Perth property prices are expected to continue to fall for the rest of the year in what could be the city's worst property recession since before the Global Financial Crisis.

And while WA's strong economic prospects could prompt a recovery, analysts now fear the property market will need to show a significant turnaround before the negative sentiment can be reversed.

Perth is facing a slump in property prices.

Data released by Australian Property Monitors - owned by Fairfax Digital, publisher of this website - shows Perth median house and unit prices fell for the third consecutive quarter during the three months to March and show no sign of stabilising.

The median house price in the metropolitan area declined 1.1 per cent to $540,978, while unit prices fell 0.7 per cent, taking the median price to $363,050.