THE property market slow-down has become further entrenched, with national values posting the first annual slide in five-and-a-half years.

Australian housing prices fell 0.1 per cent in May, taking the annual loss to 0.4 per cent, which was the first time values have fallen on an annual basis since October 2012, according to property data firm CoreLogic.

In Perth, house prices continued sliding back, falling another 0.1 per cent in May.

It meant Perth property has slid back 1.8 per cent in the last 12 months year, leaving WA’s capital with a median dwelling value of $463,319.

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CoreLogic head of research Tim Lawless said the negative national growth rate was reflection of weakening house prices across the capital cities, particularly in Sydney and Melbourne, which comprise almost two thirds of Australia's housing market by value.

But it was a rosier picture for regional cities, where housing values grew by a combined 2.2 per cent annually, led by Geelong, in Victoria, which rose 10.2 per cent.

"The combined regional markets have helped to offset a broader decline, with dwelling values consistently rising, albeit at a much slower pace relative to the growth seen in Sydney and Melbourne over the previous growth phase," Mr Lawless said.

Over the past three months, Melbourne has overtaken Sydney as the weakest capital city housing market, while Hobart was the best performer.