As mining eases Perth residential market marginally in decline: ABS

The Perth residential property market is officially in decline.

House prices fell in Perth during the September quarter, albeit by just 0.1%, according to the Australian Bureau of Statistics (ABS).

It was the only capital to record a decline in the ABS price index, released today.

Perth dwelling prices still sit 3.6% up for the year, but gone are the days when Perth’s housing market was the strongest in the country, boosted by the thriving mining industry.

Westpac economist Matthew Hassan noted the preliminary estimate of the ABS Residential Property Price Index showed "a notable slowdown" in Perth with prices flat over the last six months.

The preliminary estimate of the ABS Residential Property Price Index showed a solid 1.5% gain in Q3, down on Q2's 1.9% gain but in line with Q1's 1.4% rise.

Annual price growth has moderated from a peak of 10.8% at the start of the year to 9.1% in Q3, a result that was in line with expectations, Hassan suggested.

"All price measures are pointing to a clear moderation in momentum in 2014 although most suggest this is a step down from a 10-14% annualised pace to a 6-8% pace.

"To date, readings for the second half of the year point to a continuation of this pace rather than a further slowdown.

The ABS index detail shows national house prices up 1.6% over the quarter, 9.2% over the year and attached dwellings up 1.2% over the quarter, and 8.5% over the year.

He noted that estimates for Q3 and Q2 are still preliminary and subject to revision.

The ABS plans to change this arrangement in 2015, pushing back the release date by six weeks so that published figures will be 'final' from first release.

"Unfortunately that will make what is already the last price measure to be published even less timelier and useful for analysts," Hassan said.

The capital city breakdown continues to show strong gains in Sydney (+14.6% year on year), more moderate gains in Melbourne (+6.9% year on year), Brisbane (+6.7% year on year) and Adelaide (+5.6% year on year).