Perth is in the grip of its deepest property price decline in 30 years with no sign of the downswing abating, new research from CoreLogic shows.
Dwelling values in the western capital have slipped 19.2% lower than its peak five years ago.
“The current decline is the deepest of any over the past 30 years, 19.2% lower,” CoreLogic research analyst Cameron Kusher says.
Kusher says while Perth property values have been at their peak for 38.5% of the past 30 years, relief may still be some time away.
“The current downturn is showing no signs of ending as yet and has been ongoing since the middle of 2014.”
Regionally, the current housing downturn has seen values fall by 32.5% since their peak in January 2008, the research cited.
“There is no evidence as yet that the declines are ending,” Kusher says.
“As a result of the ongoing declining values, regional WA values have only been at historic highs for 32.1% of the time over the past three decades.”
The report shows national dwelling values are 8.2% lower than the latest peak – the largest decline in the past three decades. Despite this, from May 1989 to May 2019 values were at an historic high for 56.8% of that time.
While Sydney values have dropped 14.8% and Melbourne by 11.1% since their recent peaks, Darwin recorded the greatest fall of any capital city, with prices down 29.5% since the Top End’s peak in 2014.
Kusher says downturns in the past three decades have generally been small blips, with values returning to previous peaks fairly quickly. But this has not been the case for several regions.
“The current downturn for a number of regions is unprecedented in terms of the magnitude and length of declines,” he says.
“Given this, it could be a number of years after values begin to recover until they return to their previous highs.”