Some of Perth’s most sought-after locations in the western suburbs are among a list of 18 across the metropolitan area that suffered a drop in house prices over the last quarter.
The new research from RP Data Corelogic also shows 10 suburbs sustained a longer-term decrease over the course of a year.
But the figures suggest Perth’s overall housing market is faring well overall with interest rate rises compared to other cities — with a 2.2 per cent surge in value in the three months to June, taking the median house price to $585,114.
The research shows national dwelling values declined -0.2 per cent over the June quarter, with every State past its peak rate of growth.
Of the 285 housing markets in Perth that were analysed, 18 of them (6.3 per cent) recorded a decline in house values over the June quarter, while 10 saw values decrease over the entire year (3.5 per cent).
The biggest quarterly drop was in Guildford, where prices fell 2.2 per cent to $562,461.
The biggest drop over the past 12 months was in nearby South Guildford, where house prices fell 4.2 per cent in the period.
Perth units recorded a similar surge in values, increasing 1.1 per cent over the June quarter to a median of $412,149.
Of the unit markets analysed, 18 per cent saw a decline in values over the quarter, while 24 per cent declined year on year.
“After WA’s border opened in March, Perth’s house values surged 2.2 per cent over the three months to June, although the monthly growth implies this renewed growth trend has eased,” said the report.
The report said nearly one in five suburbs — 18.9 per cent — recorded a median house value of more than $1 million in June, while five (1.8 per cent) recorded a median in excess of $2 million.
Just two suburbs recorded a median unit value of more than $750,000: Swanbourne ($896,869) and North Fremantle ($822,988).
Perth has the highest-ever number of suburbs in the million-dollar club, after prices in 15 new suburbs recently exceeded the milestone median.
Research from CoreLogic shows there were 56 suburbs in Perth with median house prices above $1 million in May this year, compared to 41 a year previously.
Adding to fears about the affordability of Perth property, the new research shows in the year to May, 13 per cent of sales recorded a price of at least $1 million.
CoreLogic research analyst Kaytlin Ezzy said the suburban median in the million-dollar-club is almost twice Perth’s overall house median of $555,538, following a 5.6 per cent price rise across the metropolitan area in the year to May.
The new million dollar suburbs appear to be popular for many of the same reasons as those that lead the pack — close proximity to water, big blocks, good schools and proximity to the city.
Suburbs close to either the beach or the river include Fremantle, South Fremantle, Hillarys, Karrinyup, Iluka, Como, Alfred Cove, Shelley and Burns Beach.
Good schools and proximity to the city are likely to underpin the popularity of some of the inner-city suburbs on the list, including Gwelup — which increased from $859,5549 a year previously — as well as Inglewood, and Mount Hawthorn.
Como specialist for The Agency, Vanessa Naso, said her patch enjoyed the benefit of a riverside and central location as well as big blocks and good schools.
Nine of Perth’s top 10 most expensive house markets were located in the city’s inner region, with Dalkeith recording the highest median value at $2.96 million.
It eclipsed Peppermint Grove, were the median is $2,824,616, and Cottesloe ($2,689,912)
Yallingup houses in the picturesque south west town remain the west’s only regional market to make the million-dollar list with a current median value of $1,620,473
The research found that nationally, 1,367 or 30.4 per cent of house and unit markets analysed in May recorded a median value of $1 million or more.
“High consumer sentiment, tight advertised supply, and low interest rates fuelled strong home value growth throughout 2021, resulting in a new record high annual growth rate of 22.4 per cent nationally over the 12 months to January,” Ms Ezzy said.