I don't think you can draw any meaningful conclusions in relation to the availability of credit currently in Perth and the 20-25% drop in market prices. It is not a normal market situation. With the exception of Perth and regional QLD the Australian economy has been powering along with our banks making record profits. The bank with the largest exposure to Perth/WA as a % of their book is a 100% owned subsidiary of Australia's largest bank and thus has rode out the storm.
If Sydney and Melbourne drop 20-25% then you'll see what happens to credit.
