The threat to Perth prices from a large fall in Syd & Melb prices is intetest rate contagion. If bank intetest rates rise because of increasing capital costs due to rising risk in eastern market, rates for Perth mortgages would also increase. Generally banks dont differentiate rate for different cities. Whatever rate they set its nationally applied. Thats probably one of the few things thats "in lock step"..
If interest rates increase i am confident Perth prices will remain under pressure..
