Perth house prices are tipped to grow at the slowest pace in the nation next year, as the mining slowdown continues to bite.

A report also says Perth prices could be overvalued by as much as 30 per cent, but analysts do not expect a major correction.

The SQM Research report is forecasting house price rises nationally of 6 to 10 per cent in 2015, provided interest rates stay on hold but in Perth, it expects flat or minimal growth of up to four per cent.

That is the lowest rate of all state capitals.

Sydney is expected to post the strongest gains of up to 12 per cent, followed by Melbourne of 9 per cent and Brisbane of 8 per cent.

If interest rates were cut in the first quarter of 2015, the report said house prices would likely rise by 2 to 5 per cent.

SQM said capital cities on average are overvalued by about 10 per cent, but in Perth, that jumps to 30 per cent, the highest in the country.

Perth is the most overvalued city next to Darwin.

The report said Perth, along with Darwin, could be "on the verge of a correction".

"We believe that Perth and Darwin look on the verge of a correction based on our leading indicators plus the rather negative outlook for their local economies," the report said.

It suggests a major correction is not likely but "a minor one is a real possibility".

Last year, SQM said a downturn in the Perth property market would last 18 to 24 months unless there was a surge in commodity prices.

"There has been no 'new surge' in commodity prices and so the downturn will likely persist throughout 2015," the report said.

"A major correction does not appear to be on the cards, but a minor one is a real possibility."

Property analyst Gavin Hegney believes a correction is possible.

"There is some fear of unemployment in Perth at the moment, particularly around the mining and mining-related services, and that's probably somewhat unique in Australia," he said.

"And with wage growth likely to remain subdued, house prices are expected to track inflation.

"That's what we're likely to see for the next three to five years in the Perth market if normal cycles prevail, and I see no reason for it not to be the case."

The report said advertised prices in Perth had fallen slightly, but the number of houses for sale had not spiked, and low interest rates were supporting demand.

It said if interest rates were cut next year, prices could rise by up to 5 per cent.