Perth home values spike

House prices in Perth have increased at the highest rate in the nation over the past 12 months, but the city remains one of the most affordable in the country.

CoreLogic’s home value index showed Perth’s house prices have risen by 1.3 per cent in September, outpacing the national increase, to a median value of $618,363.

Annually, Perth’s home values have climbed by 8.8 per cent, which is the highest of all the cities and above the national rise of 3.9 per cent.

CoreLogic’s data showed national home values rose for the eight consecutive month, with a 0.8 per cent lift in September to a $740,668 median.

In Perth, home values reached another peak, yet the city’s median house price is the second lowest of the country, behind Darwin at $493,362.

Sydney continues to record the highest home values nationally, with a $1.11 million median, behind Canberra at $836,327 and Melbourne at $776,716.

CoreLogic research director Tim Lawless said there was a slowdown in the rate of growth, led by the upper quartile of the capital city housing market.

“After leading the recovery cycle, the premium housing sector might be losing some steam, with the quarterly rate of growth across upper quartile dwellings easing back to 2.3 per cent while the lower quartile growth rate accelerated to 3.2 per cent,” he said.

“This shift is partly attributable to the lower value capitals such as Perth and Adelaide recording a faster rate of growth, however even in these cities it is the lower quartile that has outperformed.

“In the more expensive cities, Sydney and Melbourne, the broad middle of the market is now recording the highest growth rate after previously being led by the upper quartile.  

“Possibly we are starting to see renewed affordability challenges deflecting more demand towards the middle of the market where barriers to entry are lower.”

REA Group’s Proptrack showed a 0.71 per cent rise in Perth’s home values to a $597,000 median value.