10,200 sales in the June quarter, down by 900 in the previous quarter, but more significantly, down 21.5% in turnover from the same time last year.”

Airey said that sellers across the June quarter had been required to offer an average discount of 6% to secure a sale and even those who have held on to their properties have been hit as rents in Perth continue their fall.

“There were 8,128 rental properties looking for tenants at the end of the quarter, up 23% on the March quarter figure and 40% more than the same time last year. 

“As a result, the metropolitan median rent has dropped a further $10 to $420 per week for the quarter. This means the overall median rent has now dropped by $55 over the last two years.”