AUSTRALIA'S super rich aren't immune to the property downtown with real estate performance in battler suburbs outstripping the country's wealthiest postcodes.

The property divide between the blue-ribbon belt and struggle street has narrowed significantly as interest rates and homebuyer jitters continue to erode the top end of the market.

Median house prices in prestigious suburbs fell up to 43 per cent since peaking in 2008, according to RP Data figures out today.

Property experts predict that the performance slide in salubrious enclaves could continue for at least three years, as luxury home buyers remain sidelined in what is one of the most overpriced real estate sectors of the world.



And while price slashing may attract bargain hunters, pundits warn that the premium home market is riskier than ever due to the lofty Aussie dollar and volatile share market.

Perth's Mossman Park, crowned Australia’s most expensive suburb last year, now lays claim to the title of hardest hit by the property gloom.

Real estate losses dragged the suburb's median house price down by 43.1 per cent to $1.25 million.



Mortgage stress



Sydney's well-heeled Hunters Hill, which has a mean taxable income of $125,000 a year, suffered a similar fate, with median home prices falling 31.1 per cent to $1.41 million.



Meanwhile, mining boom capital Perth has the unenviable title of holding nine of worst performing council region’s followed by Sydney (7) and Adelaide, Hobart and Melbourne (all with 3).



In contrast to the pointy end of the market, median house prices performed best in cheaper suburbs.



The smallest declines nationally were in parts of Western Sydney, home to some of the country's lowest-income earners.

In Blacktown, Liverpool, and Campbelltown, median house performances run against the grain of recent figures showing rocketing mortgage default rates. None recorded a fall in median price.



Similarly, across the list of 25 best-performing capital city regions, none have a median house price greater than $1 million and more than half have a median house price which is below $500,000.



Perfect storm



RP Data research analyst Cameron Kusher said wealthy suburbs have dragged down Australia’s house values.



"The premium sector is being impacted by a perfect storm of forces such as consumer conservatism, higher interest rates, poorly performing equities markets, unstable global economic conditions and lower levels of business and consumer confidence," he said.



However, he predicts that both ends of the market will remain soft for some time.



"With subdued residential property markets likely to persist over the next year, we anticipate that the premium and most affordable segments will underperform," he said.



"The most affordable sector will likely see demand dampened by interest rate rises which impact lower income households and the premium sector will be hampered by those forces."