Whilst it's not really my area, I live in Perth and follow the market pretty closely.
My impression is that prices have fallen, but aren't crashing. Well priced properties sell quickly, suggesting pent up demand. The problem is most vendors seem to be delusional, and price their properties as per Nov 07. They then stagnate, then either get pulled from the market, or come down in asking, often 10-20%.
I actually think now is not a bad time to sell, all things considered. Capital gain in Perth for 3-5yrs is not going to happen.
In terms of would I buy...not yet. Yields are still very poor, especially compared with Melb, Syd, etc. No one wants to gear into a stagnate asset.
