There appears to be no end in sight for Perth’s property market downturn.

Despite predictions last year that Perth’s property values may be bottoming out – having endured their longest and deepest declines since the 1980s, with prices falling 17.8 per cent since their peak in June 2014 — experts are now warning they may have further to fall.

It means Perth’s market is on track to record five years of consecutive price declines, with the record set to be reached in June.

“In late 2017 and early 2018 it was looking as if the falls were coming to an end,” CoreLogic warned on Thursday.

“However, the market has weakened further in line with weaker labour market and economic conditions as well as tighter credit conditions.”

It makes Perth one of the toughest property markets in the country for property owners.

However, Darwin’s property values have dropped 27 per cent since its downturn began in May 2014, making it the deepest downturn recorded for any capital city over recent decades.

Australia is in the middle of its third-steepest housing downturn since the 1980s, with prices falling 6.8 per cent since the nationwide downturn began in October 2017.

“Although that may not seem like a substantial downturn, since the early 1980s there have only been two downturns which were larger, 2008-09 and 1982-83,” CoreLogic says.

“Nationwide housing market downturns have also been generally fairly short-lived with the current downturn of 16 months already the second longest with the 2010-12 decline running two months longer than the current downturn.”

The decline in values through the current downturn has been bigger across the combined eight capital cities, with values now 8.6 per cent lower.

By next month, assuming the falls continue, this will be the biggest downturn in the combined capital city index any time since 1980.

“With values now falling across most capital cities the question, of course, becomes when do the falls stop,” CoreLogic warned.

“No one really knows the answer to that question.

“Our models show, at least for the short-term, that values are likely to continue trending lower, with the rate of decline easing later this year and into 2020.

“The other main question is once markets reach a trough, how quickly will the market recover? Historically, market recoveries from their trough have generally been fairly rapid, however, the recoveries have generally been driven by lower interest rates or a mix of stimulus such as the first homebuyers grant boost.

“Although there is an expectation that interest rates may move lower, we probably won’t see the entire rate cuts passed through to mortgage rates and the much tighter credit conditions are likely to limit any rebound in the housing market, particularly given borrowers are being assessed on their ability to repay a mortgage at a much higher rate (above 7 per cent).”