Perth’s housing market is in deep trouble
Six months ago, Perth’s housing market looked impervious to a house price correction, with values continuing to grow at a solid pace. The tables have well and truly turned, with Perth’s dwelling values now falling at the equal fastest pace among the major capital cities, down by 1.7% over the past month, according to Cotality. The post Perth’s housing market is in deep trouble appeared first on…
Perth's housing market is experiencing a significant downturn, with values falling at the fastest rate among major capital cities, according to Cotality. In just one month, dwelling values have decreased by 1.7%. The situation is exacerbated by a surge in for-sale listings, which have increased by 70.2% over the past two months, marking the largest rise among the capital cities. Simultaneously, sales volumes have plummeted by 19% year-over-year, with Perth lagging behind other cities in this area.
Vendors in Perth are discounting their properties more aggressively, with the exception of Sydney, where the discount rate is tied at -4.8%. This trend suggests that sellers are striving to reduce prices to attract buyers but are still unable to secure sales. Furthermore, rental listings in Perth have surged by 16.9% compared to the same period last year, indicating a decrease in landlords' ability to command higher rents.
The overall outlook for Perth's housing market is bleak, with demand dwindling and supply surging. This scenario points to an imminent sharp decline in dwelling values and a slowdown in rental growth. Perth has always been known for its volatile boom-and-bust housing market; however, the current correction phase has taken a more severe turn. After witnessing a doubling of values over five years, the market is now firmly in the correction phase.
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