According to a recent report from Domain, prices of real estate in Perth have continued to drop since the last federal election with the exception of Stirling.
While there were signs of a turnaround in the first part of 2018, real estate prices in Perth have dropped even more. Economists believe that this is due to the negative impact of tighter loan requirements and a decline in investor demand.
In Perth, real estate values dropped 6.1 per cent to $535,000 since the last federal election. In other cities, property values in Brand fell 8.3 per cent, Swan by 7.3 per cent, Curtin by 5.2 per cent, and Moore falling 4.8 per cent.
Property prices in Perth have been falling for some time now. Median real estate prices dropped 1.8 per cent in the two years to December 2018 to a median value of $550,000. The city has been in a property downturn for four years and is now approaching its fifth year.
Only very few suburbs were able to go against the downward trend in property prices. Suburbs that have quality services which include schools, entertainment zones, and decent transport links have prevented current price falls.
Stirling, one of the few places where house prices grew by 3.6 per cent to $525,000 since the last election, consists of suburbs that have much of these quality services.
According to Perth property valuer Gavin Hegney, Stirling highlighted aspirational growth areas along the coast including Scarborough and Watermans Bay which were favoured for their new high quality yet budget-friendly homes.
He states, “If you were going to say what real estate has performed in the past couple of years, it probably has been the aspirational real estate and new city, quality living, and Stirling encompasses that with a main transport route.”
Week on week, real estate in Perth are seeing a decrease in sales volume while stock levels continue to increase. Therefore, this could result in more reductions in property prices this year should this trend continue.
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