Pain and gain: Perth’s biggest property winners and losers revealed

Perth has recorded the biggest reduction in the rate of loss-making sales across the capital cities, declining from 9.6 per cent in the September quarter to 8.4 per cent in the December quarter.

Fresh data in CoreLogic’s latest Pain and Gain Report, released Wednesday, marked the second consecutive quarter where more than 90 per cent of Perth resales had made a profit.

CoreLogic head of research Eliza Owen said Perth was at its most profitable level since July 2015, based on the resale analysis of around 90,000 homes and units across the nation.

“Between December and the end of February, Perth dwelling values rose 3.5 per cent, including a 3.7 per cent uplift in the unit segment,” she said.

“Given the high correlation between growth in the home value index and the rate of profit-making sales, a higher rate of profit making house and unit resales is expected in the March quarter.”

In Perth, 93.7 per cent (374 out of 399) of markets recorded a capital gain of 10 per cent or more over the year, with units in the coastal suburb of Waikiki recording an impressive 42 per cent annual rise.

CoreLogic economist Kaytlin Ezzy said despite three rate hikes, worsening affordability and the rising cost of living, the increasingly entrenched undersupply in housing stock and above-average demand through strong net migration had helped push values higher.

“Houses in Perth’s inner-city suburb of Daglish was the only market to record a decline in values across the city, falling 0.3 per cent over the three months to February,” she said.

“At the other end of the scale, one house market (Kwinana Town Centre) and four unit markets (Dudley Park, Waikiki, Baldivis, and Halls Head in Perth’s Mandurah and South West regions) have recorded phenomenal quarterly growth of more than 10 per cent.”