Brief
Perth house prices plunge 7.4% in September quarter, Domain reports
Domain data reveal the sharpest quarterly decline for Perth property, driven by rate hikes, tax changes and cost‑of‑living pressures.
By Felo News Desk · Published
Perth’s housing market experienced its biggest quarterly decline on record, with house prices falling 7.4% ($88,664) to $1.115 million in the September quarter, according to Domain’s House Price Report released on Thursday.
What happened
The report shows Perth unit prices also dropped, slipping 6.5% ($45,487) to $659,561 – the steepest fall among Australian capital cities. Prices have now declined for two consecutive quarters, marking the longest downturn since 2019.
What the reports add
Domain’s chief of research and economics, Dr Nicola Powell, described the shift as a “sharp turnaround” after years of strong growth. She linked the drop to a combination of recent interest‑rate hikes, the prospect of further hikes, changes to investment‑property tax rules and broader cost‑of‑living pressures that have reduced household borrowing capacity.
What was said
Powell told SMH, “When you think about what we’ve seen over recent years, we have seen really strong rates of price growth, and what occurred over the September quarter was a really strong reversal of that trend.” She added, “We’ve seen an awful lot of headwinds collide over a short period of time this year… Ultimately, what we have seen is probably demand is now weakening, and overall supply is now rising.”
Property expert Mark Hay said the 7.4% fall was “a bit more drastic” than he was seeing on the ground, calling it a “fundamental correction.” He noted there are about 8,000 listings on the market today, far below the 12‑15 000 listings he considers a balanced market, and that rental vacancy is under 2% with rents rising.
How it came about
Domain data also highlighted that only one suburb, Applecross, recorded a median house price decline over the year (‑7.7%). In contrast, suburbs such as Leederville (+32.8%), Madora Bay (+30.8%) and Kalamunda (+30.5%) posted the biggest annual gains. Powell said the mixed performance creates both opportunities and challenges for first‑home buyers.
Key facts
- Perth house prices fell 7.4% to $1.115 million in the September quarter (smh.com.au)
- Perth unit prices dropped 6.5% to $659,561 in the same period (smh.com.au)
- The decline marks the longest consecutive‑quarter downturn since 2019 (smh.com.au)
- Domain attributes the fall to rate hikes, tax changes, reduced borrowing capacity and cost‑of‑living pressures (smh.com.au)
- Only Applecross saw a median house price decline over the year, down 7.7% (smh.com.au)
Sources
- [1] smh.com.au — originally reported as “Perth house prices suffer record fall in unprecedented market reversal”
