The seaside suburb of Perth, where house prices have risen by 52 percent

“I expect the suburb to see slow and steady positive growth through 2023.”

Perth remains Australia’s strongest housing market, with prices rising to a record median high of $658,270 in the December quarter through the end of 2022, up $35,209 year-on-year, according to the latest Domain House Price Report released on Wednesday.

Nationally, Sydney and Brisbane have seen the sharpest quarterly declines in house prices and, along with Canberra, are also the furthest from their respective highs.

But Domain chief economist Nicola Powell said the rebound continues to lose momentum as quarterly house price growth has been the slowest this price cycle, reducing annual gains to just over a two-year low.

“Unit prices continued to fall in the December quarter, although the pace of decline has slowed compared to the previous quarter,” she said.

“Perth is the only capital with a record price differential between property types after house prices outperformed unit prices for seven consecutive quarters.

“This is likely to expand as annual growth rates go in opposite directions.”

The worst performing markets in Perth were predominantly units with properties in Claremont, Como and Mount Lawley, all of which suffered double digit falls. Homes in Osborne Park fell 8.7 percent to reach a median of $381,500.

Perth property expert Trent Fleskens said it was encouraging to see the Perth market continue to move forward due to its critical undersupply in both the rental and sales markets.

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“Contrary to markets across the country, price growth in this environment is supported and possible as property generally remains affordable for the average buyer despite a doubling in interest rates over the past 12 months,” he said.

“That doesn’t apply to most other markets in Australia.

“As a result, the nation’s investment efforts are now focused solely on our relatively small market.”

Fleskens said as affordability continues to become a factor in the Perth market, buyers will start looking at units.

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