Perth house prices down 7.4pc in 18 months

Perth house prices have fallen 7.4 per cent over the past 18 months, making it the worst-performing housing market in the country.

Job losses and slowing migration in the resources-dependent economy of Western Australia have pushed prices three per cent lower in the past quarter, CoreLogic's June 2016 Home Value Index shows.

"Housing market conditions in Perth are suffering from reduced housing demand resulting from a sharp downturn in migration and weaker employment opportunities," CoreLogic Asia Pacific research director Tim Lawless said.

House Prices in the West Australian capital are down 3.9 per cent over the past six months, 4.7 per cent over the past year and 7.4 per cent lower since the market peaked in December 2014.

Darwin is the only other capital city in Australia to record price falls during the past year, falling 1.1 per cent.

In contrast, Sydney and Melbourne markets surged 11.3 per cent and 11.5 per cent respectively over the past year.

Mr Lawless said rental rates had fallen substantially in Perth, highlighting lower demand for rental housing.

SQM Research figures recently showed Perth recorded the highest rental vacancy rate of any capital city in May, growing 0.2 per cent in the month to 4.7 per cent based on 9563 rental vacancies.